8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): December 30, 2004

PEABODY ENERGY CORPORATION
__________________________________________
(Exact name of registrant as specified in its charter)

Delaware	1-16463	13-4004153
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
701 Market Street, St. Louis, Missouri		63101
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: (314) 342-3400

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01. Regulation FD Disclosure.

On December 30, 2004, Peabody Energy Corporation ("Peabody") announced via press release that one of its units was the winning bidder for a lease on 324 million tons of high Btu, low sulfur coal reserves in the Powder River Basin. A copy of Peabody's press release is attached hereto as exhibit 99.1.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PEABODY ENERGY CORPORATION
January 5, 2005	By:	Richard A. Navarre
		Name: Richard A. Navarre
		Title: Executive Vice President and Chief Financial Officer

Exhibit Index

Exhibit No.	Description
99.1	Press release of Peabody Energy Corporation dated December 30, 2004.

EX-99.1

Exhibit 99.1

PEABODY ENERGY
News Release

CONTACT:
Vic Svec
(314) 342-7768

FOR IMMEDIATE RELEASE
December 30, 2004

PEABODY ENERGY TO ACQUIRE 324 MILLION TONS OF
ULTRA-LOW-SULFUR POWDER RIVER BASIN COAL RESERVES

ST. LOUIS, Dec. 30 – Peabody Energy (NYSE: BTU) today announced that one of its units
is the winning bidder for 324 million tons of high Btu, low sulfur coal reserves in the Powder River Basin.

The reserves feature some of the best quality coal in the Powder River Basin, with an average heat content in excess of 9,000 Btu/lb. and a sulfur content of 0.55 lbs./million Btu. The winning bid for the reserves was $0.92 cents per mineable ton, made through a sealed bid auction process. The Bureau of Land Management (BLM) has determined that the offer met the agency’s fair market analysis. Peabody expects to finalize the lease acquisition over the next 60 to 90 days.

The reserves are adjacent to Peabody’s North Antelope Rochelle Mine, located in Campbell County, Wyo., which shipped more than 80 million tons in 2003. Peabody’s Powder River Coal Company mines last year shipped a record 106.5 million tons of coal. With the acquisition, Peabody will control 9.8 billion tons of total reserves, 3.3 billion of which is in the Powder River Basin.

Peabody Energy (NYSE: BTU) is the world’s largest private-sector coal company, with 2003 sales of 203 million tons and $2.8 billion in revenues. Its coal products fuel more than

10 percent of all U.S. electricity and more than 2.5 percent of worldwide electricity.

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