PEABODY ENERGY CORP

Previous wording

Peabody is a leading producer of metallurgical and thermal coal. In 2025, Peabody sold 122.0 million tons of coal. February 2026 marked the start-up of the Centurion Mine in the Seaborne Metallurgical segment. As a result, the Company owned interests in 17 active coal mining operations located in the United States (U.S.) and Australia at March 31, 2026. Included in that count is Peabody’s 50% equity interest in Middlemount Coal Pty Ltd (Middlemount), which owns the Middlemount Mine in Queensland, Australia.

Current wording

Peabody is a leading producer of metallurgical and thermal coal. In 2025, Peabody sold 122.0 million tons of coal. The Company owned interests in 17 active coal mining operations located in the United States (U.S.) and Australia at June 30, 2026. Included in that count is Peabody’s 50% equity interest in Middlemount Coal Pty Ltd (Middlemount), which owns the Middlemount Mine in Queensland, Australia.

Previous wording

Within the global coal industry, supply and demand for its products and the supplies used for mining are being impacted by recent geopolitical events and changes to trade policy, including tariffs and customs regulations. As future developments related to geopolitical events and trade policy, including additional or retaliatory tariffs, delays in implementing previously announced changes or ongoing negotiations between countries, are unknown, the global coal industry data for the three months ended March 31, 2026 presented herein may not be indicative of their ultimate impacts.

Current wording

Within the global coal industry, supply and demand for its products and the supplies used for mining are being impacted by recent geopolitical events and changes to trade policy, including tariffs and customs regulations. As future developments related to geopolitical events and trade policy, including additional or retaliatory tariffs, delays in implementing previously announced changes or ongoing negotiations between countries, are unknown, the global coal industry data for the six months ended June 30, 2026 presented herein may not be indicative of their ultimate impacts.

Previous wording

In the U.S., overall electricity demand increased just under 1% year-over-year through the three months ended March 31, 2026. Through the first three months of 2026, electricity generation from thermal coal decreased year-over-year, driven by lower natural gas prices, stronger renewable generation and milder winter weather in coal-heavy markets in the U.S. Coal’s share of electricity generation decreased to approximately 16% for the three months ended March 31, 2026, while wind and solar’s combined generation share was at 20% and the share of natural gas generation remained stable at approximately 37%. U.S. coal inventories have increased slightly compared to the end of 2025 through March 31, 2026.

Current wording

In the U.S., overall electricity demand increased just under 1% year-over-year through the six months ended June 30, 2026. Through the first six months of 2026, electricity generation from thermal coal decreased year-over-year, driven by lower natural gas prices, stronger renewable generation and milder spring temperatures in coal-heavy markets in the U.S. Coal’s share of electricity generation decreased to approximately 14% for the six months ended June 30, 2026, while wind and solar’s combined generation share increased to 22% and the share of natural gas generation remained stable at approximately 37%. U.S. coal inventories have increased almost 10 million tons compared to the end of 2025 through June 30, 2026.

Previous wording

Arbitration Relating to Terminated Anglo American Acquisition

Current wording

Arbitration Relating to Terminated Anglo American plc (Anglo) Acquisition

Previous wording

On November 25, 2024, Peabody entered into definitive agreements (the Purchase Agreements) with Anglo American plc (Anglo), to acquire a portion of the assets and businesses associated with Anglo’s metallurgical coal portfolio in Australia, including Anglo’s interests in the Moranbah North and Grosvenor mines, the Moranbah South development project, the Capcoal complex, the Roper Creek mine and the Dawson complex (comprising the Dawson Main/Central operating mine, the Dawson South operating mine, the Dawson South Exploration project and the Theodore South exploration project, collectively, the Dawson Assets). The Company agreed to, following the prospective closing of the Anglo acquisition, sell the Dawson Assets to Pt Bukit Makmur Mandiri Utama or one of its subsidiaries (BUMA).

Current wording

On November 25, 2024, Peabody entered into definitive agreements (the Purchase Agreements) to acquire from Anglo certain assets and businesses associated with Anglo’s metallurgical coal portfolio in Australia (collectively, the Assets), including Anglo’s interests in the Moranbah North and Grosvenor mines, the Moranbah South development project, the Capcoal complex, the Roper Creek mine and the Dawson complex (comprising the Dawson Main/Central operating mine, the Dawson South operating mine, the Dawson South Exploration project and the Theodore South exploration project, collectively, the Dawson Assets). The Company agreed to, following the prospective closing of the Anglo acquisition, sell the Dawson Assets to Pt Bukit Makmur Mandiri Utama or one of its subsidiaries.

Previous wording

On August 19, 2025, Peabody terminated the Purchase Agreements. The termination of the Purchase Agreements followed Peabody’s prior delivery of a notice of a Material Adverse Change (MAC) as a result of an ignition event at the Moranbah North mine on March 31, 2025, which had led to the closure of the mine. See Note 13. “Commitments and Contingencies” to the accompanying unaudited condensed consolidated financial statements for further information.

Current wording

On August 19, 2025, Peabody terminated the Purchase Agreements. The termination of the Purchase Agreements followed Peabody’s prior delivery of a notice of a Material Adverse Change (MAC) as a result of an ignition event at the Moranbah North mine on March 31, 2025, which had led to the closure of the mine. Following Peabody’s termination of the Purchase Agreements, Anglo returned $29.0 million of the $75.0 million deposit previously paid by Peabody, and Peabody has demanded the outstanding $46.0 million of the deposit also be returned. See Note 13. “Commitments and Contingencies” to the accompanying unaudited condensed consolidated financial statements for further information.

Previous wording

On September 23, 2025, various subsidiaries of Anglo initiated International Chamber of Commerce arbitration proceedings in London, United Kingdom, against Peabody and certain of its affiliates. Anglo’s complaint alleges, among other things, that Peabody wrongfully terminated the Purchase Agreements and seeks, among other things, declarations that the ignition event at the Moranbah North mine did not constitute a MAC, as well as damages for losses in an unspecified amount, plus costs and interest. Peabody remains confident that a MAC occurred, and that it was entitled to terminate the Purchase Agreements.

Current wording

On September 23, 2025, various subsidiaries of Anglo initiated International Chamber of Commerce arbitration proceedings in London, United Kingdom, against Peabody and certain of its affiliates. At that time, Anglo’s complaint alleged, among other things, that Peabody wrongfully terminated the Purchase Agreements and sought, among other things, declarations that the ignition event at the Moranbah North mine did not constitute a MAC, as well as damages for losses in an unspecified amount, plus costs and interest. On June 5, 2026, Anglo filed its Statement of Claim, in which it purported to quantify, for the first time in the arbitration proceedings, the damages that it is demanding at approximately $755.0 million. This amount primarily consists of $628.4 million in claimed losses, representing what Anglo contends is the difference in value of the Assets between November 25, 2024 and August 19, 2025, with the remainder consisting of Anglo’s claimed additional costs and interest on such claimed losses and costs.

Previous wording

Potential Recovery of Rare Earth Elements (REEs)

Current wording

Potential Recovery of Rare Earth Elements (REE)

Previous wording

During the initial longwall commissioning, mechanical and electrical issues were encountered at the Centurion Mine. The issues were resolved, but the disruptions constrained cutting speeds which contributed to temporary challenges to roof conditions. The Company implemented a comprehensive response plan focused on proactive strata management, targeted equipment optimization and deployment of additional technical and operational resources. The Company anticipates completing commissioning and production ramp-up in the second quarter of 2026 and running at full longwall production rates during the second half of 2026.

Current wording

During the initial longwall commissioning, mechanical and electrical issues were encountered at the Centurion Mine. The issues were resolved, but the disruptions constrained cutting speeds which contributed to temporary challenges to roof conditions. The operating team has implemented effective processes to address face conditions while maintaining production momentum and is working through the remaining roof control issues. With operational constraints significantly reduced, Peabody's focus is on achieving targeted production rates.

Previous wording

Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025

Current wording

Three and Six Months Ended June 30, 2026 Compared to the Three and Six Months Ended June 30, 2025

Previous wording

Adjusted EBITDA for the three months ended March 31, 2026 reflected a year-over-year decrease of $61.5 million.

Current wording

Adjusted EBITDA for the three and six months ended June 30, 2026 reflected a year-over-year decrease of $69.3 million and $130.8 million, respectively.

Previous wording

Seaborne Thermal. Segment revenue decreased during the three months ended March 31, 2026 compared to the same period in the prior year due to unfavorable volume ($91.8 million) driven by reductions at the Wilpinjong Mine due to mine sequencing and the closure of the Wambo Underground Mine in September 2025, partially offset by favorable realized prices ($24.2 million).

Current wording

Seaborne Thermal. Segment revenue increased during the three months ended June 30, 2026 compared to the same period in the prior year due to favorable realized prices ($63.6 million), offset by unfavorable volume ($28.1 million) driven by reductions at the Wilpinjong Mine due to mine sequencing and the closure of the Wambo Underground Mine in September 2025. Segment revenue decreased during the six months ended June 30, 2026 compared to the same period in the prior year due to unfavorable volume, as previously described ($118.2 million), offset by favorable realized prices ($86.1 million).

Previous wording

Powder River Basin. Segment revenue increased during the three months ended March 31, 2026 compared to the same period in the prior year due to favorable volume ($22.6 million) driven by increased demand. The increase was offset by unfavorable realized prices ($8.7 million) which were driven by the impact of adjustments to cost pass-through contracts with certain customers resulting from the federal royalty rate reduction included in the One Big Beautiful Bill Act of 2025 (OBBBA).

Current wording

Powder River Basin. Segment revenue decreased during the three and six months ended June 30, 2026 compared to the same periods in the prior year due to unfavorable volume ($48.8 million and $26.2 million, respectively) resulting from decreased demand driven by mild weather in the U.S. and unfavorable realized prices ($3.1 million and $11.8 million, respectively) which were driven by the impact of adjustments to cost pass-through contracts with certain customers resulting from the federal royalty rate reduction included in the One Big Beautiful Bill Act of 2025 (OBBBA).

Previous wording

Other U.S. Thermal. Segment revenue increased during the three months ended March 31, 2026 compared to the same period in the prior year due to favorable volume ($10.3 million) driven by increased demand and favorable realized prices ($5.5 million).

Current wording

Other U.S. Thermal. Segment revenue increased during the three and six months ended June 30, 2026 compared to the same periods in the prior year due to favorable volume ($4.4 million and $14.4 million, respectively) driven by increased demand and favorable realized prices ($3.7 million and $9.5 million, respectively).

Previous wording

Corporate and Other. The increase in revenue during the three months ended March 31, 2026 compared to the same period in the prior year was primarily driven by higher results from trading activities.

Current wording

Corporate and Other. The increase in revenue during the three and six months ended June 30, 2026 compared to the same periods in the prior year was primarily driven by higher revenue from trading activities.

Previous wording

Seaborne Metallurgical. Segment Costs increased during the three months ended March 31, 2026 compared to the same period in the prior year due to higher costs for labor, repairs and outside services ($63.2 million) driven by challenging longwall commissioning conditions at the Centurion Mine and higher sales related costs ($15.0 million) resulting from increased volume (0.2 million tons) and higher realized pricing.

Current wording

Seaborne Metallurgical. Segment Costs increased during the three and six months ended June 30, 2026 compared to the same periods in the prior year due to higher costs for labor, repairs and outside services ($73.6 million and $136.8 million, respectively) driven by longwall commissioning activities at the Centurion Mine; higher sales related costs ($34.4 million and $49.4 million, respectively) resulting from increased volume (0.3 million tons and 0.5 million tons, respectively) and higher realized pricing; and increased commodities expense ($15.9 million and $15.7 million, respectively) which was primarily driven by higher fuel pricing.

Previous wording

Powder River Basin. Segment Costs increased during the three months ended March 31, 2026 compared to the same period in the prior year due to higher costs for labor, repairs and outside services ($22.6 million) as the result of higher volume (1.6 million tons) and planned equipment outages and higher costs for commodities ($12.2 million). These increases were offset by lower sales related costs ($11.5 million) which were largely driven by the federal royalty rate reduction on coal production included in the OBBBA.

Current wording

Powder River Basin. Segment Costs decreased during the three months ended June 30, 2026 compared to the same period in the prior year due to lower sales related costs ($25.3 million) which were largely driven by the federal royalty rate reduction on coal production included in the OBBBA and lower volume (3.6 million tons), offset by increased commodities expense ($17.0 million) driven by higher fuel pricing and increased leasing expense ($3.9 million). Segment Costs increased during the six months ended June 30, 2026 compared to the same period in the prior year due to increased commodities expense ($29.2 million) driven by higher fuel pricing; higher costs for labor, repairs and outside services ($23.3 million) as the result of planned equipment outages and increased in-pit inventory; and increased leasing expense ($6.5 million). These increases were offset by lower sales related costs ($36.8 million) which were largely driven by the federal royalty rate reduction on coal production included in the OBBBA and lower volume (2.0 million tons).

Previous wording

Corporate and Other. The increase to Segment Costs during the three months ended March 31, 2026 compared to the same period in the prior year was primarily driven by lower net periodic benefit credit, excluding service cost due to the final amortization in the prior year of a previously established prior service credit ($7.0 million).

Current wording

Corporate and Other. The increase to Segment Costs during the three and six months ended June 30, 2026 compared to the same periods in the prior year was primarily driven by higher expenses related to trading and brokerage activities ($16.4 million and $23.4 million, respectively), the unfavorable remeasurement of foreign currency ($15.1 million and $8.5 million, respectively) and lower net periodic benefit credit, excluding service cost due to the final amortization in the prior year of a previously established prior service credit ($7.1 million and $14.1 million, respectively).

Previous wording

Seaborne Thermal. Segment Adjusted EBITDA decreased during the three months ended March 31, 2026 compared to the same period in the prior year due to unfavorable volume ($30.8 million), unfavorable operational costs at the Wilpinjong Mine ($22.8 million) driven by mine sequencing and the unfavorable impact of higher foreign exchange rates on expenses ($10.2 million). These decreases were offset by higher realized prices net of sales sensitive costs ($31.5 million).

Current wording

Seaborne Metallurgical. Segment Adjusted EBITDA decreased during the three and six months ended June 30, 2026 compared to the same periods in the prior year due to unfavorable production costs ($61.4 million and $102.3 million, respectively) primarily driven by longwall commissioning activities at the Centurion Mine, the unfavorable impact of higher foreign exchange rates on expenses ($16.4 million and $28.6 million, respectively) and higher commodities expense as described above. These decreases were offset by higher realized prices net of sales sensitive costs ($54.0 million and $69.6 million, respectively) and favorable volume ($26.3 million and $41.5 million, respectively).

Previous wording

Powder River Basin. Segment Adjusted EBITDA decreased for the three months ended March 31, 2026 compared to the same period in the prior year due to higher costs for labor, repairs and outside services and commodities as described above, offset by favorable volume ($12.5 million) and lower sales related costs as described above.

Current wording

Powder River Basin. Segment Adjusted EBITDA decreased for the three and six months ended June 30, 2026 compared to the same periods in the prior year due to unfavorable volume ($28.0 million and $14.8 million, respectively), higher commodity pricing and usage as described above, increased in-pit inventory as the workforce focused on preparatory efforts in light of reduced customer demand ($11.4 million and $14.9 million, respectively) and higher leasing expense and costs for labor, repairs and outside services as described above. These decreases were offset by lower sales related costs as described above.

Previous wording

Other U.S. Thermal. Segment Adjusted EBITDA increased during the three months ended March 31, 2026 compared to the same period in the prior year primarily due to higher realized prices net of sales sensitive costs ($4.1 million) and favorable volume ($2.4 million), offset by increased commodity pricing and usage ($3.4 million).

Current wording

Other U.S. Thermal. Segment Adjusted EBITDA increased during the three and six months ended June 30, 2026 compared to the same periods in the prior year primarily due to lower costs for repairs and outside services as described above and favorable volume ($10.4 million and $16.5 million, respectively), offset by higher commodity pricing and usage as described above.

Previous wording

Corporate and Other Adjusted EBITDA increased during the three months ended March 31, 2026 compared to the same period in the prior year due to favorable variances in Middlemount’s results driven by higher sales pricing and higher gains on equipment and land sales ($6.5 million). These increases were offset by higher selling and administrative expenses. The decrease in other items was driven by lower net periodic benefit credit, excluding service cost, as described above ($7.0 million), offset by the favorable remeasurement of foreign currency denominated monetary assets, substantially comprised of Australian dollar denominated restricted cash and cash collateral ($6.5 million).

Current wording

Corporate and Other Adjusted EBITDA decreased during the three months ended June 30, 2026 compared to the same period in the prior year due to unfavorable variances in Middlemount’s results driven by lower production and higher fuel costs, partially offset by higher sales pricing; and lower gains on equipment and land sales ($10.4 million). The decrease in other items was driven by unfavorable remeasurement of foreign currency denominated monetary assets, substantially comprised of Australian dollar denominated restricted cash and cash collateral ($15.1 million) and lower net periodic benefit credit, excluding service cost, as described above ($7.1 million).

Previous wording

Depreciation, depletion and amortization expense increased during the three months ended March 31, 2026 compared to the same period in the prior year primarily due to increased depreciation and amortization resulting from shortened mine lives. The decrease in the weighted-average depletion rate per ton for the Seaborne Thermal segment during the three months ended March 31, 2026 compared to the same period in the prior year reflects the increased quantity of proven and probable coal reserves resulting from the conversion of coal resources to proven and probable reserves. The increase in the weighted-average depletion rate per ton for the Seaborne Metallurgical segment during the three months ended March 31, 2026 compared to the same period in the prior year reflects the impact of volume and mix variances across the segment.

Current wording

Depreciation, depletion and amortization expense increased during the three and six months ended June 30, 2026 compared to the same periods in the prior year primarily due to increased depreciation and amortization resulting from shortened mine lives. The decrease in the weighted-average depletion rate per ton for the Seaborne Thermal segment during the three and six months ended June 30, 2026 compared to the same periods in the prior year reflects the increased quantity of proven and probable coal reserves at the Wilpinjong Mine resulting from the conversion of coal resources to proven and probable reserves. The increase in the weighted-average depletion rate per ton for the Seaborne Metallurgical segment during the three and six months ended June 30, 2026 compared to the same periods in the prior year reflects the impact of volume and mix variances across the segment. The decrease in the weighted-average depletion rate per ton for the Other U.S. Thermal segment during the three and six months ended June 30, 2026 compared to the same periods in the prior year reflects the impact of volume and mix variances across the segment.

Previous wording

Interest Income. The decrease in income during the three months ended March 31, 2026 compared to the same period in the prior year was driven by lower average cash balances during the current period.

Current wording

Interest Income. The decrease in income during the three and six months ended June 30, 2026 compared to the same periods in the prior year was driven by lower average cash balances during the current period.

Previous wording

Unrealized Gains on Foreign Currency Option Contracts. Unrealized gains primarily relate to mark-to-market activity on foreign currency option contracts. For additional information, refer to Note 6. “Derivatives and Fair Value Measurements” to the accompanying unaudited condensed consolidated financial statements.

Current wording

Unrealized (Losses) Gains on Foreign Currency Option Contracts. Unrealized (losses) gains primarily relate to mark-to-market activity on foreign currency option contracts. For additional information, refer to Note 6. “Derivatives and Fair Value Measurements” to the accompanying unaudited condensed consolidated financial statements.

Previous wording

Income Tax Benefit (Provision). The decrease in the income tax benefit (provision) during the three months ended March 31, 2026 compared to the same period in the prior year was primarily due to lower expected pretax income. Refer to Note 8. “Income Taxes” to the accompanying unaudited condensed consolidated financial statements for additional information.

Current wording

Income Tax Benefit (Provision). The increase in the income tax benefit during the three months ended June 30, 2026 compared to the same period in the prior year was primarily due to lower expected pretax income. The increase in the income tax benefit recorded during the six months ended June 30, 2026 compared to the same period in the prior year was driven by expected pretax losses in the current year compared to expected pretax income in the prior year. Refer to Note 8. “Income Taxes” to the accompanying unaudited condensed consolidated financial statements for additional information.

Previous wording

Net Income Attributable to Noncontrolling Interests. The increase in net income attributable to noncontrolling interests during the three months ended March 31, 2026 compared to the same period in the prior year was primarily driven by income associated with Peabody’s majority-owned Wambo operations in which there is an outside non-controlling interest.

Current wording

Net Income Attributable to Noncontrolling Interests. The increase in net income attributable to noncontrolling interests during the three and six months ended June 30, 2026 compared to the same periods in the prior year was primarily driven by income associated with Peabody’s majority-owned Wambo operations in which there is an outside non-controlling interest.

Previous wording

Diluted EPS is commensurate with the changes in results from continuing operations and discontinued operations during that period. Diluted EPS reflects weighted average diluted common shares outstanding of 122.0 million and 138.7 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Diluted EPS is commensurate with the changes in results from continuing operations and discontinued operations during that period. Diluted EPS reflects weighted average diluted common shares outstanding of 122.0 million and 121.7 million for the three months ended June 30, 2026 and 2025, respectively, and 122.0 million and 122.3 million for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

Mercury and Air Toxic Standards (MATS). In 2012, the U.S. Environmental Protection Agency (EPA) published the final MATS rule, which revised the New Source Performance Standards for nitrogen oxide, sulfur dioxide and fine particulate matter (PM) for new and modified coal-fueled electricity generating plants, and imposed maximum achievable control technology (MACT) emission limits on hazardous air pollutants (HAPs) from new and existing coal-fueled and oil-fueled electric generating plants. MACT standards limit emissions of mercury, acid gas HAPs, non-mercury HAP metals and organic HAPs.

Current wording

Mercury and Air Toxic Standards (MATS). In 2012, the EPA published the final MATS rule, which revised the New Source Performance Standards for nitrogen oxide, sulfur dioxide and fine particulate matter (PM) for new and modified coal-fueled electricity generating plants, and imposed maximum achievable control technology (MACT) emission limits on hazardous air pollutants (HAPs) from new and existing coal-fueled and oil-fueled electric generating plants. MACT standards limit emissions of mercury, acid gas HAPs, non-mercury HAP metals and organic HAPs.

Previous wording

On March 6, 2023, the EPA issued a final rule which reaffirmed its determination to regulate coal- and oil-fired electric generating units (EGUs) under Clean Air Act section 112, including the regulation of HAPs from EGUs after considering cost. On April 24, 2023, the EPA proposed to amend the 2012 MATS rule and require an additional two-thirds reduction in the filterable PM emission of non-mercury HAP metals from existing coal-fired power plants and to reduce the mercury standard for lignite plants by 70%. On May 7, 2024, the EPA finalized a MATS rule which significantly tightened the filterable PM emissions limit for existing coal-fired EGU’s, lowering the standard from 0.030 lb/MMBtu to 0.010 lb/MMBtu for all coal-fired power plants. This rule was challenged in the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) in North Dakota v. EPA (D.C. Cir., No. 24-1119). The EPA proposed on June 17, 2025 to repeal parts of the final 2024 MATS rule regarding filterable PM standards and revise the mercury standard for existing lignite-fired EGUs. This rule was finalized on February 24, 2026 (91 Fed. Reg. 9088) and became effective on April 27, 2026.

Current wording

On March 6, 2023, the EPA issued a final rule which reaffirmed its determination to regulate coal- and oil-fired EGUs under CAA section 112, including the regulation of HAPs from EGUs after considering cost. On May 7, 2024, the EPA finalized a MATS rule which significantly tightened the filterable PM emissions limit for existing coal-fired EGU’s, lowering the standard from 0.030 lb/MMBtu to 0.010 lb/MMBtu for all coal-fired power plants and lowered the mercury emission standard for lignite-fired EGUs. The EPA, however, subsequently repealed both the lower filterable PM emission limits and the lower mercury standards for lignite plants. 91. Fed. Reg 9088 (February 24, 2026). This rule became effective on April 27, 2026. The rule has been challenged in the U.S. Court of Appeals for the D.C. Circuit. Air Alliance Houston v. EPA, No. 26-1070 (and consolidated case) (D.C. Cir. filed March 30, 2026).

Previous wording

Clean Water Act (CWA) Water Quality Certification Rule. The EPA issued a final rule in 2020 that would have limited state and tribal regulators’ certification authority under CWA Section 401 by allowing the EPA to certify projects over state or tribal regulator objections in some circumstances. On September 27, 2023, the EPA finalized a superseding rule that would expand state and tribal regulators’ authority to review activities that require federal permits or licenses and to impose conditions they believe are necessary to ensure compliance with water quality requirements. That rule took effect on November 27, 2023. Challenges to the 2023 rule remain pending in the U.S. District Court for the Western District of Louisiana. On January 15, 2026, the EPA published proposed revisions to the 2023 rule in the Federal Register, and the EPA announced that it planned to propose and finalize changes later in 2026.

Current wording

Clean Water Act (CWA) Water Quality Certification Rule. The EPA issued a final rule in 2020 that would have limited state and tribal regulators’ certification authority under CWA Section 401 by allowing the EPA to certify projects over state or tribal regulator objections in some circumstances. On September 27, 2023, the EPA finalized a superseding rule that would expand state and tribal regulators’ authority to review activities that require federal permits or licenses and to impose conditions they believe are necessary to ensure compliance with water quality requirements. That rule took effect on November 27, 2023. Challenges to the 2023 rule remain pending in the U.S. District Court for the Western District of Louisiana. On January 15, 2026, the EPA published proposed revisions to the 2023 rule in the Federal Register, and the EPA announced that it planned to finalize changes later in 2026.

Previous wording

Effluent Limitations Guidelines for the Steam Electric Power Generating Industry. In 2015, the EPA published a final rule setting requirements for wastewater discharge from EGUs. In 2020, the EPA finalized revisions to certain requirements in the 2015 rule. On May 9, 2024, the EPA published a final rule that would have established more stringent standards for flue gas desulfurization wastewater, bottom ash transport water, combustion residual leachate and legacy wastewater discharged from certain surface impoundments. The final revised effluent limitations guidelines would have significantly increased costs for many coal-fueled steam electric power plants. In addition, the finalized final rule allowed EGUs that commit to ceasing coal combustion by December 31, 2034, to comply with less stringent wastewater discharge requirements during the interim. The final rule remains subject to numerous legal challenges that have been consolidated in the U.S. Court of Appeals for the Eighth Circuit (Eighth Circuit). If the Eighth Circuit affirms the final rule, it could influence fuel switching or additional coal generating unit retirements by the end of 2034. On December 31, 2025, the EPA published a final Deadline Extensions Rule that extends seven compliance deadlines in the 2024 rule. The EPA is allowing EGUs six additional years (until December 31, 2031) to determine whether to submit a notice of planned participation for the permanent cessation of coal combustion. The EPA further extended the deadlines by five years (to December 31, 2034) for direct discharging EGUs to comply with zero-discharge limitations for flue gas desulfurization wastewater, bottom ash transport water and combustion residual leachate. Finally, the EPA is allowing EGUs that discharge to wastewater treatment plants an additional year-and-a-half to seven-and-a-half years to comply with zero-discharge limitations for those same wastestreams. The EPA also issued a No Action Assurance memorandum announcing it will not pursue enforcement actions for certain permit violations by EGUs not yet in compliance with permit requirements related to the 2020 and 2024 rules, if those EGUs satisfy certain conditions. In parallel, the EPA announced that it plans to propose a Reconsideration Rule in 2026 to revise some of the limitations and standards in the 2024 rule.

Current wording

Effluent Limitations Guidelines for the Steam Electric Power Generating Industry. In 2015, the EPA published a final rule setting requirements for wastewater discharge from EGUs. In 2020, the EPA finalized revisions to certain requirements in the 2015 rule. On May 9, 2024, the EPA published a final rule that would have established more stringent standards for flue gas desulfurization wastewater, bottom ash transport water, combustion residual leachate and legacy wastewater discharged from certain surface impoundments. The final revised effluent limitations guidelines would have significantly increased costs for many coal-fueled steam electric power plants. In addition, the finalized final rule allowed EGUs that commit to ceasing coal combustion by December 31, 2034, to comply with less stringent wastewater discharge requirements during the interim. The final rule remains subject to numerous legal challenges that have been consolidated in the U.S. Court of Appeals for the Eighth Circuit (Eighth Circuit); due to the reconsideration process currently ongoing, however (see below), the proceedings are currently being held in abeyance. If the Eighth Circuit affirms the final rule, it could influence fuel switching or additional coal generating unit retirements by the end of 2034. On December 31, 2025, the EPA published a final Deadline Extensions Rule that extends seven compliance deadlines in the 2024 rule. The EPA is allowing EGUs six additional years (until December 31, 2031) to determine whether to submit a notice of planned participation for the permanent cessation of coal combustion. The EPA further extended the deadlines by five years (to December 31, 2034) for direct discharging EGUs to comply with zero-discharge limitations for flue gas desulfurization wastewater, bottom ash transport water and combustion residual leachate. Finally, the EPA is allowing EGUs that discharge to wastewater treatment plants an additional year-and-a-half to seven-and-a-half years to comply with zero-discharge limitations for those same wastestreams. The Deadline Extensions Rule has been challenged by multiple parties, with the litigation consolidated in the U.S. Court of Appeals for the Second Circuit. A motion to transfer the consolidated petitions to the Eighth Circuit is pending. If the Deadline Extensions Rule is vacated, the 2024 rule’s deadlines could become operative again. The EPA also issued a No Action Assurance memorandum announcing it will not pursue enforcement actions for certain permit violations by EGUs not yet in compliance with permit requirements related to the 2020 and 2024 rules, if those EGUs satisfy certain conditions. On May 18, 2026, the EPA published a proposed rule to clarify applicability of unmanaged combustion residual leachate limitations. 91 Fed. Reg. 28487 (May 18, 2026).

Previous wording

The Company’s primary source of cash is proceeds from the sale of its coal production to customers. The Company has also generated cash from the sale of non-strategic assets, including coal reserves, coal resources and surface lands, and, from time to time, borrowings under its credit facilities and the issuance of securities. The Company’s primary uses of cash include the cash costs of coal production, capital expenditures, coal reserve lease and royalty payments, debt service costs, finance and operating lease payments, early debt retirements, postretirement plans, take-or-pay obligations, post-mining reclamation obligations, collateral requirements, dividends, share repurchases and selling and administrative expenses.

Current wording

The Company’s primary source of cash is proceeds from the sale of its coal production to customers. The Company has also generated cash from the sale of non-strategic assets, including coal reserves, coal resources and surface lands, the return of collateral and, from time to time, borrowings under its credit facilities and the issuance of securities. The Company’s primary uses of cash include the cash costs of coal production, capital expenditures, coal reserve lease and royalty payments, debt service costs, finance and operating lease payments, early debt retirements, postretirement plans, take-or-pay obligations, post-mining reclamation obligations, collateral requirements, dividends, share repurchases and selling and administrative expenses.

Previous wording

As of March 31, 2026, the Company’s cash and cash equivalents balances totaled $492.5 million, including approximately $353 million held by U.S. subsidiaries, approximately $129 million held by Australian subsidiaries and the remainder held by other foreign subsidiaries in accounts predominantly domiciled in the U.S. A significant majority of the cash held by the Company’s foreign subsidiaries is denominated in U.S. dollars. This cash is generally used to support non-U.S. liquidity needs, including capital and operating expenditures in Australia and payment of the foreign subsidiaries’ share of certain U.S. corporate expenditures. From time to time, the Company may repatriate profits from its foreign subsidiaries to the U.S. in the form of intercompany dividends. During the three months ended March 31, 2026, no profits from foreign subsidiaries were repatriated. If foreign-held cash is repatriated in the future, the Company does not expect restrictions or potential taxes will have a material effect to its near-term liquidity.

Current wording

As of June 30, 2026, the Company’s cash and cash equivalents balances totaled $526.3 million, including approximately $420 million held by Australian subsidiaries, approximately $100 million held by U.S. subsidiaries and the remainder held by other foreign subsidiaries in accounts predominantly domiciled in the U.S. A significant majority of the cash held by the Company’s foreign subsidiaries is denominated in U.S. dollars. This cash is generally used to support non-U.S. liquidity needs, including capital and operating expenditures in Australia and payment of the foreign subsidiaries’ share of certain U.S. corporate expenditures. From time to time, the Company may repatriate profits from its foreign subsidiaries to the U.S. in the form of intercompany dividends. During the six months ended June 30, 2026, no profits from foreign subsidiaries were repatriated. If foreign-held cash is repatriated in the future, the Company does not expect restrictions or potential taxes will have a material effect to its near-term liquidity.

Previous wording

The Company’s available liquidity decreased from $942.1 million as of December 31, 2025 to $868.2 million as of March 31, 2026. Available liquidity was comprised of the following:

Current wording

The Company’s available liquidity increased from $942.1 million as of December 31, 2025 to $959.1 million as of June 30, 2026. Available liquidity was comprised of the following:

Previous wording

The Company paid dividends of $9.2 million during the three months ended March 31, 2026.

Current wording

The Company paid dividends of $18.3 million during the six months ended June 30, 2026.

Previous wording

In February 2022, the Company entered into an agreement which provides up to $250.0 million of capacity for irrevocable standby letters of credit, primarily to support reclamation bonding requirements. Outstanding letters of credit bear a fixed fee in the amount of 0.75% per annum. The Company receives a variable deposit rate on the amount of cash collateral posted in support of letters of credit. The agreement was amended on November 3, 2025, to (i) extend the expiration date to December 31, 2030 and (ii) reduce the required minimum cash collateral amount to 102% of the aggregate amount of letters of credit outstanding under the agreement, provided that in the event the Company’s credit rating falls below certain thresholds, the minimum collateral amount shall increase to 103%. At March 31, 2026, letters of credit of $78.1 million were outstanding under the agreement.

Current wording

In February 2022, the Company entered into an agreement which provides up to $250.0 million of capacity for irrevocable standby letters of credit, primarily to support reclamation bonding requirements. Outstanding letters of credit bear a fixed fee in the amount of 0.75% per annum. The Company receives a variable deposit rate on the amount of cash collateral posted in support of letters of credit. The agreement was amended on November 3, 2025, to (i) extend the expiration date to December 31, 2030 and (ii) reduce the required minimum cash collateral amount to 102% of the aggregate amount of letters of credit outstanding under the agreement, provided that in the event the Company’s credit rating falls below certain thresholds, the minimum collateral amount shall increase to 103%. At June 30, 2026, letters of credit of $77.9 million were outstanding under the agreement.

Previous wording

In December 2023, the Company established cash-backed bank guarantee facilities, primarily to support Australian reclamation bonding requirements. At March 31, 2026, guarantees of $218.5 million were issued for which the Company receives a variable deposit rate on the amount of cash collateral posted in support of the facilities, which mature at various dates between 2026 and 2030.

Current wording

In December 2023, the Company established cash-backed bank guarantee facilities, primarily to support Australian reclamation bonding requirements. During the second quarter of 2026, the Australian Surety Bond Facilities, as described above, were established, which reduced the utilization of the cash-backed bank guarantee facilities during the three months ended June 30, 2026. At June 30, 2026, guarantees of $11.8 million were issued for which the Company receives a variable deposit rate on the amount of cash collateral posted in support of the facilities, which mature at various dates between 2026 and 2030.

Previous wording

The revolving commitments and any related loans, if applicable (any such loans, the Revolving Loans), established by the 2024 Credit Agreement terminate or mature, as applicable, on January 18, 2028, subject to certain conditions relating to the Company’s outstanding 2028 Convertible Notes. The Revolving Loans bear interest at a secured overnight financing rate plus an applicable margin ranging from 3.50% to 4.25%, depending on the Company’s total net leverage ratio (as defined under the 2024 Credit Agreement) or a base rate plus an applicable margin ranging from 2.50% to 3.25%, at the Company’s option. Letters of credit issued under the 2024 Credit Agreement incur a combined fee equal to an applicable margin ranging from 3.50% to 4.25% plus a fronting fee equal to 0.125% per annum. Unused capacity under the 2024 Credit Agreement bears a commitment fee of 0.50% per annum.

Current wording

The Company established a revolving credit facility by entering into a credit agreement, dated as of January 18, 2024, as amended, (the Credit Agreement), by and among the Company, as borrower, certain subsidiaries of the Company party thereto, PNC Bank, National Association, as administrative agent, and the lenders party thereto. On June 9, 2026, the Company amended the Credit Agreement to, among other things, permit the Australian Surety Bond Facilities. On June 30, 2026, the Company further amended the Credit Agreement to, among other things, (i) increase the revolving commitments under the Credit Agreement from an aggregate principal amount equal to $320.0 million to an aggregate principal amount equal to $400.0 million; (ii) extend the maturity date of the revolving commitments and any related loans (any such loans, the Revolving Loans) from January 18, 2028 to June 30, 2030; and (iii) decrease the interest rate applicable to the Revolving Loans from a rate equal to a secured overnight financing rate (SOFR) plus an applicable margin ranging from 3.50% to 4.25%, depending on the Company’s total net leverage ratio (as defined under the Credit Agreement) or a base rate plus an applicable margin ranging from 2.50% to 3.25%, at the Company’s option, to a rate equal to SOFR plus an applicable margin ranging from 3.25% to 4.00%, depending on the Company’s total net leverage ratio or a base rate plus an applicable margin ranging from 2.25% to 3.00%, at the Company’s option. After the June 30, 2026 amendment, letters of credit issued under the Credit Agreement incur a combined fee equal to an applicable margin ranging from 3.25% to 4.00% plus a fronting fee equal to 0.125% per annum. Prior to the amendment, the combined fee was equal to an applicable margin ranging from 3.50% to 4.25% plus a fronting fee equal to 0.125% per annum. Unused capacity under the Credit Agreement bears a commitment fee of 0.50% per annum.

Previous wording

As of March 31, 2026, the 2024 Credit Agreement had only been utilized for letters of credit, including $49.2 million outstanding as of March 31, 2026. These letters of credit support the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees as further described in Note 12. “Financial Instruments and Other Guarantees.” Availability under the 2024 Credit Agreement was $270.8 million at March 31, 2026.

Current wording

During the second quarter of 2026, the Company borrowed and repaid $110.0 million under the revolving credit facility. At June 30, 2026, the Credit Agreement was only utilized for letters of credit of $58.2 million. These letters of credit support the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees as further described in Note 12. “Financial Instruments and Other Guarantees.” Availability under the revolving credit facility was $341.8 million at June 30, 2026.