U.S. Coal Demand and Peabody Strategic Overview
U.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
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