Spreadsheet: 7bbc2626-fed8-4e9f-9927-62df89820d48
Sheet: Calendar 2006

PEABODY ENERGY CORPORATION
Quarterly Consolidated Income Statements
(Dollars in millions, except per share data)
 |  |  |  |  |  |  |  |  |  |  | (Audited)
 |  |  | Quarters Ended (Unaudited) |  |  |  |  |  |  |  | Year Ended |  | Peabody
 |  |  | March 31, |  | June 30, |  | Sept. 30, |  | Dec. 31, |  | Dec. 31, |  | Continuing
 |  |  | 2006 |  | 2006 |  | 2006 |  | 2006 |  | 2006 |  | Operations4
Sales |  |  | 1288.9 |  | 1293.7 |  | 1223.3 |  | 1339.1 |  |  |  | 3939.7
Other revenues |  |  | 22.9 |  | 22.7 |  | 41.7 |  | 24 |  |  |  | 105.9
REVENUES
COSTS AND EXPENSES
Operating costs and expenses |  |  | 1022.4 |  | 1053.5 |  | 1003 |  | 1077.1 |  |  |  | 3084.2
Depreciation, depletion and amortization |  |  | 81 |  | 91.5 |  | 90.6 |  | 114.1 |  |  |  | 282.7
Asset retirement obligation expense |  |  | 7.2 |  | 11.6 |  | 7.1 |  | 14.2 |  |  |  | 14.2
Selling and administrative expenses |  |  | 46.5 |  | 40.8 |  | 31.5 |  | 57.1 |  |  |  | 128
Other operating income:
Net gain on disposal or exchange of assets |  |  | -9.2 |  | -50 |  | -35 |  | -37.9 |  |  |  | -53.5
Income from equity affiliates |  |  | -7.3 |  | -6.7 |  | -5.2 |  | -4.7 |  |  |  | -22.8
OPERATING PROFIT
Interest income |  |  | -2.6 |  | -1.5 |  | -1.9 |  | -6.7 |  |  |  | -11.3
Early debt extinguishment costs (gains) |  |  | 0 |  | -0.4 |  | 0 |  | 1.8 |  |  |  | 1.4
Interest expense |  |  | 27.4 |  | 25.7 |  | 26.4 |  | 63.9 |  |  |  | 137.7
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES
Income tax provision (benefit) |  |  | 11.5 |  | -3.3 |  | 2.74 |  | -92.4 |  |  |  | -85.6
INCOME FROM CONTINUING OPERATIONS, NET OF INCOME TAXES
 | Gain from discontinued operations, net of incomes taxes |  | 0 |  | 0 |  | 0 |  | 0 |  |  |  | 30.7
NET INCOME
 | Less: net income attributable to noncontrolling interests |  | 4.7 |  | 1.8 |  | 3.8 |  | 1.5 |  |  |  | 0.6
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
Diluted number of shares (weighted average in millions) (1) |  |  |  |  |  |  |  |  |  |  |  |  | 268.8
Diluted EPS from Continuing Operations (2) |  |  |  |  |  |  |  |  |  |  |  |  | 2.11
EBITDA (3)
(1) | We compute EPS using a two-class method using an earnings allocation method that determines EPS separately for common stock and participating securities. As a result, it may not be possible to recalculate EPS as presented in our condensed consolidated statements of operations.
(2) | Reflects the company's February 22, 2006 two-for-one stock split.
(3) | EBITDA (also called Adjusted EBITDA) is defined as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expense, and depreciation, depletion and amortization.  EBITDA, which is not calculated identically by all companies, is not a substitute for operating income, net income or cash flow as determined in accordance with United States generally accepted accounting principles.  Management uses EBITDA as a key measure of operating performance and also believes it is a useful indicator of the company’s ability to meet debt service and capital expenditure requirements.
(4) | Adjusted for discontinued operations of Patriot Coal Corporation and the assets held for sale.
This information is intended to be reviewed in conjunction with the company's filings with the Securities and Exchange Commission.