Stock Report | April 19, 2012 | NYS Symbol: BTU | BTU is in the S&P 500

Peabody Energy Corp

S&P Recommendation HOLD

55555

Price $30.46 (as of Apr 19, 2012)

12-Mo. Target Price $34.00

Investment Style Large-Cap Blend

GICS Sector Energy Sub-Industry Coal & Consumable Fuels Key Stock Statistics (Source S&P, Vickers, company reports) 52-Wk Range $68.30 27.11 Trailing 12-Month EPS $3.52 Trailing 12-Month P/E 8.7 $10K Invested 5 Yrs Ago $6,783 Price Performance
30-Week Mov. Avg. 12-Mo. Target Price
80 60 40 30 20

Summary BTU is the world's largest publicly traded coal company, with 9 billion tons of coal reserves. Its coal fuels about 10% of the electricity generated in the U.S. and 2% worldwide.

S&P Oper. EPS 2012E S&P Oper. EPS 2013E P/E on S&P Oper. EPS 2012E Common Shares Outstg. (M)

2.40 NA 12.7 272.3

Market Capitalization(B) Yield (%) Dividend Rate/Share Institutional Ownership (%)

$8.293 1.12 $0.34 79

Beta S&P 3-Yr. Proj. EPS CAGR(%) S&P Credit Rating

1.53 30 BB+

Qualitative Risk Assessment

10-Week Mov. Avg. Relative Strength GAAP Earnings vs. Previous Year Up Down No Change Volume Above Avg. Below Avg. STARS

LOW

MEDIUM

HIGH

Our risk assessment reflects the industry's cyclicality and extensive regulation, the potential for geological difficulties with mines, transportation problems, volatility in the prices of competing fuels, and a narrow customer focus. This is offset by the company's leading market position and geographically well diversified coal holdings. Quantitative Evaluations S&P Quality Ranking
5 3 2 3

Vol. Mil. 45 30 15 0 5 1 N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J

B+ B B+ AA A+ WEAK
HIGHEST = 99

D
4 3 4 3

B-

Relative Strength Rank

25
LOWEST = 1

2009

2010

2011

2012
Options: ASE, CBOE, P, Ph

Revenue/Earnings Data Revenue (Million $) 1Q 2Q 2011 1,743 1,981 2010 1,516 1,661 2009 1,453 1,338 2008 1,276 1,531 2007 1,365 1,322 2006 1,312 1,316 Earnings Per Share ($) 2011 0.70 1.10 2010 0.50 0.77 2009 0.50 0.32 2008 0.26 0.89 2007 0.33 0.40 2006 0.48 0.57

Highlights

Investment Rationale/Risk

The 12-month target price for BTU has recently been changed to $34.00 from $40.00. The Highlights section of this Stock Report will be updated accordingly.

The Investment Rationale/Risk section of this Stock Report will be updated shortly. For the latest News story on BTU from MarketScope, see below. 04/19/12 11:42 am ET ... S&P MAINTAINS HOLD OPINION ON SHARES OF PEABODY ENERGY (BTU 30.32***): Q1 adjusted EPS of $0.67, vs. $0.72, is below our $1.06 estimate, but beats the Capital IQ consensus forecast of $0.54. BTU benefited from expanded Australian production at good margins and U.S. volumes fully priced for 2012 at higher than prevailing prices. BTU is cutting U.S. volumes in response to weak coal demand. We expect it to benefit from its export and Australian operations, but the U.S. outlook remains poor. We trim our '12 EPS estimate to $2.40 from $4.36. We cut our 12-month target price by $6 to $34, 14X our '12 estimate, and the low end of BTU's historical range. /J. Corridore

3Q 1,997 1,865 1,667 1,906 1,494 1,265

4Q 2,254 1,818 1,554 1,881 1,212 1,363

Year 7,974 6,860 6,012 6,593 4,575 5,256

1.02 0.84 0.41 1.38 0.12 0.53

0.92 0.78 0.41 1.11 0.71 0.65

3.76 2.87 1.68 3.63 1.56 2.23

Fiscal year ended Dec. 31. Next earnings report expected: NA. EPS Estimates based on S&P Operating Earnings; historical GAAP earnings are as reported.

Dividend Data (Dates: mm/dd Payment Date: mm/dd/yy)

Amount ($) Date Decl. Ex-Div. Date Stk. of Record Payment Date

0.085 0.085 0.085 0.085

05/03 07/22 10/20 01/26

05/13 08/02 11/01 02/07

05/17 08/04 11/03 02/09

06/07/11 08/25/11 11/25/11 03/01/12

Dividends have been paid since 2001. Source: Company reports.

Please read the Required Disclosures and Analyst Certification on the last page of this report.
Redistribution or reproduction is prohibited without written permission. Copyright 2012 The McGraw-Hill Companies, Inc.

Stock Report | April 19, 2012 | NYS Symbol: BTU

Peabody Energy Corp

Business Summary February 24, 2012 CORPORATE OVERVIEW. Peabody Energy Corp. (BTU) was founded in 1883 as Peabody, Daniels and Co., a retail coal supplier. BTU is currently the world's largest private sector coal company. In 2011, it produced nearly 229.2 million tons of coal, up from 218.8 million tons in 2010. The company's U.S. operations produced almost 204 million tons, or about an 18.7% share of U.S. production, by our calculation, and 25.3 million tons were produced in Australia. Including the company's trading operations, BTU sold nearly 251 million tons of coal to electricity generating and industrial plants globally. At December 31, 2010, BTU had 9 billion tons of proven and probable coal reserves. BTU owns majority interests in 28 coal operations located in the Western and Midwestern U.S. coal producing regions and in Australia. In addition, the company owns a 50% interest in Mongolian coal and mineral interests and owns purchase rights for up to 15% of its Mongolian joint venture partner, Winsway Coking Coal. It also owns a minority interest in one Venezuelan mine through a joint venture agreement. In 2011, 85% of the U.S. mining operation's coal sales were shipped from the U.S. West, and the remaining 15% from the Midwest. Most production in the West is low sulfur coal from the Powder River Basin, which has seen the fastest growth of all U.S. coal regions, according to the Energy Information Administration (EIA). In the West, the company owns and operates mines in Arizona, Colorado, New Mexico and Wyoming. In the Midwest, BTU owns and operates mines in Illinois and Indiana. In 2010, 84% of sales were to U.S. electricity generators, 2% to the U.S. industrial sector, and 14% to foreign customers. About 91% of 2010 coal sales were under long-term contracts. As of January 2012, the company had 100% of its 2012 planned U.S. thermal coal production committed and priced, with 45%-50% of 2013 planned U.S. thermal production unpriced. We estimate that BTU has about 45% of its Australian production unpriced, which we think could allow the company to book production at favorable pricing. In addition to its mining operations, BTU markets and trades coal and emission allowances. Total tons traded amounted to 21.4 million tons in 2011, versus 25.4 million in 2010 and 29.4 million tons in 2009. Other energyrelated businesses include coalbed methane production, transportation services, and the development of coal-fueled generation plants. IMPACT OF MAJOR DEVELOPMENTS. In June 2011, BTU was selected as part of a consortium to develop the Tavan Tolgoi coking coal assets in Mongolia. We view this as a positive development for the company, and we think it provides BTU a foothold into one of the largest undeveloped coking coal reserves in the world, noting that some estimates place total coking coal reserves at 6.5 billion metric tons. We also think that the development of the Tavan Tolgoi field will help BTU due to the mine's relatively close proximity to regions in Asia experiencing outsized and growing coal demand. However, we also think that the long lead times needed to develop the appropriate mining infrastructure suggests that the benefits of these operations will accrue to BTU over the long term. MARKET PROFILE. In our opinion, Peabody Energy is one of the better positioned coal companies in the U.S. in terms of scale of its operations, market position, geographic exposures and sales mix. Peabody is the largest private sector coal producer in the world, and controls the largest reserve position, at more than 9 billion tons at December 31, 2010. We think this positions the company to create relatively stronger organic growth over the next three to five years by developing and expanding existing reserves. In terms of geographic mix, Peabody has a leading market position in the fastest-growing U.S. markets. The company is the number one producer in the Powder River Basin, Colorado, and the Midwest. We believe BTU's assets in Australia strategically position it to benefit from expected long-term increases in demand from the Pacific Rim, as China has become a net coal importer, and neighboring countries including Japan, South Korea, India and Vietnam increasingly look for other sources of high-quality thermal and metallurgical coal. Costs for customers to transport coal are high, and, therefore, the industry had been historically regional. However, given BTU's reserves and low-cost, low-sulfur coal in the western U.S., it has been gaining share east of the Mississippi River while remaining a primary supplier west of the Mississippi. By 2035, the EIA estimates that the Powder River Basin will account for 64% of total U.S. production, the Interior Region 13%, and Appalachia 22%. The Power River Basin is, by EIA estimates, expected to experience the largest compound annual growth in production and see a CAGR of 1.9% from 2009 to 2035. With Peabody's large reserves of ultra-low sulfur coal in the Powder River Basin, the company is able to charge a premium over higher sulfur coal, enabling this region to generate higher EBITDA margins than its Appalachian assets. Finally, we believe that Peabody is well positioned to benefit from rising coal prices, as the company has large volumes of coal still available to be repriced over the next few years. FINANCIAL TRENDS. In the five years through 2011, BTU generated a revenue compound annual growth rate (CAGR) of 12%, an EBITDA CAGR of 30%, an EBIT CAGR of 32%, and an earnings from continuing operations CAGR of 19%. Total assets rose at a five-year CAGR of 11.6%, while capital expenditures increased at a CAGR of 6.8% over the same time period. Capital expenditures were $903 million in 2011, up from $633 million in 2010 and $441 million spent in 2009. 2012 capital spending is targeted at $1.2 billion-$1.4 billion, according to BTU. Corporate Information Investor Contact C. Morrow (314-342-7900) Office 701 Market St, St. Louis, MO 63101-1826. Telephone 314-342-3400. Email publicrelations@peabodyenergy.com Website http://www.peabodyenergy.com

Officers Chrmn & CEO G.H. Boyce Pres R.A. Navarre COO & EVP E. Ford EVP & CFO M.C. Crews EVP & Chief Admin Officer S.D. Fiehler

Board Members G. H. Boyce W. A. Coley W. E. James R. B. Karn, III M. F. Keeth H. E. Lentz, Jr. R. A. Malone W. C. Rusnack J. F. Turner S. A. Van Trease A. H. Washkowitz

Domicile Delaware Founded 1883 Employees 8,300 Stockholders 1,307

Redistribution or reproduction is prohibited without written permission. Copyright 2012 The McGraw-Hill Companies, Inc.

Stock Report | April 19, 2012 | NYS Symbol: BTU

Peabody Energy Corp

Quantitative Evaluations S&P Fair Value Rank
5 1
LOWEST

Expanded Ratio Analysis

2 3 4 5
HIGHEST

Based on S&P's proprietary quantitative model, stocks are ranked from most overvalued (1) to most undervalued (5).

Fair Value Calculation Investability Quotient Percentile Volatility Technical Evaluation Insider Activity

$41.60 Analysis of the stock's current worth, based on S&P's proprietary

quantitative model suggests that BTU is Undervalued by $11.14 or 36.6%.

Price/Sales Price/EBITDA Price/Pretax Income P/E Ratio Avg. Diluted Shares Outstg (M)
Figures based on calendar year-end price

2011 1.12 NA 6.51 8.86 270.3

2010 2.52 NA 15.51 22.23 269.9

2009 2.01 NA 18.56 27.29 267.5

2008 0.94 3.48 5.24 6.27 271.3

29
LOWEST = 1 HIGHEST = 100

Key Growth Rates and Averages Past Growth Rate (%) Sales Net Income Ratio Analysis (Annual Avg.) Net Margin (%) % LT Debt to Capitalization Return on Equity (%)
1 Year 3 Years 5 Years 9 Years

BTU scored lower than 71% of all companies for which an S&P Report is available.

16.24 30.07

7.28 6.60

9.60 10.95

12.42 33.42

LOW BEARISH

AVERAGE

HIGH

Since February, 2012, the technical indicators for BTU have been BEARISH.

12.67 53.86 19.86

10.46 44.11 17.19

11.10 47.33 21.04

9.16 45.55 18.85

UNFAVORABLE

NEUTRAL

FAVORABLE

Company Financials Fiscal Year Ended Dec. 31 Per Share Data ($) Tangible Book Value Cash Flow Earnings S&P Core Earnings Dividends Payout Ratio Prices:High Prices:Low P/E Ratio:High P/E Ratio:Low Income Statement Analysis (Million $) Revenue Operating Income Depreciation Interest Expense Pretax Income Effective Tax Rate Net Income S&P Core Earnings 2011 20.23 5.56 3.76 3.64 0.34 9% 73.95 30.60 20 8 2010 17.25 4.62 2.87 2.90 0.29 10% 64.59 34.89 23 12 2009 13.98 3.17 1.68 1.60 0.25 15% 48.21 20.17 29 12 2008 10.96 5.31 3.63 3.36 0.24 7% 88.69 16.00 24 4 2007 9.33 2.91 1.56 1.42 0.24 15% 62.55 36.20 40 23 2006 7.95 3.63 2.23 2.00 0.24 11% 76.29 32.94 34 15 2005 8.27 2.76 1.58 1.43 0.17 11% 43.48 18.37 28 12 2004 3.33 0.88 0.70 0.63 0.13 19% 21.70 9.10 31 13 2003 5.18 1.26 0.19 0.11 0.11 59% 10.75 6.13 57 32 2002 5.16 1.57 0.49 0.27 0.10 20% 7.69 4.38 16 9

7,974 NA 482 239 1,374 26.4% 1,010 991

6,860 NA 441 204 1,113 27.7% 777 780

6,012 NA 405 201 652 29.7% 443 431

6,593 1,774 454 226 1,177 15.8% 985 910

4,575 827 362 237 341 NM 421 383

5,256 884 377 143 531 NM 601 541

4,644 703 316 103 426 0.23% 423 382

3,632 519 270 96.8 153 NM 178 160

2,829 385 234 98.5 -3.18 NM 41.5 23.9

2,717 390 232 102 78.8 NM 106 58.5

Balance Sheet & Other Financial Data (Million $) Cash 799 Current Assets 3,230 Total Assets 16,733 Current Liabilities 1,824 Long Term Debt 6,556 Common Equity 5,516 Total Capital 12,173 Capital Expenditures 883 Cash Flow 1,504 Current Ratio 1.8 % Long Term Debt of Capitalization 53.9 % Net Income of Revenue 12.7 % Return on Assets 7.2 % Return on Equity 19.9

1,295 2,958 11,363 1,623 2,707 4,689 7,439 633 1,246 1.8 36.4 11.3 7.3 18.4

989 2,189 9,955 1,312 2,738 3,756 6,508 441 848 1.7 42.1 7.4 4.5 13.3

450 1,971 9,822 1,856 3,139 2,904 6,061 486 1,439 1.1 51.9 14.9 10.1 36.3

45.3 1,927 9,668 2,187 3,139 2,520 5,975 649 783 0.9 52.5 9.2 4.4 17.3

327 1,274 9,514 1,368 3,168 2,339 5,735 478 978 0.9 55.2 11.4 7.3 26.6

503 1,325 6,852 1,023 1,383 2,178 3,902 384 739 1.3 35.4 9.1 6.5 21.7

390 1,055 6,179 774 1,406 1,725 3,526 267 448 1.4 39.9 4.9 3.1 12.5

118 683 5,280 632 1,173 1,132 2,742 156 276 1.1 42.8 NM NM NM

71.2 550 5,140 632 982 1,081 2,599 209 338 0.9 37.8 3.9 2.1 10.0

Data as orig reptd.; bef. results of disc opers/spec. items. Per share data adj. for stk. divs.; EPS diluted. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked. UR-Under Review. Redistribution or reproduction is prohibited without written permission. Copyright 2012 The McGraw-Hill Companies, Inc.

Stock Report | April 19, 2012 | NYS Symbol: BTU

Peabody Energy Corp

Sub-Industry Outlook
Our fundamental 12-month outlook for the coal sub-industry is neutral. Inventory stockpiles of coal in the U.S. at power producers are at high levels after a mild winter in the U.S. Also, natural gas prices near historic lows are leading to switching among power producers. However, many coal companies have guaranteed volume contracts at pricing above prevailing rates, helping them survive the current downturn. Longer term, coal demand is likely to be driven by international demand among developing countries, as U.S. coal companies improve their export capabilities. The outlook for export coal and metallurgical coal is strong due to demand in China. According to the Energy Information Administration (EIA), electric generation-based coal consumption increased more than 4.8% in 2010 as demand improved along with the economy. In 2011 through September, electric generation-based coal consumption was down 3.2%, and total coal consumption declined 3.0%. For 2012, the EIA projects that total coal consumption will remain flat. We think overall coal demand will continue to decline in 2012 on weaker demand for utility coal, despite greater steel production and higher coal exports. We believe that high inventory levels, relatively slow economic growth and other pricing/demand dynamics will weigh somewhat on coal consumption in 2012. The EIA estimates that coal supply increased 4.4% in 2010, primarily on inventory withdrawals, as primary supply rose an estimated 0.3%. In 2011, the EIA estimated that total supply would fall 2.1%, and projected that production would decrease 1.7%. For 2012, total supply is expected to increase modestly on production gains of 0.3%. In our opinion, production levels and exports are likely to increase in future periods as U.S. coal producers increase production levels to meet growing domestic and international demand, primarily in 2012. According to the EIA, coal inventories totaled 144 million tons as of the end of September 2011, down 12% from a year earlier. We think coal inventories remain high -above the average of about 50 days of supply. According to the EIA, U.S. coal production increased 0.5% in 2011 through November. In 2010, coal production rose 0.9%. Year to date through March 2, the S&P Coal & Consumable Fuels Index fell 7.3%, versus a 9.0% increase in the S&P 1500. In 2011, the S&P Coal & Consumable Fuels Index declined 46.6%, compared to a 0.3% decline in the S&P 1500 Index. -Jim Corridore
100

Stock Performance
GICS Sector: Energy Sub-Industry: Coal & Consumable Fuels Based on S&P 1500 Indexes Month-end Price Performance as of 03/30/12
300

250

200

150

50

2008
Sub-Industry Sector

2009

2010

2011

2012

S&P 1500

NOTE: All Sector & Sub-Industry information is based on the Global Industry Classification Standard (GICS)

Sub-Industry : Coal & Consumable Fuels Peer Group*: Coal & Consumable Fuels
Peer Group Peabody Energy Alpha Natural Res Arch Coal CONSOL Energy Cameco Corp James River Coal Natural Resource Ptnrs USEC Inc Westmoreland Coal Yanzhou Coal Mining ADR Stock Symbol BTU ANR ACI CNX CCJ JRCC NRP USU WLB YZC Stk.Mkt. Cap. (Mil. $) 7,749 3,564 2,097 7,764 8,297 172 2,531 125 129 10,759 Recent Stock Price($) 28.46 16.20 9.83 34.19 21.04 4.95 23.87 1.02 9.32 21.60 52 Week High/Low($) 68.30/27.11 59.20/13.80 35.06/9.70 55.33/29.85 31.25/16.59 25.39/4.51 35.23/23.13 4.71/1.00 19.28/6.61 41.89/17.49 Beta 1.53 1.78 1.83 1.49 1.62 2.03 0.77 1.49 1.95 2.39 Yield (%) 1.2 Nil 4.5 1.5 1.9 Nil 9.2 Nil Nil 3.7 P/E Ratio 8 NM 13 12 16 NM 48 NM NM 8 Fair Value Calc.($) 41.60 NA 15.50 44.30 24.30 NA NA NA NA 38.80 S&P Return on Quality IQ Revenue Ranking %ile (%) B+ NR B B B NR B+ C C NR 29 9 24 27 93 8 76 7 7 9 12.7 NM 3.3 10.6 31.0 NM 14.0 NM NM 25.9 LTD to Cap (%) 53.9 28.1 49.2 46.2 15.6 59.5 55.3 38.7 806.7 36.9

NA-Not Available NM-Not Meaningful NR-Not Rated. *For Peer Groups with more than 15 companies or stocks, selection of issues is based on market capitalization.

Source: S&P. Redistribution or reproduction is prohibited without written permission. Copyright 2012 The McGraw-Hill Companies,Inc.

Stock Report | April 19, 2012 | NYS Symbol: BTU

Peabody Energy Corp

S&P Analyst Research Notes and other Company News
April 19, 2012 UP 2.09 to 30.55... BTU posts $0.67 vs. $0.72 Q1 adj. EPS despite 17% revenue rise. Capital IQ consensus forecast was $0.54 EPS. April 19, 2012 11:42 am ET ... S&P MAINTAINS HOLD OPINION ON SHARES OF PEABODY ENERGY (BTU 30.32***): Q1 adjusted EPS of $0.67, vs. $0.72, is below our $1.06 estimate, but beats the Capital IQ consensus forecast of $0.54. BTU benefited from expanded Australian production at good margins and U.S. volumes fully priced for 2012 at higher than prevailing prices. BTU is cutting U.S. volumes in response to weak coal demand. We expect it to benefit from its export and Australian operations, but the U.S. outlook remains poor. We trim our '12 EPS estimate to $2.40 from $4.36. We cut our 12-month target price by $6 to $34, 14X our '12 estimate, and the low end of BTU's historical range. /J. Corridore March 12, 2012 Peabody Energy Corp. announced that its chief operating officer Eric Ford has been named president of its Australian operations. It has appointed chief commercial officer Richard A. Navarre its Americas president and Chris Hagedorn as president of Asia and coal trading. February 7, 2012 Peabody Energy Corp. announced that Bradley E. Phillips has been named Senior Vice President of Transition Services in Australia. In this role, Phillips will continue to lead the organizational integration of Macarthur Coal and Peabody Energy Australia. He will report to Peabody Energy's Executive Vice President and Chief Operating Officer Eric Ford. Most recently, Phillips was General Manager of Finance for Peabody's Australia Operations. He oversaw financial and capital planning, treasury, risk and assurance as well as financial reporting, shared services and financial systems and continuous improvement activities. In addition, he was actively involved in the successful acquisition of Macarthur Coal in 2011. January 24, 2012 12:57 pm ET ... S&P DOWNGRADES OPINION ON SHARES OF PEABODY ENERGY TO HOLD FROM BUY (BTU 36.22***): Q4 EPS of $0.98, vs. $0.87, misses our $1.40 estimate, on higher costs related to the acquisition of Macarthur Coal and lower than expected production in Australia. BTU is fully contracted for 2012 PRB coal at prices above the current market price, but we are worried about the potential for a sharp drop in realized pricing in 2013. In addition, BTU is facing cost pressures to bring Macarthur mines up to standard. We cut our '12 EPS forecast to $4.36 from $5.70 and our 12-month target price to $40 from $68, 9X our '12 EPS estimate and the low end of BTU's historical range. /J. Corridore December 16, 2011 Peabody Energy Corp. announced new appointments across the company's Midwest and Colorado operations in the United States, as well as at the Metropolitan Mine in New South Wales, Australia. Marc Hathhorn joins the company as Senior Vice President of Midwest Operations, with responsibility to lead Peabody's five surface and five underground coal mines across Illinois and Indiana. He reports to Charles Meintjes, Group Executive of Midwest and Colorado, and he is based at the Midwest regional office in Evansville, Ind. Hathhorn brings to Peabody almost two decades of extensive international mining, transportation infrastructure and engineering experience. Prior to Peabody, he served as Vice President of Mining Operations for Drummond company's coal operations in Colombia, South America. E. Jason Davis has been named General Manager of the Metropolitan Mine in New South Wales, Australia, with responsibility for the underground operation and surface facilities. He reports to Neville McAlary, Senior Vice President Operations Underground for Peabody Energy Australia. Davis most recently was General Manager of Colorado Operations in the United States. Succeeding Davis as General Manager of Colorado Operations is Patrick Sollars. Sollars assumes responsibility for the Twentymile Mine in Colorado. He will report to Kent Holcomb, Vice President of Operations Support of Midwest and Colorado. Sollars has more than two decades of coal mining experience at Twentymile, including most recently in the role of Superintendent of Operations. He also has held engineering, production and maintenance roles across the operation. December 9, 2011 Peabody Energy Corp. announced that Brendan Pearson has been named Vice
Source: S&P. Redistribution or reproduction is prohibited without written permission. Copyright 2012 The McGraw-Hill Companies,Inc.

President of Federal Government Relations, Australia, reporting to Eric Ford, Peabody's Global Chief Operating Officer, and Michael Flannigan, Vice President of International Relations, based in St. Louis. Pearson will be based in Brisbane, Queensland. Pearson is joining Peabody from the Minerals Council of Australia (MCA), where as Deputy Chief Executive he played a key leadership and policy-making role in the peak industry body that represents Australia's $700 billion mining and minerals processing industry. During his tenure at MCA, Pearson was responsible for shaping the minerals sector approach to a range of policy issues, including climate change, industry economics, trade and investment, education and skills, land use and infrastructure. December 7, 2011 Peabody Energy Inc. announced that it has named Allen T. Capdeboscq as vice president of financial and capital planning and Amy B. Schwetz as vice president of investor relations. Schwetz will lead communication of company's activities with the investment community, including financial communications, messaging, shareholder analysis and targeting, and investor and sell-side analyst outreach. She will report to senior vice president of investor relations and corporate communications Vic Svec. Reporting to Schwetz is Katie D. Cason, who has been promoted to Director of investor relations. Schwetz joined the company in 2005 as Director of compliance and accounting policies, and most recently was vice president of financial and capital planning. Allen T. Capdeboscq will replace Schwetz as vice president of financial and capital planning and will report to Executive vice president and Chief Financial Officer Mike Crews. Capdeboscq will provide leadership in planning, forecasting and capital management. He previously served as vice president of business development and had a significant lead role in company's acquisition of Macarthur Coal. Reporting to Capdeboscq are director of financial planning Eric Baltz and Director of capital planning Jeff Timmermann. November 23, 2011 Peabody Energy Corp. announced it has named Chris A. Shelton as Vice President of Applied Technology. Shelton will lead a team of technical and engineering professionals to implement solutions that enhance operational performance across Peabody's global platform. In this role, he will oversee the use of data and analytics, mining technology and monitoring systems to strengthen safety and productivity, improve efficiencies, and automate processes. Shelton will report to Jeane L. Hull, Executive Vice President of Technical Services. November 22, 2011 Peabody Energy Corp. said it relocated its chief operating officer to Brisbane, Australia, highlighting the importance of Australia to the company's growth plans. Peabody COO Eric Ford will lead Peabody's global operations from Brisbane. He recently was named chairman of the board of Australia's Macarthur Coal Ltd., which the company assumed control of in late October.

Stock Report | April 19, 2012 | NYS Symbol: BTU

Peabody Energy Corp

Analysts' Recommendations
Monthly Average Trend Buy
B

Wall Steet Consensus Opinion

Buy/Hold
BH

Hold
H

Weak Hold
WH

Sell S

No Opinion

BTU Trend

BUY/HOLD Companies Offering Coverage Over 30 firms follow this stock; not all firms are displayed. Atlantic Equities LLP BB&T Capital Markets BMO Capital Markets, Canadian Equity Research Barclays BofA Merrill Lynch Brean Murray, Carret & Co. CRT Capital Group LLC Citigroup Inc Credit Agricole Securities (USA) Inc. Credit Suisse Dahlman Rose & Company, LLC Daiwa Securities Capital Markets Co. Ltd. Davenport & Company Deutsche Bank FBR Capital Markets & Co. Gabelli & Company, Inc. Goldman Sachs HSBC Howard Weil Incorporated JP Morgan Jefferies & Company, Inc. Johnson Rice & Company, L.L.C. Macquarie Research Moody?s Morgan Stanley Morningstar Inc. RBC Capital Markets Raymond James & Associates S&P Equity Research Simmons & Company International Wall Street Consensus vs. Performance

Wall Street Average

B BH H WH S

Number of Analysts Following Stock 28 24 20

Stock Price ($) 80

60

40

20

2010

2011

2012

Of the total 36 companies following BTU, 25 analysts currently publish recommendations. No. of Ratings 11 7 5 1 0 1 25 % of Total 44 28 20 4 0 4 100 1 Mo. Prior 3 Mos. Prior 11 10 7 9 5 4 1 1 0 0 1 1 25 25

Buy Buy/Hold Hold Weak Hold Sell No Opinion Total Wall Street Consensus Estimates
Estimates 8 6 4 2
D J F M A M J

2011

2012

2013

2011 Actual $3.52

For fiscal year 2012, analysts estimate that BTU will earn $3.08. For fiscal year 2013, analysts estimate that BTU's earnings per share will grow by 36% to $4.18.

2011

2012

Fiscal Years 2013 2012 2013 vs. 2012 Q1'13 Q1'12 Q1'13 vs. Q1'12

Avg Est. 4.18 3.08 36% 0.91 0.55 65%

High Est. 5.50 4.55 21% 1.03 0.63 63%

Low Est. 2.59 2.06 26% 0.69 0.49 41%

# of Est. 23 23 0% 4 14 -71%

Est. P/E 7.3 9.9 -26% 33.5 55.4 -40%

A company's earnings outlook plays a major part in any investment decision. Standard & Poor's organizes the earnings estimates of over 2,300 Wall Street analysts, and provides their consensus of earnings over the next two years. This graph shows the trend in analyst estimates over the past 15 months.

Source: S&P, Capital IQ Estimates, Inc. Redistribution or reproduction is prohibited without written permission. Copyright 2012 The McGraw-Hill Companies,Inc.

Stock Report | April 20, 2012 | NYS Symbol: BTU

Peabody Energy Corp

Glossary
S&P STARS Since January 1, 1987, Standard and Poor's Equity Research Services has ranked a universe of common stocks based on a given stock's potential for future performance. Under proprietary STARS (STock Appreciation Ranking System), S&P equity analysts rank stocks according to their individual forecast of a stock's future total return potential versus the expected total return of a relevant benchmark (e.g., a regional index (S&P Asia 50 Index, S&P Europe 350 Index or S&P 500 Index)), based on a 12-month time horizon. STARS was designed to meet the needs of investors looking to put their investment decisions in perspective. Data used to assist in determining the STARS ranking may be the result of the analyst's own models as well as internal proprietary models resulting from dynamic data inputs. S&P 12-Month Target Price The S&P equity analyst's projection of the market price a given security will command 12 months hence, based on a combination of intrinsic, relative, and private market valuation metrics, including S&P Fair Value. Investment Style Classification Characterizes the stock as Growth or Value, and indicates its capitalization level. Growth is evaluated along three dimensions (earnings, sales and internal growth), while Value is evaluated along four dimensions (book-to-price, cash flow-to-price, dividend yield and sale-to-price). Growth stocks score higher than the market average on growth dimensions and lower on value dimensions. The reverse is true for Value stocks. Certain stocks are classified as Blend, indicating a mixture of growth and value characteristics and cannot be classified as purely growth or value. S&P EPS Estimates Standard & Poor's earnings per share (EPS) estimates reflect analyst projections of future EPS from continuing operations, and generally exclude various items that are viewed as special, non-recurring, or extraordinary. Also, S&P EPS estimates reflect either forecasts of S&P equity analysts; or, the consensus (average) EPS estimate, which are independently compiled by Capital IQ, a data provider to Standard & Poor's Equity Research. Among the items typically excluded from EPS estimates are asset sale gains; impairment, restructuring or merger-related charges; legal and insurance settlements; in process research and development expenses; gains or losses on the extinguishment of debt; the cumulative effect of accounting changes; and earnings related to operations that have been classified by the company as discontinued. The inclusion of some items, such as stock option expense and recurring types of other charges, may vary, and depend on such factors as industry practice, analyst judgment, and the extent to which some types of data is disclosed by companies. S&P Core Earnings Standard & Poor's Core Earnings is a uniform methodology for adjusting operating earnings by focusing on a company's after-tax earnings generated from its principal businesses. Included in the Standard & Poor's definition are employee stock option grant expenses, pension costs, restructuring charges from ongoing operations, write-downs of depreciable or amortizable operating assets, purchased research and development, M&A related expenses and unrealized gains/losses from hedging activities. Excluded from the definition are pension gains, impairment of goodwill charges, gains or losses from asset sales, reversal of prior-year charges and provision from litigation or insurance settlements. Qualitative Risk Assessment The S&P equity analyst's view of a given company's operational risk, or the risk of a firm's ability to continue as an ongoing concern. The Qualitative Risk Assessment is a relative ranking to the S&P U.S. STARS universe, and should be reflective of risk factors related to a company's operations, as opposed to risk and volatility measures associated with share prices. Quantitative Evaluations In contrast to our qualitative STARS recommendations, which are assigned by S&P analysts, the quantitative evaluations described below are derived from proprietary arithmetic models. These computer-driven evaluations may at times contradict an analyst's qualitative assessment of a stock. One primary reason for this is that different measures are used to determine each. For instance, when designating STARS, S&P analysts assess many factors that cannot be reflected in a model, such as risks and opportunities, management changes, recent competitive shifts, patent expiration, litigation risk, etc. S&P Quality Ranking Growth and stability of earnings and dividends are deemed key elements in establishing S&P's Quality Rankings for common stocks, which are designed to capsulize the nature of this record in a single symbol. It should be noted, however, that the process also takes into consideration certain adjustments and modifications deemed desirable in establishing such rankings. The final score for each stock is measured against a scoring matrix determined by analysis of the scores of a large and representative sample of stocks. The range of scores in the array of this sample has been aligned with the following ladder of rankings: A+ A AB+ NR Highest High Above Average Average Not Ranked B BC D Below Average Lower Lowest In Reorganization as an indicator of potential medium-to-long term return and as a caution against downside risk. The measure takes into account variables such as technical indicators, earnings estimates, liquidity, financial ratios and selected S&P proprietary measures. S&P's IQ Rationale: Peabody Energy Proprietary S&P Measures Technical Indicators Liquidity/Volatility Measures Quantitative Measures IQ Total Raw Score 29 14 19 4 66 Max Value 115 40 20 75 250

Volatility Rates the volatility of the stock's price over the past year. Technical Evaluation In researching the past market history of prices and trading volume for each company, S&P's computer models apply special technical methods and formulas to identify and project price trends for the stock. Relative Strength Rank Shows, on a scale of 1 to 99, how the stock has performed versus all other companies in S&P's universe on a rolling 13-week basis. Global Industry Classification Standard (GICS) An industry classification standard, developed by Standard & Poor's in collaboration with Morgan Stanley Capital International (MSCI). GICS is currently comprised of 10 Sectors, 24 Industry Groups, 68 Industries, and 154 Sub-Industries. S&P Issuer Credit Rating A Standard & Poor's Issuer Credit Rating is a current opinion of an obligor's overall financial capacity (its creditworthiness) to pay its financial obligations. This opinion focuses on the obligor's capacity and willingness to meet its financial commitments as they come due. It does not apply to any specific financial obligation, as it does not take into account the nature of and provisions of the obligation, its standing in bankruptcy or liquidation, statutory preferences, or the legality and enforceability of the obligation. In addition, it does not take into account the creditworthiness of the guarantors, insurers, or other forms of credit enhancement on the obligation. The Issuer Credit Rating is not a recommendation to purchase, sell, or hold a financial obligation issued by an obligor, as it does not comment on market price or suitability for a particular investor. Issuer Credit Ratings are based on current information furnished by obligors or obtained by Standard & Poor's from other sources it considers reliable. Standard & Poor's does not perform an audit in connection with any Issuer Credit Rating and may, on occasion, rely on unaudited financial information. Issuer Credit Ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or based on other circumstances. Exchange Type ASE - American Stock Exchange; AU - Australia Stock Exchange; BB - Bulletin Board; NGM - Nasdaq Global Market; NNM - Nasdaq Global Select Market; NSC Nasdaq Capital Market; NYS - New York Stock Exchange; OTN - Other OTC (Over the Counter); OTC Over the Counter; QB - OTCQB; QX - OTCQX; TS - Toronto Stock Exchange; TXV - TSX Venture Exchange; NEX NEX Exchange. S&P Equity Research Services Standard & Poor's Equity Research Services U.S. includes Standard & Poor's Investment Advisory Services LLC; Standard & Poor's Equity Research Services Europe includes McGraw-Hill Financial Research Europe Limited trading as Standard & Poor's; Standard & Poor's Equity Research Services Asia includes McGraw-Hill Financial Singapore Pte. Limited's

S&P Fair Value Rank Using S&P's exclusive proprietary quantitative model, stocks are ranked in one of five groups, ranging from Group 5, listing the most undervalued stocks, to Group 1, the most overvalued issues. Group 5 stocks are expected to generally outperform all others. A positive (+) or negative (-) Timing Index is placed next to the Fair Value ranking to further aid the selection process. A stock with a (+) added to the Fair Value Rank simply means that this stock has a somewhat better chance to outperform other stocks with the same Fair Value Rank. A stock with a (-) has a somewhat lesser chance to outperform other stocks with the same Fair Value Rank. The Fair Value rankings imply the following: 5-Stock is significantly undervalued; 4-Stock is moderately undervalued; 3-Stock is fairly valued; 2-Stock is modestly overvalued; 1-Stock is significantly overvalued. S&P Fair Value Calculation The price at which a stock should trade at, according to S&P's proprietary quantitative model that incorporates both actual and estimated variables (as opposed to only actual variables in the case of S&P Quality Ranking). Relying heavily on a company's actual return on equity, the S&P Fair Value model places a value on a security based on placing a formula-derived price-to-book multiple on a company's consensus earnings per share estimate. Insider Activity Gives an insight as to insider sentiment by showing whether directors, officers and key employees who have proprietary information not available to the general public, are buying or selling the company's stock during the most recent six months. Funds From Operations FFO FFO is Funds from Operations and equal to a REIT's net income, excluding gains or losses from sales of property, plus real estate depreciation. Investability Quotient (IQ) The IQ is a measure of investment desirability. It serves

Redistribution or reproduction is prohibited without written permission. Copyright 2012 Standard & Poor's Financial Services LLC. STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.

Stock Report | April 20, 2012 | NYS Symbol: BTU

Peabody Energy Corp

offices in Singapore, Standard & Poor's Investment Advisory Services (HK) Limited in Hong Kong, Standard & Poor's Malaysia Sdn Bhd, and Standard & Poor's Information Services (Australia) Pty Ltd. Abbreviations Used in S&P Equity Research Reports CAGR- Compound Annual Growth Rate; CAPEX- Capital Expenditures; CY- Calendar Year; DCF- Discounted Cash Flow; EBIT- Earnings Before Interest and Taxes; EBITDAEarnings Before Interest, Taxes, Depreciation and Amortization; EPS- Earnings Per Share; EV- Enterprise Value; FCF- Free Cash Flow; FFO- Funds From Operations; FY- Fiscal Year; P/E- Price/Earnings ; PEG RatioP/E-to-Growth Ratio; PV- Present Value; R&D- Research & Development; ROE- Return on Equity; ROI- Return on Investment; ROIC- Return on Invested Capital; ROAReturn on Assets; SG&A- Selling, General & Administrative Expenses; WACC- Weighted Average Cost of Capital Dividends on American Depository Receipts (ADRs) and American Depository Shares (ADSs) are net of taxes (paid in the country of origin). underperform the total return of a relevant benchmark over the coming 12 months, and the share price not anticipated to show a gain. Poor's or an affiliate earning compensation in addition to the subscription fees or other compensation for services rendered by Standard & Poor's. A reference to a particular investment or security by Standard & Poor's and one of its affiliates is not a recommendation to buy, sell, or hold such investment or security, nor is it considered to be investment advice. Indexes are unmanaged, statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index. Standard & Poor's and its affiliates provide a wide range of services to, or relating to, many organizations, including issuers of securities, investment advisers, broker-dealers, investment banks, other financial institutions and financial intermediaries, and accordingly may receive fees or other economic benefits from those organizations, including organizations whose securities or services they may recommend, rate, include in model portfolios, evaluate or otherwise address. S&P Capital IQ and/or one of its affiliates has performed services for and received compensation from this company during the past twelve months.

555551-STARS (Strong Sell): Total return is

expected to underperform the total return of a relevant benchmark by a wide margin over the coming 12 months, with shares falling in price on an absolute basis. Relevant benchmarks: In North America the relevant benchmark is the S&P 500 Index, in Europe and in Asia, the relevant benchmarks are generally the S&P Europe 350 Index and the S&P Asia 50 Index. For All Regions: All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed in this research report. S&P Global Quantitative Recommendations Distribution In Europe: As of March 30, 2012, Standard & Poor's Quantitative Services Europe recommended 52.0% of issuers with buy recommendations, 19.0% with hold recommendations and 27.0% with sell recommendations. In Asia: As of March 30, 2012, Standard & Poor's Quantitative Services Asia recommended 35.9% of issuers with buy recommendations, 21.0% with hold recommendations and 32.0% with sell recommendations. Globally: As of March 30, 2012, Standard & Poor's Quantitative Services globally recommended 45.0% of issuers with buy recommendations, 20.0% with hold recommendations and 33.0% with sell recommendations. Additional information is available upon request.

Required Disclosures
In contrast to the qualitative STARS recommendations covered in this report, which are determined and assigned by S&P equity analysts, S&Ps quantitative evaluations are derived from S&Ps proprietary Fair Value quantitative model. In particular, the Fair Value Ranking methodology is a relative ranking methodology, whereas the STARS methodology is not. Because the Fair Value model and the STARS methodology reflect different criteria, assumptions and analytical methods, quantitative evaluations may at times differ from (or even contradict) an equity analysts STARS recommendations. As a quantitative model, Fair Value relies on history and consensus estimates and does not introduce an element of subjectivity as can be the case with equity analysts in assigning STARS recommendations. S&P Global STARS Distribution In North America: As of March 30, 2012, research analysts at Standard & Poor's Equity Research Services North America recommended 34.5% of issuers with buy recommendations, 57.9% with hold recommendations and 7.6% with sell recommendations. In Europe: As of March 30, 2012, research analysts at Standard & Poor's Equity Research Services Europe recommended 30.1% of issuers with buy recommendations, 49.4% with hold recommendations and 20.5% with sell recommendations. In Asia: As of March 30, 2012, research analysts at Standard & Poor's Equity Research Services Asia recommended 35.9% of issuers with buy recommendations, 54.3% with hold recommendations and 9.8% with sell recommendations. Globally: As of March 30, 2012, research analysts at Standard & Poor's Equity Research Services globally recommended 34.0% of issuers with buy recommendations, 56.3% with hold recommendations and 9.7% with sell recommendations.

Disclaimers
With respect to reports issued to clients in Japan and in the case of inconsistencies between the English and Japanese version of a report, the English version prevails. With respect to reports issued to clients in German and in the case of inconsistencies between the English and German version of a report, the English version prevails. Neither S&P nor its affiliates guarantee the accuracy of the translation. Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Past performance is not necessarily indicative of future results.

Other Disclosures
This report has been prepared and issued by Standard & Poor's and/or one of its affiliates. In the United States, research reports are prepared by Standard & Poor's Investment Advisory Services LLC ("SPIAS"). In the United States, research reports are issued by Standard & Poor's ("S&P"); in the United Kingdom by McGraw-Hill Financial Research Europe Limited, which is authorized and regulated by the Financial Services Authority and trades as Standard & Poor's; in Hong Kong by Standard & Poor's Investment Advisory Services (HK) Limited, which is regulated by the Hong Kong Securities Futures Commission; in Singapore by McGraw-Hill Financial Singapore Pte. Limited (MHFSPL), which is regulated by the Monetary Authority of Singapore; in Malaysia by Standard & Poor's Malaysia Sdn Bhd ("S&PM"), which is regulated by the Securities Commission; in Australia by Standard & Poor's Information Services (Australia) Pty Ltd ("SPIS"), which is regulated by the Australian Securities & Investments Commission; and in Korea by SPIAS, which is also registered in Korea as a cross-border investment advisory company. The research and analytical services performed by SPIAS, McGraw-Hill Financial Research Europe Limited, MHFSPL, S&PM, and SPIS are each conducted separately from any other analytical activity of Standard & Poor's. Standard & Poor's or an affiliate may license certain intellectual property or provide pricing or other services to, or otherwise have a financial interest in, certain issuers of securities, including exchange-traded investments whose investment objective is to substantially replicate the returns of a proprietary Standard & Poor's index, such as the S&P 500. In cases where Standard & Poor's or an affiliate is paid fees that are tied to the amount of assets that are invested in the fund or the volume of trading activity in the fund, investment in the fund will generally result in Standard &

Standard & Poor's, its affiliates, and any third-party providers, as well as their directors, officers, shareholders, employees, or agents (collectively S&P Parties) do not guarantee the accuracy, completeness or adequacy of this material, and S&P Parties shall have no liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of the information provided by the S&P Parties. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages. Capital IQ is a business of Standard & Poor's.

55555 5-STARS (Strong Buy): Total return is

expected to outperform the total return of a relevant benchmark, by a wide margin over the coming 12 months, with shares rising in price on an absolute basis.

55555 4-STARS (Buy): Total return is expected to

outperform the total return of a relevant benchmark over the coming 12 months, with shares rising in price on an absolute basis.

55555 3-STARS (Hold): Total return is expected to

closely approximate the total return of a relevant benchmark over the coming 12 months, with shares generally rising in price on an absolute basis.

55555 2-STARS (Sell): Total return is expected to

Ratings from Standard & Poor's Ratings Services are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. Standard & Poor's assumes no obligation to update its opinions following publication in any form or format. Standard & Poor's ratings should not be relied on and are not substitutes for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. Standard & Poor's rating opinions do not address the suitability of any security. Standard & Poor's does not act as a fiduciary. While Standard & Poor's has obtained information from sources it believes to be reliable,

Redistribution or reproduction is prohibited without written permission. Copyright 2012 Standard & Poor's Financial Services LLC. STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.

Stock Report | April 20, 2012 | NYS Symbol: BTU

Peabody Energy Corp

Standard & Poor's does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. circulation and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. Advice should be sought from a financial adviser regarding the suitability of an investment, taking into account the specific investment objectives, financial situation or particular needs of any person in receipt of the recommendation, before the person makes a commitment to purchase the investment product. For residents of Malaysia - All queries in relation to this report should be referred to Ching Wah Tam. For residents of Indonesia - This research report does not constitute an offering document and it should not be construed as an offer of securities in Indonesia, and that any such securities will only be offered or sold through a financial institution. For residents of the Philippines - The securities being offered or sold have not been registered with the Securities and Exchange Commission under the Securities Regulation Code of the Philippines. Any future offer or sale thereof is subject to registration requirements under the Code unless such offer or sale qualifies as an exempt transaction. U.S. STARS Cumulative Model Performance Hypothetical Growth Due to Price Appreciation of $100 For the Period 12/31/1986 through 03/31/2012 equities within each STARS category at December 31, 1986 were equally weighted. Thereafter, additions to the composition of the equities in each STARS category are made at the average value of the STARS category at the preceding month end with no rebalancing. Deletions are made at the closing price of the day that the deletion is made. Performance was calculated from inception through March 31, 2003 on a monthly basis. Thereafter, performance is calculated daily. Equities in each STARS category will change over time, and some or all of the equities that received STARS rankings during the time period shown may not have maintained their STARS ranking during the entire period. The model performance does not consider taxes and brokerage commissions, nor does it reflect the deduction of any advisory or other fees charged by advisors or other parties that investors will incur when their accounts are managed in accordance with the models. The imposition of these fees and charges would cause actual performance to be lower than the performance shown. For example, if a model returned 10 percent on a $100,000 investment for a 12-month period (or $10,000) and an annual asset-based fee of 1.5 percent were imposed at the end of the period (or $1,650), the net return would be 8.35 percent (or $8,350) for the year. Over 3 years, an annual 1.5% fee taken at year end with an assumed 10% return per year would result in a cumulative gross return of 33.1%, a total fee of $5,375 and a cumulative net return of 27.2% (or $27,200). Fees deducted on a frequency other than annual would result in a different cumulative net return in the preceding example. The Standard & Poor's 500 index is the benchmark for U.S. STARS. The S&P 500 index is calculated in U.S. dollars and does not take into account the reinvestment of dividends. Indexes are unmanaged, statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index. The S&P 500 index includes a different number of constituents and has different risk characteristics than the STARS equities. Some of the STARS equities may have been included in the S&P 500 index for some (but not necessarily all) of the period covered in the chart, and some such equities may not have been included at all. The S&P 500 excludes ADRs and ADSs. The methodology for calculating the return of the S&P 500 index differs from the methodology of calculating the return for STARS. Past performance of the S&P 500 index is no guarantee of future performance. An investment based upon the models should only be made after consulting with a financial advisor and with an understanding of the risks associated with any investment in securities, including, but not limited to, market risk, currency risk, political and credit risks, the risk of economic recession and the risk that issuers of securities or general stock market conditions may worsen, over time. Foreign investing involves certain risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity and the potential for market volatility and political instability. As with any investment, investment returns and principal value will fluctuate, so that when redeemed, an investor's shares may be worth more or less than their original cost. For residents of Australia This report is distributed by Standard & Poors Information Services (Australia) Pty Ltd ("SPIS") in Australia. The entirety of this report is approved by Peter Willson, who has reviewed and authorised its content as at the date of publication. Any express or implied opinion contained in this report is limited to "General Advice" and based solely on consideration of the investment merits of the financial product(s) alone. The information in this report has not

Standard & Poor's keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of Standard & Poor's may have information that is not available to other Standard & Poor's business units. Standard & Poor's has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

Standard & Poor's Ratings Services did not participate in the development of this report. Standard & Poor's may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of securities or from obligors. Standard & Poor's reserves the right to disseminate its opinions and analyses. Standard & Poor's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via Standard & Poor's publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.

S&P 500 2,400

5 STARS

4 STARS

3 STARS

2 STARS

1 STARS

This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only current as of the stated date of their issue. Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested. Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate. Where an investment or security is denominated in a different currency to the investor's currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. The information contained in this report does not constitute advice on the tax consequences of making any particular investment decision. This material is not intended for any specific investor and does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation of particular securities, financial instruments or strategies to you. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice.

1,600

800

0 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10

This document does not constitute an offer of services in jurisdictions where Standard & Poor's or its affiliates do not have the necessary licenses. For residents of the U.K. - This report is only directed at and should only be relied on by persons outside of the United Kingdom or persons who are inside the United Kingdom and who have professional experience in matters relating to investments or who are high net worth persons, as defined in Article 19(5) or Article 49(2) (a) to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, respectively. For residents of Singapore - Anything herein that may be construed as a recommendation is intended for general

The performance above represents only the results of Standard & Poor's model portfolios. Model performance has inherent limitations. Standard & Poor's maintains the models and calculates the model performance shown, but does not manage actual assets. The U.S. STARS model performance chart is only an illustration of Standard & Poor's (S&P) research; it shows how U.S. common stocks, ADRs (American Depositary Receipts) and ADSs (American Depositary Shares), collectively equities, that received particular STARS rankings performed. STARS categories are models only; they are not collective investment funds. The STARS performance does not show how any actual portfolio has performed. STARS model performance does not represent the results of actual trading of investor assets. Thus, the model performance shown does not reflect the impact that material economic and market factors might have had on decision-making if actual investor money had been managed. Performance is calculated using a time-weighted rate of return. While model performance for some or all STARS categories performed better than the S&P 500 for the period shown, the performance during any shorter period may not have, and there is no assurance that they will perform better than the S&P 500 in the future. STARS does not take into account any particular investment objective, financial situation or need and is not intended as an investment recommendation or strategy. Investments based on the STARS methodology may lose money. High returns are not necessarily the norm and there is no assurance that they can be sustained. Past model performance of STARS is no guarantee of future performance. For model performance calculation purposes, the

Redistribution or reproduction is prohibited without written permission. Copyright 2012 Standard & Poor's Financial Services LLC. STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.

Stock Report | April 20, 2012 | NYS Symbol: BTU

Peabody Energy Corp

been prepared for use by retail investors and has been prepared without taking account of any particular person's financial or investment objectives, financial situation or needs. Before acting on any advice, any person using the advice should consider its appropriateness having regard to their own or their clients' objectives, financial situation and needs. You should obtain a Product Disclosure Statement relating to the product and consider the statement before making any decision or recommendation about whether to acquire the product. Each opinion must be weighed solely as one factor in any investment decision made by or on behalf of any adviser and any such adviser must accordingly make their own assessment taking into account an individual's particular circumstances. SPIS holds an Australian Financial Services Licence Number 258896. Please refer to the SPIS Financial Services Guide for more information at www.fundsinsights.com.au.

Redistribution or reproduction is prohibited without written permission. Copyright 2012 Standard & Poor's Financial Services LLC. STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.