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0000950137-09-002111.txt : 200903230000950137-09-002111.hdr.sgml : 2009032320090323124158ACCESSION NUMBER:0000950137-09-002111CONFORMED SUBMISSION TYPE:8-KPUBLIC DOCUMENT COUNT:28CONFORMED PERIOD OF REPORT:20090323ITEM INFORMATION:Regulation FD DisclosureITEM INFORMATION:Financial Statements and ExhibitsFILED AS OF DATE:20090323DATE AS OF CHANGE:20090323

FILER:

COMPANY DATA:COMPANY CONFORMED NAME:PEABODY ENERGY CORPCENTRAL INDEX KEY:0001064728STANDARD INDUSTRIAL CLASSIFICATION:BITUMINOUS COAL & LIGNITE SURFACE MINING [1221]IRS NUMBER:134004153STATE OF INCORPORATION:DEFISCAL YEAR END:1231

FILING VALUES:FORM TYPE:8-KSEC ACT:1934 ActSEC FILE NUMBER:001-16463FILM NUMBER:09698236

BUSINESS ADDRESS:STREET 1:701 MARKET STCITY:ST LOUISSTATE:MOZIP:63101-1826BUSINESS PHONE:3143423400

MAIL ADDRESS:STREET 1:701 MARKET STCITY:ST LOUISSTATE:MOZIP:63101-1826

FORMER COMPANY:FORMER CONFORMED NAME:P&L COAL HOLDINGS CORPDATE OF NAME CHANGE:19980623

8-K1c50134e8vk.htmFORM 8-K

e8vk

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) March23, 2009

PEABODY ENERGY CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

1-16463

13-4004153

(State or other jurisdiction of

(Commission File Number)

(I.R.S. Employer Identification No.)

incorporation or organization)

701 Market Street, St. Louis, Missouri

63101-1826

(Address of principal executive offices)

(Zip Code)

Registrants telephone number, including area code (314)342-3400

N/A
(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 thefollowing provisions:

oWritten communications pursuant to Rule425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item7.01. RegulationFD Disclosure.

On March23, 2009, Peabody Energy Corporation (Peabody) management will address investors at theHoward Weil 37th Annual Energy Conference in New Orleans, Louisiana. A related writtenpresentation is furnished as Exhibit99.1 hereto.

Item9.01. Financial Statements and Exhibits.

(d)Exhibits.

Exhibit No. Description of Exhibit

99.1

Peabody written presentation dated March23, 2009.

2

SIGNATURES

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

PEABODY ENERGY CORPORATION

March 23, 2009 By: /s/ Kenneth L. Wagner

Name: Kenneth L. Wagner

Title: Vice President, Assistant General Counsel
and Assistant Secretary

3

EXHIBIT INDEX

Exhibit No. Description of Exhibit

99.1

Peabody written presentation dated March23, 2009.

4

EX-99.12c50134exv99w1.htmEX-99.1

exv99w1

Exhibit 99.1

HOWARD WEIL

37th ANNUAL ENERGY CONFERENCE

Rick Navarre

President

March 23, 2009

Statement on

Forward-Looking Information

Some of the following information contains forward-looking statements within the meaning of Section 27A of theSecurities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, and is intended to comewithin the safe-harbor protection provided by those sections.

Our forward-looking statements are based on numerous assumptions that the company believes are reasonable, butthey are open to a wide range of uncertainties and business risks that may cause actual results to differ materially fromexpectations as of Jan. 27, 2009. These factors are difficult to accurately predict and may be beyond the company'scontrol. The company does not undertake to update its forward-looking statements. Factors that could affect thecompany's results include, but are not limited to: the duration and severity of the global economic downturn anddisruptions in the financial markets; our ability to renew sales contracts; reductions of purchases by major customers;credit and performance risk associated with customers, suppliers, trading and banks and other financial counterparties;transportation availability, performance and costs including demurrage; the availability, timing of delivery and cost ofkey supplies, capital equipment and commodities; geologic, equipment and operational risks associated with mining;impact of weather on demand, production and transportation; legislative and regulatory developments, includingmercury and carbon dioxide-related limitations; our ability to replace coal reserves; liquidity and access to capital;labor availability and relations; the effects of acquisitions or divestitures; the outcome of pending or future litigation;coal and power market conditions; availability and costs of competing energy resources; risks associated with our BtuConversion initiatives; global currency exchange and interest rate fluctuation; wars and acts of terrorism or sabotage;political risks, including expropriation; and other risks detailed in the company's reports filed with the Securities andExchange Commission. The use of "Peabody," "the company," and "our" relate to Peabody, its subsidiaries andmajority-owned affiliates.

EBITDA or Adjusted EBITDA is defined as income from continuing operations before deducting early debtextinguishment costs, net interest expense, income taxes, minority interests, asset retirement obligation expense anddepletion, depreciation & amortization. For a reconciliation of EBITDA (or Adjusted EBITDA), a non-GAAP measure, toincome from continuing operations before income taxes and minority interests, the most comparable GAAP measure,please see PeabodyEnergy.com and the company's documents filed with the SEC.

1/27/09

BTU: The Only Global

Pure-Play Coal Investment

Strategic actions have led to a 2008performance that reveals the power ofPeabody's global platform

The ultimate market rebound may bestronger than expected due to long-termdemand and lack of investment

BTU is uniquely suited to benefit

from industry fundamentals both in the nearand long term

Three Key Takeaways

4

Global Coal Markets Impacted

by Global Economic Downturn

YTD global steel production (excludingChina) 37% lower than last year; likely

20 - 25% decline for 2009

U.S. steel production >50% below

year-ago levels; potential 25 - 30%

pull-back for 2009

Global generation growth cut to 2.7%

in 2008; flat/slightly lower for 2009

U.S. generation running 3.5% lower

than last year; moderating to ~2%

decline by year-end

U.S. exports to Europe slow

Declining natural gas prices create cases

of lower coal burn in U.S. and Europe

Sharp Rebound Likely

When Markets Recover

Significant demand from electricity use by

emerging nations

Geology, permitting and safety compliancechallenges in certain high-cost regions

Financing will be an industry challenge

Lack of investment during financial crisis likelyto lead to even stronger rebounds

Challenging markets lead to improvedacquisition environment

6

Global Coal Supply-Demand:

Swift Response to Rebalance

2008 Seaborne Met Demand

(Tonnes in Millions)

Pacific 129

Atlantic 82

211

2008 Seaborne Thermal Demand

(Tonnes in Millions)

Pacific 381

Atlantic 224

605

2009 SEABORNE MET

Potential Demand Cuts

Steel Production (35 - 45)

Announced Supply Cuts

Announced/Planned Cuts (45 - 50)

From More Than 75% of

Seaborne Supply Base

2009 SEABORNE THERMAL

Demand On Par/Slightly Lower

than 2008

Announced Supply Cuts

Announced Cuts (~2)

Source: Industry and company reports, Peabody analysis. Values in millions of metric tons. Seaborne met includes ~12 million tonnes of announcedU.S. met coal reductions and 5 - 10 million tonnes of met-to-thermal coal shift. Updated Mar. 20, 2009.

7

Global Coal Supply-Demand:

Swift Response to Rebalance

2009 U.S. COAL

Potential Demand Cuts

Generation/Industrial (35 - 50)

Low Natural Gas (15 - 25)

Reduced Exports (25 - 30)

Stockpiles ( 5 - 10)

Total (80 - 115)

Announced Supply Cuts

Announced Cuts From (55 - 60)

More Than Half of U.S.

Production Base

2008 U.S. Coal Metrics

(Tons in Millions)

Consumption: 1,121

Exports: 81

Thermal: 39

Met: 42

Production: 1,172

Imports: 34

Stockpiles: 165

Source: Industry and company reports, Peabody analysis. Values in millions of short tons. Demand cuts assume GDP decline of 2.0% to 3.0%; Naturalgas assumptions based on 2009 prices in the $4.00 to $5.00 range. Assumes stockpile build due to reduced demand. Includes ~13 million tons ofannounced U.S. met coal reductions. Updated Mar. 20, 2009.

8

China Continues to Reduce Exports

While India Increases Imports

China thermal coal exports decline21% in 2008; down 42% YTD

18% fewer export licenses issuedyear-to-date 2009

January-February coal productionon par with year-ago levels

Signs of growing coal imports

India the world's fastest-growing

coal importer

Domestic production to besignificantly short of demand

by 2011 - 2012

Coal and Oil Group of India:thermal imports to more than tripleover 4 years (2008 - 2012)

China and India Represent Nearly Half of Global Coal Demand

Source: International Energy Agency, World Energy Outlook 2008; industry reports.

Compound Annual

Growth Rate

0.6%

1.7%

2.9%

2.9%

5.1%

Coal Continues to be

the World's Fastest Growing Fuel

Six-Year Change in Global Energy Consumption

Source: BP Statistical Review of World Energy, June 2008. Coal Natural Gas Hydro Oil Nuclear 2002 - 2004 35.15 19.02 18.93 10.53 3.51

35%

2001 - 2007 Change

19%

11%

19%

4%

Coal

Natural Gas

Oil

Hydro

Nuclear

Seaborne Coal Demand Grew 7% Annually

International Energy Agency Projects

61% Growth in Global Coal Use by 2030

Source: International Energy Agency, World Energy Outlook 2008.

Global Coal Plant Buildout: 200 GW UnderConstruction; 700 MTPA of Coal Use

30 Units in U.S. Under Construction Requiring 70 MTPA of Coal

The 1,600 MWPrairie StateEnergy Campusis underconstruction inSouthern Illinois

Includes units under construction and newly completed for 2009.

Obama Administration: Coal is "A GreatResource"; More Funding Proposed

"Coal is a vital resourcein our country. Itprovides about 50% ofour electricity."

Recent Poll: 72% of Opinion Leaders Support Use of Coal

"The coal resources inthe United States areimmense. I am hopefuland optimistic we canuse those resources in aclean way. It's really aquestion of technology.I think we will be usingthat great naturalresource."

"We'll invest intechnology that will allowus to use more coal,America's most abundantenergy source, with thegoal of creating five first-of-a-kind coal-fireddemonstration plants withcarbon capture andsequestration."

PresidentBarack Obama

Secretary of EnergySteven Chu

EPA AdministratorLisa Jackson

Source: President Obama: Aug. 4, 2008 speech in Lansing, Mich.; Secretary of Energy Chu: Jan. 13, 2009 Senate Energy and Natural Resources

Committee hearing; EPA Administrator Jackson: Jan. 14, 2009 Senate Committee on the Environment and Public Works hearing.

13

Economic Stimulus ProvidesUnprecedented Clean Coal Support

$3.4 billion for fossil fuel

$1.0 billion for R&D

(potentially FutureGen)

$800 million for Clean

Power Initiative

$1.5 billion for industrial

CCS demo projects

Carbon storage tax credits

$20/tonne CO2 credit for

deep permanent storage

$10/tonne CO2 credit

for enhanced oil recovery

$11 billion for transmission

upgrades benefits coal-by-wire

Support for electric car R&D

The U.S. stimulus package also providestax credits encouraging electric cardeployment that could lead to additionalelectricity demand growth

14

Coal Markets Summary

Coal Remains World's Largest and

Fastest-Growing Fuel

Coal Markets Impacted by Global EconomicDownturn but Global Supply Cuts Significant

Markets Showing Some Early Positive Signs

Lack of Investment Likely to Drive Sharp Rebound

Clean Coal Technologies Pave the Way for

Lower-Carbon Future

15

Peabody is the Largest

Private-Sector Coal Company

Rio Tinto

BHP

Arch

Anglo-American

Consol

Xstrata

Foundation

Massey

Alpha Natural

Resources

International Coal

Source: Company reports and websites, SEC filings and Peabody analysis. Values are on a short-ton basis.

Annual Sales (Tons in Millions)

Reserves (Tons in Billions)

Patriot

16 2004 2005 2006 2007 2008 2763 3597.9 4050.9 4545.1 6593.4

2004 2005 2006 2007 2008 490.1 696.4 911 968.6 1847.3

Peabody: Strong Track Record of Results 2004 2005 2006 2007 2008 200.3 213.7 221.4 236.1 255.5

EBITDA

In millions. Reflects results from continuing operations. Sales volumes unaudited.

Revenues

Sales Volume

Tons Sold

256

$6,593

$1,847

17

Revenue 45%

EBITDA 91%

Operating Profit 135%

EPS 122%

Operating Cash Flow 209%

BTU: Performance Sets Records

in All Financial Metrics

Available Liquidity of ~$2 Billion

Operating Cash Flow of $1.41 Billion

Dollars in millions except EPS. Values represent continuing operations.

18 2003 2004 2005 2006 2007 2008 EBITDA ($ in Millions) 422 490 696 911 969 1847

Peabody's EBITDA and Share Price

Sharply Diverge in 2008

Share Price ($)

Peabody values reflect 30-day moving average, the March 2005 and February 2006 2-for-1 stock splits and discontinued operations

including the 2007 Patriot Coal spin-off.

1st Qtr 2nd Qtr 52 48

19

BTU Advantage: Global Platform

Offers Growing and Diverse Earnings 1st Qtr 2nd Qtr 1 99

2003

International EBITDA Share Grows to +50% in 2008

2008

United States

International 1st Qtr 2nd Qtr 21 79

2007

$422 Million

$969 Million

$1.85 Billion

Values represent continuing operations.

20

BTU's Australia Platform Well-Positioned

to Serve Strongest Growth Markets

Lower average production costs

Significant mine-to-port rail advantage

Expanded reach to Atlantic markets due to low

freight rates

Higher geologic predictability

Larger reserve base of high-quality hard

coking coals

Longer-lived reserves versus CAPP decline

Australia's Major Advantage Over Central Appalachia

21

Short tons in millions. Updated Jan. 27, 2009.

BTU Australia: Location Advantage,Earnings Diversity, Growth Capability

Peabody's 2009 Australian Sales: 22 - 24 Million Tons Seaborne Thermal Domestic Seaborne Met Australia 10 6 7

~ 6 MT

Domestic

~10 MT

Seaborne

Thermal

6 - 8 MT

Seaborne

Met

3.0 - 4.0 High-QualityHard

1.5 - 2.0 Hard

1.5 - 2.0 Semi-Hard,PCI

Seaborne Met

Unpriced volumes:

2009: 4 - 5 MT

2010: 7 - 8 MT

Cutting up to 2 MT of

2009 met

Seaborne Thermal

Unpriced volumes:

2009: 5 - 6 MT

2010: 10 - 11 MT

3.5 MT of legacy contractsreprice in 2009

22

BTU Focus Areas for 2009

Continue focus on strong cost

control and productivity

Record safety year in 2008

Stable U.S. costs for last three quarters

Increase contributions from

high-margin operations

Exercise tight capital discipline

Evaluate opportunistic acquisitionsamid distressed markets

Pursue global trading, infrastructureand joint venture opportunities

U.S. Production: 2009 Sold Out and 2010 75% Priced

23

Developing Largest Eastern U.S. SurfaceMine to Serve Customer Commitments

Revenues of nearly

$6 billion over time

90 million tons ofproduction secured

by long-term customeragreements

Production begins

mid-year 2009

Capital investment of

$350 - $400 million

Exploring similartransactions to securelong-term business

Peabody's 8 Million Ton Bear Run Mine

Indiana

Peabody: A Global Leader in

Btu Conversion and Clean Coal Solutions

Only non-Chineseequity partner inGreenGen, China'scenterpiece coal /climate initiative

Partnering withConocoPhillips

on new coal-

to-natural gas

facility in

Kentucky

GreatPoint

Energy to

develop

coal-to-gas

plants

*

Shengli 3

Advancing InnerMongolian

mine and

coal-to-methanolconversionproject

Continue as a Global Leader in Clean Coal Solutions

Kentucky NewGas

Peabody Uniquely Positioned

Within Coal Industry for Success

Broad global diversity

Serving major long-term demand growth inemerging nations

Able to avoid geology, permitting and

compliance issues in high-cost regions

Leading trading position

Not challenged by liquidity or inability to

access capital

Able to be opportunistic in acquisitions

during challenging markets

Strength

BTU Peers

BTU: The Only Global Pure-Play Coal Investment

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HOWARD WEIL

37th ANNUAL ENERGY CONFERENCE

Rick Navarre

President

March 23, 2009

GRAPHIC3c50134c50134z0001.gifGRAPHIC

begin 644 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