Peabody Energy

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Date Submitted: 11/07/2011 09:02 AM

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Peabody Energy (BTU)

1. Range 63.11 - 64.57 |

2. 52 week 34.89 - 73.95 |

3. Open 64.49 |

4. Vol / Avg. 605,774.00/4.48M |

5. Mkt cap 17.09B |

6. P/E 22.11 |

7. Div/yield 0.09/0.54 |

8. EPS 2.86 |

9. Shares 270.60M |

10. Beta 1.34 |

11. Inst. own 84% |

Sector: Energy

Industry: Coal

Recommendation: Buy

Competition

Arch Coal

Consol Energy Incorporated

BHP Billiton LTD

In the past year, Peabody has expanded its coal trading activities in the United States, Europe, Australia, China, Indonesia, South Africa and South America, and opened trading offices in Jakarta and Singapore

Facts about the industry

*

* Coal power produced 49.7% of the U.S. electricity supply in 2005 (Energy Information Administration);

* A plant brought online in 2015, using today's technology without carbon capture and sequestration, is expected to produce power for about 5.31 cents per kilowatt hour (Energy Information Administration);

* The U.S. has demonstrated coal reserves of approximately 496 billion tons of coal (more than any other country in the world), half of which is mineable with existing technologies (Energy Information Administration);

* Consumption of coal worldwide is expected to increase 71% between 2004 and 2030, driven by developing countries that use coal to generate about 75% of their power (International Energy Agency). China, for example, constructs a new coal plant on an average on one-plant-per-week;

* The Environmental Protection Agency estimates that coal-to-liquids technologies with carbon capture and storage would result in a 4% increase in greenhouse gas emissions compared to petroleum, and a 119% increase if the carbon is NOT captured and stored.

Pros of Use

* Coal is readily available in the U.S., with over 250 years of reserves available at current consumption rates (Energy Information Administration);

* The price of coal is...