Coal Pricing Risk The Company predominantly manages its commodity price risk for its non-trading, long-term coal contract portfolio through the use of long-term coal supply agreements (those with terms longer than one year) to the extent possible, rather than through the use of derivative instruments. As of June 30, 2026, the Company had approximately 94 million tons of U.S. thermal coal priced and committed for 2026. This includes approximately 81 million tons of PRB coal and 13 million tons of Other U.S. Thermal coal. The Company has the flexibility to increase volumes should demand warrant. Peabody is estimating full year 2026 thermal coal sales volumes from its Seaborne Thermal segment of 12.4 million to 13.0 million tons comprised of thermal export volume of 7.9 million to 8.5 million tons and domestic volume of 4.5 million tons. Peabody is estimating full year 2026 metallurgical coal sales from its Seaborne Metallurgical segment of 8.8 million to 10.3 million tons. Sales commitments in the metallurgical coal market are typically not long-term in nature, and the Company is therefore subject to fluctuations in market pricing. The Company’s sensitivity to market pricing in thermal coal markets is dependent on the duration of contracts. As of June 30, 2026, the Company had no coal derivative contracts related to its forecasted sales. Historically, such financial contracts have included futures and forwards. 50 Table of Contents Foreign Currency Risk The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures. The accounting for these derivatives is discussed in Note 6. “Derivatives and Fair Value Measurements” to the accompanying unaudited condensed consolidated financial statements. As of June 30, 2026, the Company held average rate options with an aggregate notional amount of $537.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending March 31, 2027. As of June 30, 2026, the Company also held purchased collars with an aggregate notional amount of $524.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending March 31, 2027. Assuming the Company had no foreign currency hedging instruments in place, its exposure in operating costs and expenses due to a $0.10 change in the Australian dollar/U.S. dollar exchange rate is approximately $220 million to $230 million for the next twelve months. Based upon the Australian dollar/U.S. dollar exchange rate at June 30, 2026, the currency option contracts outstanding at that date would limit the Company’s exposure to approximately $178 million with respect to a $0.10 increase in the exchange rate, while the Company would benefit by approximately $195 million with respect to a $0.10 decrease in the exchange rate for the next twelve months. Although Peabody believes its Australian dollar monetary asset position acts as a partial hedge to lessen the impact on its results from operations, the Company may continue to use options and collars to hedge its cash flow exposure to currency risk associated with anticipated Australian dollar operating expenditures. Diesel Fuel Price Risk The Company expects to consume 95 to 105 million gallons of diesel fuel during the next twelve months. A $10 per barrel change in the price of crude oil (the primary component of a refined diesel fuel product) would increase or decrease its annual diesel fuel costs by approximately $24 million based on its expected usage. As of June 30, 2026, the Company did not have any diesel fuel derivative instruments in place. The Company partially manages the price risk of diesel fuel through the use of cost pass-through contracts with certain customers. Interest Rate Risk Peabody’s objectives in managing exposure to interest rate changes are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. Peabody is primarily exposed to interest rate risk as a result of its interest-earning cash balances. Peabody’s interest-earning cash and restricted cash balances are primarily held in deposit accounts and investments with maturities of three months or less. Therefore, these balances are subject to interest rate fluctuations and could produce less income if interest rates fall. Based upon its interest-earning cash and restricted cash balances at June 30, 2026, a one percentage point decrease in interest rates would result in a decrease of approximately $9 million to interest income for the next twelve months.