ST. LOUIS, Aug. 4, 2011 /PRNewswire/ -- Peabody Energy (NYSE: BTU) and Ameren Corporation (NYSE: AEE) have entered into an agreement to provide 91 million tons of low sulfur coal to serve multiple electricity generating plants in Missouri through 2017.
Peabody will source multiple products from its Powder River Basin operations in Wyoming to serve contract terms that would continue a minimum of six years, with opportunities for extension.
"The contract represents a major commitment between the largest Powder River Basin producer and the largest Powder River Basin customer," said Peabody Chairman and Chief Executive Officer Gregory H. Boyce. "This contract is a win-win for Ameren and Peabody, reinforcing the strong relationship between our companies and the growing market for low sulfur Powder River Basin coal."
"The bottom line is that this strategy is great for our customers, the environment and the state's economy," said Warner L. Baxter, President and Chief Executive Officer of Ameren Missouri. "With this approach, we will produce cleaner air, reduce the impact of stringent environmental standards on our customers, strengthen our state's energy and economic future, and enter into a long-term contract with the leading coal company – Peabody Energy."
Ameren Missouri has been providing electric and gas service for more than a century, and the company's electric rates are among the lowest in the nation. Ameren Missouri serves 1.2 million electric and 126,000 natural gas customers in central and eastern Missouri. Its mission is to meet customers' energy needs in a safe, reliable, efficient and environmentally responsible manner. Ameren Missouri's service area covers 63 counties and more than 500 towns, including the greater St. Louis area.
Peabody Energy (NYSE: BTU) is the world's largest private-sector coal company and a global leader in clean coal solutions. With 2010 sales of 246 million tons and nearly $7 billion in revenues, Peabody fuels 10 percent of U.S. power and 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 forward-looking statements are based on numerous assumptions that the company believes are reasonable, but they are open to a wide range of uncertainties and business risks that may cause actual results to differ materially from expectations. These factors are difficult to accurately predict and may be beyond the company's control. The company does not undertake to update its forward-looking statements. Factors that could affect results include those described in this press release as well as risks detailed in the company's reports filed with the Securities and Exchange Commission.
CONTACT: Meg Gallagher (314) 342-7963
SOURCE Peabody Energy