1. Peabody Energy, World’s Largest Private Coal Company, Files for Bankruptcy April 13, 2016 | Ben Booker Source: Tiffany Kary, Tim Loh, and Jim Polson, “Coal Slump Sends Mining Giant Peabody Energy Into Bankruptcy,” Bloomberg News, April 13, 2016. PEABODY BANKRUPTCY ■ Debts ■ Assets Amount of Debt and Assets Peabody Possesses in Billions of Dollars

2. Peabody Energy’s Revenues Have Been Declining Following National Trend of Coal Industry April 13, 2016 | Ben Booker Source: Charles Riley and Chris Isidore, “The Largest U.S. Coal Company Just Filed For Bankruptcy,” CNN Money, April 13, 2016; EIA, “Total Energy Production,” March 2016. PEABODY BANKRUPTCY Amount of Peabody Energy Revenue in Billions of Dollars State of U.S. Coal Industry: General Decline Coal producers accounting for 45% of U.S. coal output have filed for bankruptcy since 2014 27% decline in electricity generation from coal sources in the past five years Coal accounted for 30% of primary energy production, but now is about 20-23% of total U.S. primary energy production

3. Peabody Energy Cites Low Chinese Demand, Cheap Natural Gas, and Regulations As Precipitating Bankruptcy PEABODY BANKRUPTCY April 13, 2016 | Ben Booker Source: Timothy Cama, “World’s Largest Coal Company Files For Bankruptcy,” The Hill, April 13, 2016; Alex Waza, “The White House,” Noun Project, April 13, 2016; EPA, “Mercury and Air Toxic Standards,” March 3, 2016; Timothy Cama, “Obama Halts New Federal Coal Mining”, The Hill, January 15, 2016; Katharine Conlon, “Clean Power Plan Primer,” National Journal; The Guardian, “China Coal Consumption Drops Again,” February 29, 2016. ReasonDetails Lower Chinese demand China’s economy has slowed in the past couple of years from an average growth rate of 10% to a little less than 7% China is facing massive steel glut, which is lowering demand for coal in manufacturing China’s overall economy is shifting away from energy intensive industry Greater competition from cheap natural gas Hydraulic fracturing and cheaper techniques have lowered natural gas production and caused a boon in natural gas production Coal’s lower electricity generation and energy production has been made up by natural gas Increasing Government Regulations EPA issued stringent Mercury and Air Toxic Standards, which lowered how much mercury coal plants could produce President Obama has passed Clean Power Plan, which would regulate carbon emissions increasing costs for coal power plants In January, Bureau of Land Management announced moratorium on federal leases for coal production on federal land Main Reasons for Peabody Energy’s Bankruptcy