PEABODY ENERGY CORP — Director's Dealing 2011

Jan 5, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: PEABODY ENERGY CORP (BTU)
CIK: 0001064728
Period of Report: 2011-01-03

Reporting Person: NAVARRE RICHARD A (Pres & Chief Comm. Officer)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2011-01-05	Common Stock	M	25750	$26.84	Acquired	47502	Direct
2011-01-05	Common Stock	S	1900	$61.53	Disposed	45602	Direct
2011-01-05	Common Stock	S	23850	$62.01	Disposed	21752	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2011-01-03	Employee Stock Option (right to buy)	$64.52	A	36090	Acquired	2021-01-03	Common Stock (36090)	Direct
2011-01-05	Employee Stock Option (right to buy)	$26.84	M	25750	Disposed	2019-01-05	Common Stock (25750)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	120900	Indirect

Footnotes

F1: This exercise/sale was effected pursuant to a pre-existing Rule 10b5-1 trading plan adopted by the reporting person.

F2: This represents the weighted average sale price for the shares. The shares were sold in multiple transactions at prices ranging from $61.52 to $61.54 per share, inclusive. The reporting person will provide upon request by the SEC staff, the issuer or a security holder of the issuer, full information regarding the number of shares sold at each separate price.

F3: This represents the weighted average sale price for the shares. The shares were sold in multiple transactions at prices ranging from $61.59 to $62.56 per share, inclusive. The reporting person will provide upon request by the SEC staff, the issuer or a security holder of the issuer, full information regarding the number of shares sold at each separate price.

F4: The options vest in three equal annual installments beginning January 3, 2012.

F5: Does not include employee stock options with different expiration dates and exercise prices.

F6: Not applicable.