1064728--2/24/2010--PEABODY_ENERGY

related topics

{cost, regulation, environmental}

{customer, product, revenue}

{debt, indebtedness, cash}

{cost, contract, operation}

{gas, price, oil}

{provision, law, control}

{loss, insurance, financial}

{operation, international, foreign}

{cost, operation, labor}

{regulation, change, law}

{personnel, key, retain}

{stock, price, share}

If a substantial number of our long-term coal supply agreements terminate, our revenues and operating profits could suffer if we are unable to find alternate buyers willing to purchase our coal on comparable terms to those in our contracts. The loss of, or significant reduction in, purchases by our largest customers could adversely affect our revenues. Our ability to collect payments from our customers could be impaired if their creditworthiness deteriorates. Risks inherent to mining could increase the cost of operating our business. If transportation for our coal becomes unavailable or uneconomic for our customers, our ability to sell coal could suffer. A decrease in the availability or increase in costs of key supplies, capital equipment or commodities such as diesel fuel, steel, explosives and tires could decrease our anticipated profitability. An inability of trading, brokerage, mining or freight sources to fulfill the delivery terms of their contracts with us could reduce our profitability. Our hedging activities may expose us to earnings volatility and other risks. Our ability to operate our company effectively could be impaired if we lose key personnel or fail to attract qualified personnel. We could be negatively affected if we fail to maintain satisfactory labor relations. Our mining operations could be adversely affected if we fail to appropriately secure our obligations. Our mining operations are extensively regulated, which imposes significant costs on us, and future regulations and developments could increase those costs or limit our ability to produce coal. If the assumptions underlying our asset retirement obligations for reclamation and mine closures are materially inaccurate, our costs could be significantly greater than anticipated. Our future success depends upon our ability to continue acquiring and developing coal reserves that are economically recoverable. Growth in our global operations increases our risks unique to international mining and trading operations. Risks Associated with Our Indebtedness We could be adversely affected by the failure of financial institutions to fulfill their commitments under our Senior Unsecured Credit Facility. Our financial performance could be adversely affected by our debt. The covenants in our Senior Unsecured Credit Facility and the indentures governing our Senior Notes and Debentures impose restrictions that may limit our operating and financial flexibility. The conversion of our Debentures may result in the dilution of the ownership interests of our existing stockholders. Provisions of our Debentures could discourage an acquisition of us by a third-party. Under certain circumstances, we could be responsible for certain federal and state black lung occupational disease liabilities assumed by Patriot in connection with its 2007 spin-off from us. Our expenditures for postretirement benefit and pension obligations could be materially higher than we have predicted if our underlying assumptions prove to be incorrect. Concerns about the environmental impacts of coal combustion, including perceived impacts on global climate change, are resulting in increased regulation of coal combustion in many jurisdictions, and interest in further regulation, which could significantly affect demand for our products. As we continue to pursue Btu Conversion and clean coal technology activities, we face challenges and risks that differ from others in the mining business. Our certificate of incorporation and by-laws include provisions that may discourage a takeover attempt. Diversity in interpretation and application of accounting literature in the mining industry may impact our reported financial results.

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1064728--2/24/2010--PEABODY_ENERGY_CORP