Peabody Energy Completes Spin-Off of Patriot Coal Corporation

Nov 01, 2007, 01:00 ET from Peabody Energy

    ST. LOUIS, Nov. 1 /PRNewswire-FirstCall/ -- Peabody Energy (NYSE:   BTU)
 today announced that it has completed the spin-off of coal assets and
 operations in West Virginia and Kentucky to BTU shareholders. The spin-off
 was accomplished on Oct. 31, 2007, through a special dividend of all
 outstanding shares of Patriot Coal Corporation, at a ratio of one share of
 Patriot Coal stock for every 10 shares of Peabody held. Patriot trades on
 the New York Stock Exchange under the ticker symbol PCX and has 26.6
 million shares outstanding.
     "Completing this spin-off was a key element in transforming our
 business portfolio," said Peabody Chairman and Chief Executive Officer
 Gregory H. Boyce. "Peabody and Patriot will both benefit by a distinct
 business focus and growth opportunities to build shareholder value. Peabody
 remains focused on high-margin, high-growth markets by expanding globally
 and building on our leading U.S. position in the Powder River Basin,
 Colorado and the Midwest."
     Peabody Energy is the world's largest private-sector coal company. Its
 coal products fuel approximately 10 percent of all U.S. electricity
 generation and more than 2 percent of worldwide electricity.
     Certain statements in this press release are forward-looking as defined
 in the Private Securities Litigation Reform Act of 1995. These statements
 involve certain risks and uncertainties that may be beyond our control and
 may cause our actual future results to differ materially from expectations.
 We do not undertake to update our forward-looking statements. Factors that
 could affect our results include, but are not limited to: the outcome of
 our evaluation of strategic alternatives for our West Virginia and Kentucky
 subsidiaries; the outcome of commercial negotiations involving sales
 contracts or other transactions; customer performance and credit risk;
 supplier performance, and the availability and cost of key equipment and
 commodities; availability and costs of transportation; geologic, equipment
 and operational risks associated with mining; our ability to replace coal
 reserves; labor availability and relations; the effects of mergers,
 acquisitions and divestitures; legislative and regulatory developments; the
 outcome of pending or future litigation; coal and power market conditions;
 weather patterns affecting energy demand; availability and costs of
 competing energy resources; worldwide economic and political conditions;
 global currency exchange and interest rate fluctuation; wars and acts of
 terrorism or sabotage; political risks, including expropriation; and other
 risks detailed in the company's reports filed with the Securities and
 Exchange Commission.

SOURCE Peabody Energy