Supplemental Guarantor/Non-Guarantor Financial Information

In accordance with the indentures governing the 7.375% Senior Notes due November 2016, the 6.00% Senior Notes due November 2018, the 6.50% Senior Notes due September 2020, the 6.25% Senior Notes due November 2021 and the 7.875% Senior Notes due November 2026 (collectively the Senior Notes), certain wholly owned U.S. subsidiaries of the Company have fully and unconditionally guaranteed the Senior Notes, on a joint and several basis. Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management believes that such information is not material to the holders of the Senior Notes. The following historical financial statement information is provided for the Guarantor/Non-Guarantor Subsidiaries.

Unaudited Supplemental Condensed Consolidating Statements of Operations



	Three Months Ended March 31, 2013
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(Dollars in millions)
Total revenues	$	—		$	1,014.6		$	796.2		$	(62.8	)	$	1,748.0
Costs and expenses
Operating costs and expenses	(91.7		)	700.9			843.0			(62.8		)	1,389.4
Depreciation, depletion and amortization	—			79.6			91.1			—			170.7
Asset retirement obligation expenses	—			11.6			7.4			—			19.0
Selling and administrative expenses	9.2			47.4			8.5			—			65.1
Other operating (income) loss:
Net (gain) loss on disposal or exchange of assets	—			(2.8		)	0.2			—			(2.6		)
Loss from equity affiliates and investment in subsidiaries	84.8			3.9			13.7			(84.8		)	17.6
Interest expense	101.9			2.3			110.5			(113.4		)	101.3
Interest income	(68.1		)	(34.9		)	(16.3		)	113.4			(5.9		)
Unrealized (gain) loss on derivatives	—			(41.0		)	41.0			—			—
(Loss) income from continuing operations before income taxes	(36.1		)	247.6			(302.9		)	84.8			(6.6		)
Income tax (benefit) provision	(15.3		)	107.9			(88.9		)	—			3.7
(Loss) income from continuing operations, net of income taxes	(20.8		)	139.7			(214.0		)	84.8			(10.3		)
Loss from discontinued operations, net of income taxes	(2.6		)	(1.5		)	(5.0		)	—			(9.1		)
Net (loss) income	(23.4		)	138.2			(219.0		)	84.8			(19.4		)
Less: Net income attributable to noncontrolling interests	—			—			4.0			—			4.0
Net (loss) income attributable to common stockholders	$	(23.4	)	$	138.2		$	(223.0	)	$	84.8		$	(23.4	)

Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income



	Three Months Ended March 31, 2013
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
	(Dollars in millions)
Net (loss) income	$	(23.4	)	$	138.2		$	(219.0	)	$	84.8	$	(19.4	)
Other comprehensive income (loss), net of income taxes	0.6			(22.5		)	(14.2		)	36.7		0.6
Comprehensive (loss) income	(22.8		)	115.7			(233.2		)	121.5		(18.8		)
Less: Comprehensive income attributable to noncontrolling interests	—			—			4.0			—		4.0
Comprehensive (loss) income attributable to common stockholders	$	(22.8	)	$	115.7		$	(237.2	)	$	121.5	$	(22.8	)

Unaudited Supplemental Condensed Consolidating Statements of Operations



	Three Months Ended March 31, 2012
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(Dollars in millions)
Total revenues	$	—		$	1,131.3		$	918.6		$	(29.2	)	$	2,020.7
Costs and expenses
Operating costs and expenses	(124.4		)	835.6			739.8			(29.2		)	1,421.8
Depreciation, depletion and amortization	—			72.7			70.2			—			142.9
Asset retirement obligation expenses	—			10.7			4.3			—			15.0
Selling and administrative expenses	10.1			51.9			9.0			—			71.0
Other operating (income) loss:
Net gain on disposal or exchange of assets	—			(1.9		)	(2.1		)	—			(4.0		)
(Income) loss from equity affiliates and investment in subsidiaries	(116.4		)	1.9			20.8			116.4			22.7
Interest expense	103.4			5.3			115.0			(121.7		)	102.0
Interest income	(77.8		)	(34.9		)	(17.1		)	121.7			(8.1		)
Unrealized (gain) loss on derivatives	—			(59.2		)	59.2			—			—
Income (loss) from continuing operations before income taxes	205.1			249.2			(80.5		)	(116.4		)	257.4
Income tax provision	32.4			1.4			40.6			—			74.4
Income (loss) from continuing operations, net of income taxes	172.7			247.8			(121.1		)	(116.4		)	183.0
Loss from discontinued operations, net of income taxes	—			(0.9		)	(3.8		)	—			(4.7		)
Net income (loss)	172.7			246.9			(124.9		)	(116.4		)	178.3
Less: Net income attributable to noncontrolling interests	—			—			5.6			—			5.6
Net income (loss) attributable to common stockholders	$	172.7		$	246.9		$	(130.5	)	$	(116.4	)	$	172.7

Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income



	Three Months Ended March 31, 2012
	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(Dollars in millions)
Net income (loss)	$	172.7	$	246.9	$	(124.9	)	$	(116.4	)	$	178.3
Other comprehensive income, net of income taxes	78.7		32.6		13.6			(46.2		)	78.7
Comprehensive income (loss)	251.4		279.5		(111.3		)	(162.6		)	257.0
Less: Comprehensive income attributable to noncontrolling interests	—		—		5.6			—			5.6
Comprehensive income (loss) attributable to common stockholders	$	251.4	$	279.5	$	(116.9	)	$	(162.6	)	$	251.4

Unaudited Supplemental Condensed Consolidating Balance Sheets



	March 31, 2013
	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Reclassifications/ Eliminations			Consolidated
	(Dollars in millions)
Assets
Current assets
Cash and cash equivalents	$	332.5	$	0.2		$	296.8	$	—		$	629.5
Accounts receivable, net	2.4		41.3			618.1		—			661.8
Inventories	—		271.7			294.3		—			566.0
Assets from coal trading activities, net	—		110.6			—		(52.7		)	57.9
Deferred income taxes	—		36.4			0.4		(3.2		)	33.6
Other current assets	213.1		19.4			270.8		—			503.3
Total current assets	548.0		479.6			1,480.4		(55.9		)	2,452.1
Property, plant, equipment and mine development, net	—		5,060.0			6,537.7		—			11,597.7
Investments and other assets	11,734.7		7.4			1,005.9		(11,325.9		)	1,422.1
Total assets	$	12,282.7	$	5,547.0		$	9,024.0	$	(11,381.8	)	$	15,471.9

Liabilities and Stockholders’ Equity
Current liabilities
Current maturities of long-term debt	$	67.0	$	0.1		$	72.4	$	—		$	139.5
Payables to (receivables from) affiliates, net	164.4		(354.5		)	190.1		—			—
Deferred income taxes	3.2		—			4.7		(3.2		)	4.7
Liabilities from coal trading activities, net	—		6.7			67.9		(52.7		)	21.9
Accounts payable and accrued expenses	120.4		585.3			788.4		—			1,494.1
Total current liabilities	355.0		237.6			1,123.5		(55.9		)	1,660.2
Long-term debt, less current maturities	5,948.1		6.6			51.5		—			6,006.2
Deferred income taxes	25.8		144.3			307.5		—			477.6
Notes payable to (receivable from) affiliates, net	1,032.6		(6,070.8		)	5,038.2		—			—
Other noncurrent liabilities	53.3		1,900.9			469.7		—			2,423.9
Total liabilities	7,414.8		(3,781.4		)	6,990.4		(55.9		)	10,567.9
Peabody Energy Corporation’s stockholders’ equity	4,867.9		9,328.4			1,997.5		(11,325.9		)	4,867.9
Noncontrolling interests	—		—			36.1		—			36.1
Total stockholders’ equity	4,867.9		9,328.4			2,033.6		(11,325.9		)	4,904.0
Total liabilities and stockholders’ equity	$	12,282.7	$	5,547.0		$	9,024.0	$	(11,381.8	)	$	15,471.9

Supplemental Condensed Consolidating Balance Sheets



	December 31, 2012
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Reclassifications/ Eliminations			Consolidated
	(Dollars in millions)
Assets
Current assets
Cash and cash equivalents	$	269.6		$	0.3		$	288.9	$	—		$	558.8
Accounts receivable, net	3.6			5.0			729.2		—			737.8
Inventories	—			271.4			277.0		—			548.4
Assets from coal trading activities, net	—			87.5			—		(35.1		)	52.4
Deferred income taxes	—			57.3			2.3		(3.2		)	56.4
Other current assets	275.0			—			354.6		(7.9		)	621.7
Total current assets	548.2			421.5			1,652.0		(46.2		)	2,575.5
Property, plant, equipment and mine development, net	—			5,120.8			6,680.9		—			11,801.7
Investments and other assets	9,524.7			—			1,037.0		(9,129.9		)	1,431.8
Total assets	$	10,072.9		$	5,542.3		$	9,369.9	$	(9,176.1	)	$	15,809.0

Liabilities and Stockholders’ Equity
Current liabilities
Current maturities of long-term debt	$	—		$	—		$	47.8	$	—		$	47.8
Payables to (receivables from) affiliates, net	2,309.3			(2,904.4		)	595.1		—			—
Deferred income taxes	3.2			—			—		(3.2		)	—
Liabilities from coal trading activities, net	—			4.0			50.5		(35.1		)	19.4
Accounts payable and accrued expenses	63.3			595.0			956.5		(7.9		)	1,606.9
Total current liabilities	2,375.8			(2,305.4		)	1,649.9		(46.2		)	1,674.1
Long-term debt, less current maturities	6,114.5			6.6			84.0		—			6,205.1
Deferred income taxes	43.2			142.0			392.1		—			577.3
Notes (receivable from) payable to affiliates, net	(3,421.3		)	(1,100.4		)	4,521.7		—			—
Other noncurrent liabilities	55.8			1,893.9			464.0		—			2,413.7
Total liabilities	5,168.0			(1,363.3		)	7,111.7		(46.2		)	10,870.2
Peabody Energy Corporation’s stockholders’ equity	4,904.9			6,905.6			2,224.3		(9,129.9		)	4,904.9
Noncontrolling interests	—			—			33.9		—			33.9
Total stockholders’ equity	4,904.9			6,905.6			2,258.2		(9,129.9		)	4,938.8
Total liabilities and stockholders’ equity	$	10,072.9		$	5,542.3		$	9,369.9	$	(9,176.1	)	$	15,809.0

Unaudited Supplemental Condensed Consolidating Statements of Cash Flows



	Three Months Ended March 31, 2013
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(Dollars in millions)
Cash Flows From Operating Activities
Net cash provided by (used in) continuing operations	$	149.1		$	150.9		$	(12.5	)	$	287.5
Net cash (used in) provided by discontinued operations	(4.4		)	1.5			(12.9		)	(15.8		)
Net cash provided by (used in) operating activities	144.7			152.4			(25.4		)	271.7
Cash Flows From Investing Activities
Additions to property, plant, equipment and mine development	—			(16.7		)	(57.3		)	(74.0		)
Changes in accrued expenses related to capital expenditures	—			(2.0		)	(64.4		)	(66.4		)
Proceeds from disposal of assets, net of note receivable	—			1.8			51.2			53.0
Purchases of debt and equity securities	—			—			(4.6		)	(4.6		)
Proceeds from sales and maturities of debt and equity securities	—			—			12.9			12.9
Contributions to joint ventures	—			—			(154.1		)	(154.1		)
Distributions from joint ventures	—			—			174.3			174.3
Advances to related parties	—			—			(23.1		)	(23.1		)
Repayments of loans from related parties	—			—			14.8			14.8
Other, net	—			(1.0		)	—			(1.0		)
Net cash used in continuing operations	—			(17.9		)	(50.3		)	(68.2		)
Net cash used in discontinued operations	—			—			(0.1		)	(0.1		)
Net cash used in investing activities	—			(17.9		)	(50.4		)	(68.3		)
Cash Flows From Financing Activities
Repayments of long-term debt	(100.0		)	—			(8.5		)	(108.5		)
Dividends paid	(22.9		)	—			—			(22.9		)
Repurchase of employee common stock relinquished for tax withholding	(2.6		)	—			—			(2.6		)
Other, net	3.4			(1.8		)	(0.3		)	1.3
Transactions with affiliates, net	40.3			(132.8		)	92.5			—
Net cash (used in) provided by financing activities	(81.8		)	(134.6		)	83.7			(132.7		)
Net change in cash and cash equivalents	62.9			(0.1		)	7.9			70.7
Cash and cash equivalents at beginning of period	269.6			0.3			288.9			558.8
Cash and cash equivalents at end of period	$	332.5		$	0.2		$	296.8		$	629.5

Unaudited Supplemental Condensed Consolidating Statements of Cash Flows



	Three Months Ended March 31, 2012
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(Dollars in millions)
Cash Flows From Operating Activities
Net cash provided by continuing operations	$	118.9		$	204.2		$	107.3		$	430.4
Net cash used in discontinued operations	—			(0.3		)	(34.6		)	(34.9		)
Net cash provided by operating activities	118.9			203.9			72.7			395.5
Cash Flows From Investing Activities
Additions to property, plant, equipment and mine development	—			(54.7		)	(179.8		)	(234.5		)
Investment in Prairie State Energy Campus	—			(3.3		)	—			(3.3		)
Proceeds from disposal of assets	—			4.6			—			4.6
Proceeds from sales and maturities of debt and equity securities	—			—			3.1			3.1
Contributions to joint ventures	—			—			(208.9		)	(208.9		)
Distributions from joint ventures	—			—			221.4			221.4
Advances to related parties	—			—			(322.0		)	(322.0		)
Repayment of loans from related parties	—			—			338.7			338.7
Other, net	—			(0.5		)	—			(0.5		)
Net cash used in continuing operations	—			(53.9		)	(147.5		)	(201.4		)
Net cash used in discontinued operations	—			(0.8		)	(0.9		)	(1.7		)
Net cash used in investing activities	—			(54.7		)	(148.4		)	(203.1		)
Cash Flows From Financing Activities
Repayments of long-term debt	(6.3		)	—			(7.1		)	(13.4		)
Dividends paid	(23.2		)	—			—			(23.2		)
Repurchase of employee common stock relinquished for tax withholding	(7.9		)	—			—			(7.9		)
Excess tax benefits related to share-based compensation	3.5			—			—			3.5
Other, net	4.7			—			(2.8		)	1.9
Transactions with affiliates, net	27.5			(149.1		)	121.6			—
Net cash (used in) provided by financing activities	(1.7		)	(149.1		)	111.7			(39.1		)
Net change in cash and cash equivalents	117.2			0.1			36.0			153.3
Cash and cash equivalents at beginning of period	283.2			0.8			515.1			799.1
Cash and cash equivalents at end of period	$	400.4		$	0.9		$	551.1		$	952.4