Barclays 2012 CEO Energy/Power Conference - Peabody Energy

Peabody Focused onStrengthening the Balance Sheet● Continued focus ondeleveraging– Debt-to-capital at 52%– Repurchased $242 million ofbonds in second quarter– No significant maturities until 2015– Best coal company credit rating● Significant liquidity of$1.9 billion at June 30● Capital spending discipline– Further reduced target capex to $1.0 billion – $1.1 billion for 2012– Low maintenance capex needs of $1.25 – $1.75 per ton605040302057Total Debt-to-Capital %5247423755522006* 2007 2008 2009 2010 2011 Q22012*Ratio reflects post-Excel acquisition. YTD reflects results through June 30, 2012. 31