Current assets:

Cash and cash equivalents

Restricted cash

Successor Notes issuance proceeds - restricted cash

Accounts receivable, net

Inventories

Assets from coal trading activities, net

Other current assets

Total current assets

Property, plant, equipment and mine development, net

Investments and other assets

Total assets

Current portion of long-term debt

Liabilities from coal trading activities, net

Accounts payable and accrued expenses

Total current liabilities

Long-term debt, less current portion

Deferred income taxes

Asset retirement obligations

Accrued postretirement benefit costs

Other noncurrent liabilities

Total liabilities not subject to compromise

Liabilities subject to compromise

Total liabilities

Stockholders’ Equity:

Common stock

Preferred Stock

Additional paid-in capital in excess of par value

Accumulated deficit

Accumulated other comprehensive loss

Treasury stock

Peabody Energy Stockholders’ equity

Noncontrolling interest

Total stockholders’ equity

Total liabilities and stockholders’ equity

Total Revenues

Operating Costs & Expenses

Depreciation, Depletion & Amortization

Asset Retirement Obligation Expense

Selling and Administrative Expenses

Other Operating (Income) Loss:

Net Gain on Disposal or Exchange of Assets

Asset Impairment

Loss (Income) From Equity Affiliates

Operating Profit

Interest Expense

Interest Income

Reorganization Items, net

Income From Continuing Operations Before Taxes

Income Tax Provision

Income From Continuing Operations, Net of Taxes

Loss from Discontinued Operations

Net Income

Less: Net Income Attributed to Noncontrolling Interests

Preferred Dividend

Net Income Attributable to Common Shareholders

Loss from continuing operations

Basic loss per share

Diluted loss per share

Net loss per share

Basic loss per share

Diluted loss per share

Total Revenues

Operating Costs & Expenses

Depreciation, Depletion & Amortization

Asset Retirement Obligation Expense

Selling and Administrative Expenses

Restructuring Charges

Other Operating (Income) Loss:

Net Gain on Disposal or Exchange of Assets

Asset Impairment

Income From Equity Affiliates

Operating Profit

Interest Expense

Loss on Debt Extinguishment

Interest Income

Reorganization Items, Net

Income From Continuing Operations Before Taxes

Income Tax Benefit

Income From Continuing Operations, Net of Taxes

Loss from Discontinued Operations

Net Loss

Less: Net Income Attributed to Noncontrolling Interests

Preferred Dividend

Net Loss Attributable to Common Shareholders

Loss from continuing operations

Basic loss per share

Diluted loss per share

Net loss per share

Basic loss per share

Diluted loss per share

Cash and cash equivalents. Adjustments of $3.0 million that reflect the sources and use of cash at emergence:

Proceeds from issuance of equity

Proceeds from issuance of debt

Return of restricted cash

Repayment of first lien claims

Repayment of second lien claims

Financing fees

Professional fees

Other current assets. Adjustment of $18.1 million to write off deferred financing costs associated with debt cancellation and discharge of the related debt obligations.

Investments and other assets. Adjustment of $3.4 million reflects the payment of certain deferred financing costs.

Long-term debt. Adjustments reflect the issuance of $1.95 billion of new long-term debt, net of estimated deferred financing costs, as contemplated by the Plan. The Plan contemplates the issuance of $1.0 billion of Successor Notes, net of $49.5 million of deferred financing costs, and the Company entering into a credit agreement that provides for a $950 million senior secured term loan, net of $37.3 million of deferred financing costs. At March 31, 2017, the Successor Notes, net of deferred financing costs, were already included on the Company’s unaudited condensed consolidated balance sheet as reported.

Accounts payable and accrued expenses. Adjustment of $308.4 million related to certain fees, expenses, and claims related to the Chapter 11 Cases paid subsequent to emergence from the Chapter 11 Cases. Of this amount, $215.3 million is related to the settlement of secured and unsecured claims and $93.1 million is related to the payment of professional fees.

Liabilities subject to compromise. This adjustment includes the settlement of liabilities that were subject to compromise. These liabilities include unsecured and under-secured liabilities incurred prior to the Chapter 11 filing and consist of the following:

Debt

Interest payable

Environmental liabilities

Trade payables

Postretirement benefit obligations

Other accrued liabilities

Peabody Energy Stockholders’ equity. These adjustments include equity issuances on the Plan Effective Date as contemplated by the Plan, including 71.0 million common shares, par value $0.01 per share, warrants to purchase 6.2 million common shares at an exercise price of $0.01 per warrant, and 30.0 million preferred shares, par value $0.01 per share, that are convertible into 46.2 million common shares prior to giving effect to three years of guaranteed paid-in-kind dividends. Each preferred share is convertible, at the holder’s election or upon the occurrence of certain triggering events, to common shares at a 35% discount relative to the initial per share purchase price of $25.00 and provides for three years of guaranteed dividends, payable semiannually, at a rate of 8.5% per annum. The value ascribed to the common shares, warrants and preferred shares is based on a pro-rata allocation of the total equity value of $3.105 billion reflected in the Plan to each instrument assuming exercise of the warrants and conversion of the preferred shares, including guaranteed dividends. The adjustments to additional paid in capital represent the total equity value of $3.105 billion reflected in the Plan, less estimated issuance costs of $24 million, the par value prescribed to the common shares and the fair value allocated to the preferred shares. The adjustment to accumulated deficit reflects the total gain on settlement of claims.

Inventories. For purposes of the unaudited pro forma condensed consolidated financial statements, preliminary fair value of our inventory has been determined based on currently available information and certain assumptions, and may be different from the final estimate of fair value, and the difference could be material. Net adjustment of $94.0 million to increase the value of coal inventories to their estimated fair value, less costs to sell the inventories.

Property, plant, equipment and mine development, net. The fair value of property, plant, equipment and mine development, net is estimated based on either a review and analysis of several recent transactions in our industry or a calculation of the present value of future cash flows based on our projections. Net adjustments of $3.7 billion to reduce the net book value of property, plant, equipment and mine development, net to their estimated fair value. The preliminary estimates of the fair value of our property, plant and equipment and the associated depletion and depreciation expense included in the pro forma condensed consolidated financial statements could be different from the final values determined through fresh start reporting, and the difference could be material.

Investments and other assets. As part of fresh start reporting, identifiable intangible assets are required to be measured at fair value. Adjustment of $256.4 million made primarily to recognize the fair value of certain coal supply agreements by comparing the contract price with estimated market price for the same coal product. The intangible asset related to coal supply agreements will be amortized on a per ton shipped basis through 2025, predominately over the next three years.

Accounts payable and accrued expenses. As part of fresh start reporting, identifiable intangible liabilities are required to be measured at fair value. Adjustment of $11.6 million is primarily based on the value of certain contract-based intangibles primarily consisting of unutilized capacity of certain port and rail take-or-pay contracts.

Asset retirement obligations. For purposes of the unaudited pro forma condensed consolidated financial statements, asset retirement obligations will be restated to fair value. The estimates are based on the discounted cash flows of projected spending to reclaim the properties used in our operations. These estimates will change in the future and the change could be material.

Other noncurrent liabilities. As part of fresh start reporting, identifiable intangible liabilities are required to be measured at fair value. Adjustment of $64.1 million is primarily based on the value of certain contract-based intangibles primarily consisting of unutilized capacity of certain port and rail take-or-pay contracts. The intangible liabilities related to port and rail take-or-pay contracts will be amortized ratably over the terms of each contact, which range in duration through 2043.

Peabody Energy stockholders’ equity. The adoption of fresh start reporting will result in a new reporting entity with no beginning retained earnings or accumulated deficit. All common stock of the predecessor company will be eliminated and replaced by the new equity structure of the Plan. For purposes of the unaudited pro forma condensed consolidated financial statements, common stock and preferred stock will be restated to their estimated fair value

Noncontrolling interests. Adjustment of $80.9 million to increase the value of noncontrolling interests to its estimated fair value based on an estimate of the rights to the assets of the noncontrolling interests.

Operating costs and expenses. Adjustments include:

the increase in operating costs of $39.1 million for the year ended December 31, 2016 associated with the realization of the increased coal inventory value, as discussed above, into earnings;

the elimination of excess take-or-pay charges of $5.6 million and $70.3 million for the three months ended March 31, 2017 and the year ended December 31, 2016, respectively, that would be recorded at the adoption of fresh start reporting;

the elimination of the amortization of actuarial losses and prior services costs of $6.9 million and $24.5 million for the three months ended March 31, 2017 and the year ended December 31, 2016, respectively, due to the release of all balances within accumulated other comprehensive loss as a result of the adoption of fresh start reporting;

the elimination of the impact of prior cash flow hedge and related accounting of $27.7 million and $232.2 million for the three months ended March 31, 2017 and the year ended December 31, 2016, respectively, due to the release of all balances within accumulated other comprehensive loss as a result of the adoption of fresh start reporting; and

an estimated adjustment of $6.5 million and $21.9 million for the three months ended March 31, 2017 and the year ended December 31, 2016, respectively, for a change in accounting policy related to the capitalization of certain expenditures which extend the useful lives of existing plant and equipment that were not previously capitalized.

Depreciation, depletion and amortization. The adjustments reflect the reduced expense for the estimated impact on depreciation, depletion and amortization for the fair value adjustment for property, plant and equipment, as discussed above, partially offset by the increased expense for the estimated impact of amortization of contract based intangibles associated with certain coal supply agreements over an average agreement life of approximately three years, as discussed above.

Asset retirement obligation expense. This adjustment primarily reflects the increased accretion expense and increased amortization expense associated with the adjustment to the asset retirement obligations discussed above and the corresponding adjustment to the asset retirement obligations asset.

Selling and administrative expenses. The adjustment is to eliminate the costs incurred during the year ended December 31, 2016 associated with debt restructuring activities since these costs would not continue after emergence from the Chapter 11 Cases.

Net gain on disposals or exchange of assets and asset impairment. Due to the adoption of fresh start reporting, which requires that all items be adjusted to fair value, gains on asset disposals and asset impairments have been eliminated as the items would have been remeasured to fair value resulting in no such items being realized into earnings.

Interest expense and loss on debt extinguishment. This adjustment reflects the elimination of interest expense associated with the predecessor company’s capital structure, including the 2016 loss on extinguishment of the predecessor’s Superpriority Secured Debtor-in-Possession Credit Agreement, and reflects the estimated interest expense associated with the capital structure as contemplated in the Plan with an assumed weighted average interest rate of approximately 6%. Interest expense also reflects the amortization of deferred financing costs and costs associated with surety bonds.

Reorganization items, net. This adjustment reflects the elimination of these items as they would not occur subsequent to emergence from the Chapter 11 Cases.

Income tax benefit. Reflects the after tax effects of the adjustments in the pro forma condensed consolidated statements of operations.

Preferred dividend. Reflects 8.5% assumed dividend rate per annum, payable semiannually in kind as a dividend of additional shares of preferred equity.