#1Investor Presentation May 2018 DELIVERING RESULTS GENERATING VALUE Peabody#2Statement 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, 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. Peabody 2#3BTU Offers Unique Investment Opportunity INVESTMENT THESIS We're the leading global pure-play coal company, serving power and steel customers in more than 25 countries on 6 continents... We have significant scale, high-quality assets and diversity in geography and products FINANCIAL APPROACH 1 2 Maintain Generate Financial Cash Peabody Strength 3 Invest Wisely 4 Return Cash to Shareholders 3#4Peabody's Significant Scale Offers Numerous Benefits • High reserve-to-production ratio allows for optimized mine planning, solid cost structure and expansion optionality • Benefits customers by providing flexible production and sourcing, improved confidence in reliability of supply, "alternative brand name" for supplier diversification • Enables sharing of skills, knowledge, equipment, contracts and best practices • Scalable SG&A and shared trading, administrative and technical services ● Improves access to financial markets THE PEABODY WAY 192 Million tons of coal sales 5.2 Billion tons of proven and probable reserves 23 Operations in 8 states and 2 flagship countries Peabody Note: Coal sales and proven and probable reserves as of Dec. 31, 2017. 4#5Company Offers Extensive Diversity of Geography, Customers and Products Met Coal Thermal Coal Met & Thermal Coal Serving more than 25 countries on 6 continents Peabody 5 Note: Highlighted countries represent customers served in at least one year between 2015 - 2017.#6Diversity Offers Significant Competitive Advantage Percentage of Total Revenue from Customer Taiwan Japan Geographic Region in 2017 India Australia China South Korea Western Other Midwestern PRB • Large number of revenue streams ● Multi-regional exposure limits operating, logistics and demand risks Increased risk-adjusted returns; non-correlative demand drivers • Movements in currency and economic fundamentals • Regulatory, political diversification Peabody Note: The company attributes revenue to individual regions based on the location of the physical delivery of the coal. Revenue percentage for FY 2017. 6#7Industry Overview Coal remains major part of global energy mix and essential ingredient in steelmaking 8 billion tonnes of coal fuels 37% of global electricity and enables continued growth in steel production • Peabody strategically positioned with seaborne production to meet best demand centers and well- placed, low-cost U.S. assets 37% Share of global electricity 30% Share of U.S. electricity 1B Billion tonne per year global met coal demand Peabody 7 Source: Industry reports and Peabody Global Analytics. Electricity generation from IEA World Energy Outlook 2017.#8Seaborne Conditions: Global Coal Undergoing Several Long-Term Trends • Global coal demand likely marked by modest overall growth • Increases in Asia demand more than offset declines in U.S. and Europe as demand shifts to Pacific Small changes in supply-demand can lead to major shifts in pricing • Australia expected to continue to drive majority of global seaborne supply growth for both met and thermal 11 Million tons - increase in 2017 global seaborne met coal demand 25 Million tons - increase in 2017 global seaborne thermal coal demand Peabody Source: Industry reports and Peabody Global Analytics. 8#9IHS Markit: Total Global Coal Generation Capacity to Increase 15% by 2030 Total world coal- fueled capacity grows 15% by 2,030 to 2,389 GW • While ROW coal- fueled capacity expected to decline 125 GW from 2017 - 2030, Asia capacity rises 439 GW • World growth greater than entire U.S. fleet Dalrymple Bay Coal Terminal Peabody Source: 2018 IHS Markit. All rights reserved. The use of this content was authorized in advance. Any further use or redistribution of this content is strictly prohibited without prior written permission by IHS Markit. 9#10Small Changes in Seaborne Metallurgical Supply and Demand Have Outsized Impact on Pricing 300 250 $191 200 150 100 Seaborne Metallurgical Coal Supply & Demand (tonnes in millions) $147 $113 $87 $143 $188 ⚫ Chinese imports increase 10 million tonnes in 2017 Chinese net finished steel exports decline 35% in 2017 • Global demand increases 11 million tonnes in 2017; supply grows 4 million tonnes Spot HCC Pricing (dollars per tonne) $350 50 50 $300 Demand Supply $250 $200 2012 2013 2014 2015 2016 2017 $150 $100 Pricing reaches highest level since 2012 on modest demand growth, supply constraints $50 $0 Peabody Source: Industry reports and Peabody Global Analytics. Jan-16 Apr-16 Jul-16 Oct-16 سل Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 10#11Seaborne Coal Pricing Remains Robust on Strong Global Coal Conditions During First Quarter Seaborne Thermal Coal ●India seaborne demand up 21% due to utility stockpiles restocking and weak domestic production China imports rise nearly 16 million tonnes on ~10% increase in power consumption • ASEAN imports increase on strong economic growth and expanding coal generating capacity • Australian exports stable with prior year Seaborne Metallurgical Coal • Global steel production up 4% India imports increase 21% on strong steel production ⚫ China seaborne demand declines approximately 5 million tonnes • Australian exports in line. with prior year MARMARAS NAVIGATION Peabody 11 Note: All stats are compared to prior-year period.#12U.S. Fundamentals: Secular Decline Expected to Moderate Over Next 5 Years • Declines in coal use and share of electricity expected to slow as gas prices stabilize from last 5-year period • Lowest-cost basins most competitive against natural gas Retirements expected to drive 15-20 million ton-per-year average decline over each of next five years Declines likely front-loaded in period • U.S. provides meaningful cash flows for Peabody with most operations competitive with natural gas Peabody Source: Industry reports and Peabody Global Analytics. ~50 Million ton demand change between $2.80 and $3.20/mmBtu natural gas 27.4% Third-party avg. of coal's share of U.S. generation in 2022 ~40 GW Expected U.S. coal plant retirements over next 5 years 12#13U.S. Coal Demand Declines From First Quarter 2017 on Increased Gas and Wind Generation 68 889 999 65 U.S. Utility Coal Stockpiles (Max Days Burn) 59 59 57 55 58 51 50 49 49 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2016 2017 2017 2017 2017 2018 • Total load up 5% YTD through March; Coal generation down 3% • PRB consumption flat through March compared to 6% decline in other coal producing regions • U.S. exports robust; Coal production declines 3% in first quarter Total coal stockpiles decline 17% below prior-year levels on max days burn basis through March SPRB stockpiles at 53 max days burn, down Peabody 7 days from 2017 levels. 13 Source: Industry reports and Peabody Global Analytics. U.S. utility coal stockpiles as of quarter end.#14Peabody's Strategies: Strong Foundation for 2018 Priorities A leading position in U.S. PRB and Illinois Basin Seaborne thermal and metallurgical coal platform to capture higher-growth Asian demand centers S ✓ Operational Financial Portfolio Focused Best Excellence Strength Management Engagement People Drive safety, Maintain target Continually Support our Employ the productivity, capital structure cost efficiency that enables and sustainable enhance the value of our portfolio license to reclamation performance. performance through all market cycles shareholder emphasizing high-quality assets targeting the most attractive operate and advocate favorable energy policy and advances in generation technology including and maximize returns through disciplined demand centers. HELE and Peabody capital allocation. CCUS. best people in the industry and align their talents to maximize their full potential. 14#151 Australian Operations: Multiple Benefits to Peabody Australia strategically positioned to serve higher-growth Asia-Pacific demand centers 2 Australian segment strengthens and diversifies Peabody's portfolio 3) Nine mines offer quality export thermal and met coal products to multiple countries 4 Tier-one thermal segment with quality assets structure and strong margins 5 Double-digit met coal volumes for 6 foreseeable future Reserve position and lease development areas offer long-term optionality Peabody 15#16Australia Spotlight: Advancing New Longwall at North Goonyella, Underwriting Double Digit Met Volumes New CAT Longwall Payback begins in 2018, nearly a year in advance of commencement Peabody • New longwall expected to replace current longwall system in 2019 New longwall offers several benefits: - - - Avoids lease payments/buyout Reduces longwall downtime in 2018, 2019 Transitioning to higher-quality coal panels in 2019 Limits timing, amount of repairs of new longwall once in commission 16#17U.S. Operations: Multiple Benefits for Peabody 1 6) Strategically positioned in best U.S. regions serving broad customer base 2 Operates regions as complexes, sharing resources for best value 3) PRB operations routinely delive margins above other producers 4 Strong cash generator offering meaningful returns 5 Contracting strategy provides long-term revenue visibility Reduced costs even with lower volumes; also lowering 2018 cost guidance for each segment Peabody 17#18U.S. Operations: PRB Adjusted EBITDA Margins Routinely Superior to Other PRB Coal Companies 25% Adjusted EBITDA Margin of PRB Producers (2014-2017 Average) 21% 17% Peer Avg. 11% Consistently delivers Adjusted EBITDA margins superior to other PRB producers - 56% higher Adjusted EBITDA margins than average of other PRB coal producers Lowest-cost producer • Well-capitalized reserve position through prior reserve acquisitions BTU Peabody - No new LBAs required for nearly a decade Source: Public company reports. Other PRB producers include Alpha Natural Resources / Contura (through Sept. 30, 2017), Arch, and Cloud Peak (listed in alphabetical order). Adjusted EBITDA margin is a non-GAAP measure and may not be calculated identically by all companies. Please refer to the appendix for information on this non-GAAP measure. 18#19U.S. Spotlight: Peabody Benefits from Contracting Strategies and Broad Customer Base Peabody ships to more than 30 states, more than 80 customers and 145+ plants; utilizes multi-source, multi-destination agreements Peabody Note: Customers served in at least one year between 2015 and 2017. 19#20Strategies Implemented by Aligned and Engaged Employees, Management and Board Employee Base • 7,100 globally ● Average tenure • • with company nearly 10 years All granted shares of BTU as part of emergence Incentives aligned with key business drivers Management Team • Team combines over 150 years of industry experience • Senior posts held on multiple continents with new perspectives • Compensation based on safety, free cash flow per share, EBITDA, ROIC, TSR, environmental performance Board of Directors • Board reconstituted in April 2017 Eight of nine directors independent Experience across mining, energy, equipment, finance and other industries • Focus on good governance, strategy and risk management Peabody Note: Employee count as of Dec. 31, 2017. 20 20#21Generate Cash - Record Free Cash Flow in First Quarter 2018 • Operational results paramount to strong cash generation • Non-core asset sales provide incremental cash flows ● Substantial global NOL positions significantly limit future cash taxes for extended time Operational Results Non-Core Asset Sales - ~$3.6 billion U.S. NOLS; ~70% unlimited by Section 382 - ~A$3.9 billion Australian NOLS $90 million cash tax refunds in 2018 - $85 million AMT credits refunded in 2019 and beyond • All remaining restricted cash expected to be released in second quarter 2018 Cash Flow Utilizing NOLS Releasing Restricted Cash Peabody Note: Free cash flow is a non-GAAP metric. Refer to the reconciliation to the nearest GAAP measure in the appendix. 21 22#22Maintain Financial Strength - Achieves Higher End of Long-Term Debt Target of $1.2 to $1.4 Billion Current Debt Maturity and Liquidity Sources Represent Increased Financial Strength $1,500 April 2017 Debt and Liquidity Sources Current Debt and Liquidity Sources $1,200 $900 $600 $300 *Revolver and AR securitization undrawn except for letters of credit ARS* ARS* Revolver* Term Loan 6.000% Bonds L+ 4.50% 6.000% Bonds TERM LOAN REDUCED BY $550 MILLION, RATE LOWERED, MATURITY EXTENDED $0 2018 2019 2020 2021 2022 2023 2024 Peabody Note: Current liquidity sources as of March 31, 2018. Current debt balances as of April 25, 2018. 6.375% Bonds 6.375% Bonds Term Loan L+ 2.75% 2025 22#23Invest Wisely - Default Position to Return Cash to Shareholders ● Particular emphasis on amount and timing of returns — Direct correlation between rate of return and shareholder value • Earned 21% ROIC in 2017, well above WACC of 10 - 11% Maintain financial strength Returns above cost of capital Reasonable payback period Core regions: PRB, ILB, seaborne met & thermal • Share repurchase program represents way Significant Tangible for Peabody to invest in synergies value for our shareholders company we know - - and like the best Peabody Note: ROIC of 21% reflects Peabody's ROIC post-emergence (2Q - 4Q 2017); ROIC equals Adjusted Net Operating Profit After Tax divided by Average Invested Capital Base. 23#24Return Cash to Shareholders - Cash Allocation Shifts from Debt Repayment to Returning Cash to Shareholders in 2018 $300 Cash Allocation ($ in millions) $200 $69 $107 Q3 2017 Q4 2017 $46 $239 YTD 2018 • Company repurchases 5.7 million shares in 2018 • Repurchases total $400 million, 8% of shares outstanding, since initiation. of buyback program - Peabody now has ~125.8 million total shares outstanding • Expanding share repurchase ■Discretionary Debt Repayment Cash Returned to Shareholders Peabody program to $1 billion Initiated and paid a dividend in first quarter Note: Cash to shareholders includes cash dividends and share repurchases through April 25, 2018. Percent of shares repurchased based on 137.3 million shares outstanding as of relisting. Peabody's board of directors will evaluate dividends on a quarterly basis, taking into consideration the company's cash flows and alternative means to create shareholder value. 24 24#25First Quarter 2018 Reflects Multiple Achievements • Increased volumes, revenues and Adjusted EBITDA over prior year • Improved total liquidity $409 million to $1.65 billion at quarter end • Generated record free cash flow of $573 million • Released $254 million of collateral • Simplified capital structure with conversion of preferred shares • Accelerated share buyback activities PROGRESS CONTINUES IN APRIL Expanded share repurchase program to $1.0 billion Reduced interest rate and extended maturity of term loan Achieved higher end of targeted long-term debt level • Initiated quarterly dividend Peabody Note: Adjusted EBITDA and free cash flow are non-GAAP metrics. Refer to the reconciliation to the nearest GAAP measures in the appendix. 25#26Second Quarter 2018 Expectations • Increase Australian thermal volumes sequentially as year progresses, lower unit costs • Reduce Australian metallurgical costs through improved operational performance • Improve Midwest cost performance on greater equipment reliability; Expect seasonally lower Q2 PRB volumes • Execute stated financial approach, including returning cash to shareholders. through upsized share buyback program and dividends Peabody Note: Peabody's board of directors will evaluate dividends on a quarterly basis, taking into consideration the company's cash flows and alternative means to create shareholder value. 26#27Peabody Outperforms S&P MidCap 400 on Multiple Investor Comps Peabody S&P 400 BTU vs. S&P 400 Operating Margin 17% 9% 84% Adjusted EBITDA Margin 26% 14% 88% Profit Margin 16% 6% 175% Return on Common Equity 22% 10% 126% Focused on Earning Improved Multiple With Strong Performance, Disciplined Capital Allocation, Healthy Returns Above Cost of Capital Peabody Note: Operating Margin, Adjusted EBITDA Margin, Profit Margin and Return on Common Equity are non-GAAP metrics. As presented on this slide, these metrics reflect the successor company's average results for the period April 2, 2017 through March 31, 2018 and the 2017 average for S&P MidCap 400. Refer to the reconciliation to the nearest GAAP measures in the appendix. While the company believes BTU qualifies for the S&P MidCap 400, Peabody is not currently a member of the index. Source: Bloomberg. 27#28Peabody: Integrated Approach Creates Maximum Value • The Peabody team delivered powerful achievements in 2017, and we're not about to stop • We are committed to outlining approach and then delivering • We have the right assets, financial strength, people and strategies to succeed • We are continuing to progress actions that will drive continued valuation uplifts throughout the commodity cycles Peabody NYSE: BTU PeabodyEnergy.com 28#29Appendix DELIVERING RESULTS GENERATING VALUE Peabody#302018 Guidance Targets Sales Volumes (Short Tons in millions) PRB 115 125 Capital Expenditures SG&A Expense $275 - $325 million ~$150 million ILB Western Total U.S. 18-19 13-14 146-158 Interest Expense Aus. Metallurgical ¹ Aus. Export Thermal² Aus. Domestic Thermal Total Australia 11-12 11.5-12.5 7-8 29.5-32.5 Cost Sensitivities4 $0.05 Decrease in A$ FX Rate $0.05 Increase in A$ FX Rate Fuel (+/- $10/barrel) U.S. Operations - Revenue per Ton Total U.S. $140 $148 million +~$75 million - ~$60 million +/- ~$23 million 2018 Priced Position (Avg. Price per Short Ton) $17.50 $18.50 PRB ILB $11.93 ~$42 Australia Export Thermal ~$76 U.S. Operations - Costs Per Ton PRB ILB $9.25 - $9.75 $31.50 $33.50 Total U.S. $13.50 - $14.50 Australia Operations - Costs per Ton (USD)³ Metallurgical Thermal Total Australia Peabody ~95% of Peabody's 2018 U.S. volumes are priced ~40% of Peabody's 2019 U.S. volumes are priced ~5.5 million short tons of Australia export thermal coal priced for 2018 $85-$95 $32 - $36 $52-$58 2019 Priced Position (Avg. Price per Short Ton) Australia Export Thermal ~$75 ~2 million short tons of Australia export thermal coal priced for 2019 30#312018 Guidance Targets 1 Metallurgical coal sales volumes may range from ~55%-65% PCI and ~35%-45% coking coal (including semi-hard and semi-soft coking coals). Approximately 30% of seaborne coking sales may be priced on a spot basis, with the remainder linked to an index. Approximately 30% of seaborne PCI sales may be priced on a spot basis, but the remainder linked to the quarterly LV PCI benchmark. The company also has exposure to approximately 2 million tons of metallurgical coal related to the Middlemount Mine, a 50/50 joint venture accounted for in (Income) Loss from Equity Affiliates. Peabody's North Goonyella Mine receives the PHCC index quoted price and the Coppabella Mine typically sets the LV PCI benchmark, with the remainder of products sold at discounts to these values based on coal qualities and properties. On a weighted-average basis across all metallurgical products, Peabody typically realizes approximately 85%-90% of the PHCC index quoted price for its coking products, and 85%-90% of the LV PCI benchmark price for its PCI products. 2 A portion of Peabody's seaborne thermal coal products sell at or above the Newcastle index, with the remainder sold at discounts relative to the Newcastle index based on coal qualities and properties. On a weighted-average basis across all seaborne thermal products, Peabody typically realizes approximately 90%- 95% of the Newcastle index price. 3 Assumes 2018 average A$ FX rate of $0.78. Cost ranges include sales-related cost, which will fluctuate based on realized prices. 4 Sensitivities reflect approximate impacts of changes in variables on financial performance. When realized, actual impacts may differ significantly. 5 As of March 31, 2018, Peabody had purchased average rate call options in aggregate notional amount of approximately AUD $1.1 billion to manage market price volatility associated with the Australian dollar with strike price levels ranging from $0.79 to $0.82 and settlement dates through December 2018. Sensitivities provided are relative to an assumed average A$ FX exchange rate of $0.78. Note 1: Peabody classifies its Australian Metallurgical or Thermal Mining segments based on the primary customer base and reserve type. A small portion of the coal mined by the Australian Metallurgical Mining segment is of a thermal grade and vice versa. Peabody may market some of its metallurgical coal products as a thermal product from time to time depending on industry conditions. Per ton metrics presented are non-GAAP measures. Due to the volatility and variability of certain items needed to reconcile these measures to their nearest GAAP measure, no reconciliation can be provided without unreasonable cost or effort. Note 2: A sensitivity to changes in seaborne pricing should consider Peabody's estimated split of PCI and coking coal products, the ratio of PLV PCI benchmark to PLV HCC index quoted price, the weighted average discounts across all products to the applicable PLV HCC index quoted price or PLV PCI benchmark or Newcastle index prices, in addition to impacts on sales-related costs in Australia, and applicable conversions between short tons and metric tonnes as necessary. Note 3: As of April 25, 2018, on a fully diluted basis, Peabody has approximately 128.8 million shares of common stock outstanding, including approximately 3.0 million shares underlying unvested equity awards under Peabody's long-term incentive plan. Peabody 31#32Historical Seaborne Pricing ($/Tonne) Time Period HCC - HCC - LV PCI - LV PCI - NEWC- Settlement Spot Settlement Spot Spot Q1 2018 $237 $228 $156.50 $149 $103 Q4 2017 $192 $205 $127 $126 $98 Q3 2017 $170 $189 $115/$127 $117 $93 Q2 2017 $194 $190 $135 $124 $80 Q1 2017 $285 $169 $180 $110 $82 Q4 2016 $200 $266 $133 $159 $94 Q3 2016 $93 $135 $75 $88 $66 Q2 2016 $84 $91 $73 $72 $52 Q1 2016 $81 $77 $69 $69 $51 Peabody Source: HCC and LV PCI spot prices per Platts; NEWC spot price per ICE Futures; Settlement prices per HIS Markit benchmark history. 32#33Reconciliation of Non-GAAP Measures 2018 Successor 2017 Predecessor Quarter Ended March 31 (In Millions) Tons Sold Powder River Basin Mining Operations Midwestern U.S. Mining Operations Western U.S. Mining Operations 32.4 31.0 4.7 4.5 3.7 3.4 Total U.S. Mining Operations 40.8 38.9 Australian Metallurgical Mining Operations 3.0 2.2 Australian Thermal Mining Operations 3.8 4.6 Total Australian Mining Operations 6.8 6.8 Trading and Brokerage Operations Total 0.7 0.4 48.3 46.1 Revenue Summary Powder River Basin Mining Operations Midwestern U.S. Mining Operations Western U.S. Mining Operations Total U.S. Mining Operations Australian Thermal Mining Operations Total Australian Mining Operations Trading and Brokerage Operations Other Total Peabody $389.3 $394.3 201.7 193.2 143.7 149.7 734.7 737.2 Australian Metallurgical Mining Operations 466.2 328.9 201.4 224.8 667.6 553.7 20.1 15.0 40.3 20.3 $1,462.7 $1,326.2 33#34Reconciliation of Non-GAAP Measures Reconciliation of Non-GAAP Financial Measures Income from Continuing Operations, Net of Income Taxes Depreciation, Depletion and Amortization Asset Retirement Obligation Expenses Asset Impairment Changes in Deferred Tax Asset Valuation Allowance and Amortization of Basis Difference Related to Equity Affiliates Interest Expense Interest Income Reorganization Items, Net Unrealized Gains on Economic Hedges Unrealized Losses on Non-Coal Trading Derivative Contracts Take-or-Pay Contract-Based Intangible Recognition Income Tax Provision Adjusted EBITDA (1) Net Cash Provided by Operating Activities Net Cash (Used In) Provided By Investing Activities Free Cash Flow (2) Peabody Note: Refer to definitions of Adjusted EBITDA and Free Cash Flow on following slide. 2018 Successor Quarter Ended March 31 (In Millions) 2017 Predecessor $208.3 169.6 $124.3 119.9 12.3 14.6 30.5 (7.6) (5.2) 36.3 32.9 (7.2) (2.7) (12.8) 41.4 (38.6) 1.8 (8.3) (16.6) 10.1 2.2 $363.9 $341.3 $579.7 $256.1 (6.4) 15.1 $573.3 $271.2 34#35Reconciliation of Non-GAAP Measures Adjusted EBITDA (1) Powder River Basin Mining Operations Midwestern U.S. Mining Operations $74.5 $91.7 31.2 50.0 Western U.S. Mining Operations 32.0 50.0 Total U.S. Mining Operations 137.7 191.7 Australian Metallurgical Mining Operations 166.4 109.6 Australian Thermal Mining Operations 61.6 75.6 Total Australian Mining Operations 228.0 185.2 Trading and Brokerage Resource Management Selling and Administrative Expenses Other Operating Costs, Net Corporate Hedging Results 1.2 8.8 20.8 2.9 (37.0) (36.3) 15.6 16.6 (2.4) (27.6) Adjusted EBITDA (1) $363.9 $341.3 Peabody Note: Refer to definitions of Adjusted EBITDA on following slide. 35#36Reconciliation of Non-GAAP Measures: Definitions 1 Adjusted EBITDA is a non-GAAP measure defined as income (loss) from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses, depreciation, depletion and amortization and reorganization items, net. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments' operating performance as displayed in the reconciliation. Adjusted EBITDA is used by management as one of the primary metrics to measure our operating performance. Management also believes non-GAAP performance measures are used by investors to measure our operating performance and lenders to measure our ability to incur and service debt. Adjusted EBITDA is not intended to serve as an alternative to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies. 2 Free Cash Flow is a non-GAAP measure defined as net cash provided by operating activities less net cash (used in) provided by investing activities. Free Cash Flow is used by management as a measure of our financial performance and our ability to generate excess cash flow from our business operations. Free Cash Flow is not intended to serve as an alternative to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies. Peabody 36#37Reconciliation of Non-GAAP Measures April 2 through December 31, 2017 Successor Quarter Ended April 2 through March 31, 2018 March 31, 2018 (In Millions) Reconciliation of Non-GAAP Financial Measures Income from Continuing Operations, Net of Income Taxes Interest Expense Loss on Early Debt Extinguishment Interest Income Net Periodic Benefit Costs, Excluding Service Cost Reorganization Items, Net Income Tax (Benefit) Provision Operating Profit (1) Depreciation, Depletion and Amortization Asset Retirement Obligation Expenses $713.1 $208.3 $921.4 119.7 36.3 156.0 20.9 20.9 (5.6) (7.2) (12.8) 21.7 4.5 26.2 (12.8) (12.8) (161.0) 10.1 (150.9) $708.8 $239.2 $948.0 521.6 169.6 691.2 41.2 12.3 53.5 Net Mark-to-Market Adjustment on Actuarially Determined Liabilities (45.2) (45.2) Changes in Deferred Tax Asset Valuation Allowance and Amortization of Basis Difference Related to Equity Affiliates (17.3) (7.6) (24.9) Gain on Disposal of Reclamation Liability (31.2) (31.2) Gain on Disposal of Burton Mine (52.2) (52.2) Break Fees Related to Terminated Asset Sales (28.0) (28.0) Unrealized Losses (Gains) on Economic Hedges 23.0 (38.6) (15.6) Unrealized Losses on Non-Coal Trading Derivative Contracts 1.5 1.8 3.3 Coal Inventory Revaluation Take-or-Pay Contract-Based Intangible Recognition Net Periodic Benefit Costs, Excluding Service Cost Adjusted EBITDA (2) 67.3 67.3 (22.5) (8.3) (30.8) (21.7) (4.5) (26.2) $1,145.3 $363.9 $1,509.2 Peabody Note: Refer to definition of metrics on the following slide. 37#38Reconciliation of Non-GAAP Measures Reconciliation of Non-GAAP Financial Measures Peabody Energy Corporation Stockholders' Equity Less: Series A Convertible Preferred Stock Common Equity (3) Revenues Operating Profit (1) Net Income Net Income Attributable to Common Stockholders Adjusted EBITDA (2) Operating Margin (4) Adjusted EBITDA Margin (5) Profit Margin (6) Return on Common Equity (7) Peabody Note: Refer to definition of metrics on the following slide. March 31, 2018 April 2, 2017 (In Millions) $3,081.0 $3,609.8 1,305.4 $1,775.6 $3,609.8 Successor April 2 through December 31, 2017 Quarter Ended March 31, 2018 (In Millions) April 2 through March 31, 2018 $4,252.6 $1,462.7 $5,715.3 708.8 239.2 948.0 693.3 207.0 900.3 498.6 106.6 605.2 1,145.3 363.9 1,509.2 38 17% 26% 16% 22%#39Reconciliation of Non-GAAP Measures: Definitions (1) Operating Profit is a non-GAAP measure defined as income (loss) from continuing operations before deducting net interest expense, income taxes, net periodic benefit costs, excluding service cost and reorganization items, net. Operating Profit is used by management as one of the primary metrics to measure our operating performance. Management also believes non-GAAP performance measures are used by investors to measure our operating performance and lenders to measure our ability to incur and service debt. (2) Adjusted EBITDA is a non-GAAP measure defined as income (loss) from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses, depreciation, depletion and amortization and reorganization items, net. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments' operating performance as displayed in the reconciliation. Adjusted EBITDA is used by management as one of the primary metrics to measure our operating performance. Management also believes non-GAAP performance measures are used by investors to measure our operating performance and lenders to measure our ability to incur and service debt. (3) Common Equity is a non-GAAP measure defined as total stockholders' equity less preferred stock. (4) Operating Margin is a non-GAAP measure defined as Operating Profit divided by revenues. Operating Margin is used by management as one of the metrics to measure our operating performance. (5) Adjusted EBITDA Margin is a non-GAAP measure defined as Adjusted EBITDA divided by revenues. Adjusted EBITDA Margin is used by management as one of the metrics to measure our operating performance. (6) Profit Margin is a non-GAAP measure defined as net income divided by revenues. Profit Margin is used by management as one of the metrics to measure our operating performance. (7) Return on Common Equity is a non-GAAP measure defined as net income attributable to common stockholders divided by average Common Equity. While management does not internally use Return on Common Equity as a means to measure performance, management believes it is comparable to return on invested capital, which management does use internally as a means to measure its ability to generate a return on invested capital. Note: The above metrics are not intended to serve as an alternative to U.S. GAAP measures of performance and may not be comparable to similarly titled measures presented by other companies. Peabody 39#40Middlemount Joint Venture Offers Economic Exposure to ~2 Million Met Tons Annually • Peabody owns 50% equity interest in Middlemount • Share of operations delivered 2.1 million tons in 2017 - - Mix of semi-hard coking coal, LV PCI Port capacity through Abbot Point, future capacity secured at DBCT • Earned 2017 Adjusted EBITDA of $43 million, reflecting Peabody's share of Middlemount's net income - Peabody collected ~$80 million of loan and other cash repayments in 2017 • Over 10 years of reserves at current production profile Middlemount Mine Peabody Note: Adjusted EBITDA is a non-GAAP metric. Refer to the reconciliation to the nearest GAAP measure in the appendix. All metrics reflect Peabody's 50% ownership share in Middlemount. 40#41Potential Opportunities for Metallurgical Development and Organic Growth in Bowen Basin Over Time Peabody North Burton West Burton Mungara North Goonyella Mulgrave Coopers Creek Burton Coppabella North Gundyer Wotonga Millennium Moorvale South Coppabella Oben Park Moorvale Yeerun Codrilla Codrilla South Amaroo Vermont East Codrilla South Extension Dalrymple Bay MacKay 7z Bowen Basin Middlemount Surface Mine UG Mine Mining Lease Mineral Development License Exploration Permit Coal ▲ Coal Port Rail 41#42Spotlight: North Antelope Rochelle World's Largest Coal Mine • Offers reliable source of supply to over 50 customers in 21 states, powering ~4.5% of total U.S. electricity generation Strategically positioned on rail joint line with multiple entry/exit points for simultaneous arrivals and departures • Benefits from prior reserve acquisitions and fleet upgrades, resulting in modest sustaining capital levels • Operates out of 7 - 10 pits of 60 - 80 feet thick coal seams, providing access to lowest-sulfur coal in North America • Advanced technology reduces costs, drives higher margins Peabody North Antelope Rochelle Mine 42#43Peabody's Financial Approach: Invest Wisely ● Moderate maintenance capex required across 3-year plan Includes lease buyouts that lowers opex • Life extension projects offer multiple benefits: - Improves met production profile Allows access to stratified Planned Capital Expenditures ($ in millions) $275 - $325 Major Projects $325 - $375 Australia life extension projects thermal reserves through Wambo JV with Glencore - Extends life of lowest-cost, premier Australia thermal mine • Anticipate average capex of ~$250 - $300 million over next three years Peabody Sustaining $150 - $200 2018 2019 2020 43#44Substantial Interest in BTU from Multiple Sectors of Capital Markets ⚫ February 2017 Targeted $1.5 billion debt offering upsized and heavily oversubscribed ⚫ April 2017 - - $1.3 billion in third-party U.S. bonding facilities on emergence - $250 million accounts receivable securitization program $1.5 billion in new equity raised ⚫ September 2017 - Repriced term loan, lowering interest rate 100 basis. points, providing ability to fully execute share buybacks • November 2017 - $270 million revolver put in place • December 2017 - $80 million upsize in revolver $2.2 billion increase in market capitalization since April 3 ⚫ January/February 2018 $226 million Australian surety bond initiated with insurers Peabody BANK LENDERS BONDHOLDERS EQUITY HOLDERS INSURERS 44 14#45Focused Engagement: Support for Highly Responsible Coal Mining and Use SUSTAINABLE ESSENTIAL ADVANCED Strong attention to operational excellence by committing to safe workplaces, maximizing resource recovery, improving environmental performance and restoring mined lands Initiatives to promote expanded access to reliable, low-cost electricity through partnerships, policy and engagement with key stakeholders Support for greater deployment of advanced coal technologies and carbon capture, utilization and storage technologies to further reduce emissions 'COAL DONE RIGHT' Peabody 45