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Wilkie Creek: <br />Peabody Energy announced the sale of Wilkie Creek, one of its Australian mines, to Sekitan <br />Resources (a wholly owned Australian subsidiary of Energen) in July 2015. The sale was <br />announced as including $20 million in cash plus $55 million in assumed liabilities. 28 Peabody <br />had originally estimated the mine value at $500 million.29 The closing of the sale to Sekitan <br />Resources was expected in the third quarter of 201530 but has been delayed by financing <br />issues.31 At the time of the announced sale, the mine was closed and had laid off 200 <br />employees.32 According to published reports the new owner plans to reopen the mine and <br />commence coal production post -closing 33 <br />Sale of Mines in New Mexico and Colorado 34 <br />In November 2015 Peabody announced that it would sell three mines - Twentymile in <br />Colorado and EI Segundo and Lee Ranch in New Mexico to Bowie Resource Partners for $463 <br />million ($358 million cash and $105 million in liability assumptions). 35 Peabody stated it is <br />refocusing its efforts on the Powder River Basin, Australia and Illinois Basin going forward. <br />Peabody lists the three mines in New Mexico and Colorado as having 300 million tons in <br />proven and probable reserves and capacity to produce 11 million tons of coal per year. The <br />proceeds from the sale are to be used for "general corporate purposes and other <br />deleveraging activities". The sales also have the effect of removing $300 million in reclamation <br />liabilities from Peabody's balance sheet. The sale to Bowie Resource Partners is expected to <br />be underwritten by affiliates of Blackstone and to close by the end of the first quarter of 2016.36 <br />Prairie State Energy Campus <br />The Prairie State transaction will produce $57 million and may allow Peabody to escape <br />liability for a host of financial and operational challenges facing this new 1600 MW coal plant <br />in Marissa, Illinois. Peabody was the lead developer on the project a decade ago and sold its <br />interests to state power agencies in Ohio, Indiana, Illinois, Kentucky and Missouri. Over 200 <br />Midwest communities have bought into the plant and collectively the power agencies and <br />municipalities have assumed $4.75 billion in bond indebtedness. The plant opened in 2012 and <br />has not produced electricity at prices that were described by Peabody and other members of <br />its development team while they were promoting the project. After three years of operation, <br />28 http://www.peabodyenergy.com/content/120/press-releases <br />Rohan Showmanship, Peabody Energy selling Australian Thermal coal mine in $75M deal, SNL, July 8, 2015. <br />3° http:/twww.peabodyenergy com/content/120/press-releases <br />31 http://www.peabodyenergy.comrinvestor-news-release-de tails. aspx?nr-908 <br />32 http://www.austraIianmining.com.au/News/Peabody-axes-200-jobs-shuts-Wilkie-Creek <br />33 http://mininglink.com.au/story/new-owner-has-bright-plans-for-Mlkie-creek-mine <br />J4 http://www.peabDdyenergy.com/rontenUl20/press-releases <br />35 http://www.peabodyenergy.com/contenU162/sec-filings, Form 8K, Press Release, November 20, 2015. (Form 8K-2015 <br />Bowie) <br />36 Form 8K -2015 Bowie <br />Peabody's Strategies for Survival Ignore Market Realities and Risk Backfiring 8 <br />