EXHIBIT 99.1




[PEABODY LOGO]                                                    PEABODY ENERGY
                                                                  NEWS RELEASE


                                                                  CONTACT:
                                                                  Vic Svec
                                                                  (314) 342-7768



FOR IMMEDIATE RELEASE
July 19, 2002

PEABODY ENERGY (NYSE: BTU) OFFERS
GUIDANCE FOR SECOND QUARTER AND FULL YEAR

ST. LOUIS, JULY 19 -- Peabody Energy (NYSE: BTU) today announced that it expects
to report diluted earnings per share totaling $0.45 for the quarter ended June
30, 2002, on EBITDA* of $113.8 million. Peabody will report quarterly results
and hold a related conference call on July 24, 2002.

         Based on soft market conditions and force majeure events affecting
several customers, Peabody has modified its planned 2002 production and earnings
guidance. At present, Peabody has 99 percent of its 180 million tons of
anticipated 2002 production committed. Peabody is targeting full-year 2002
EBITDA of $430 million to $450 million, an improvement of 13 to 18 percent over
the prior year. The company now targets full-year 2002 EPS of $1.15 to $1.50.

         Peabody Energy (NYSE: BTU) is the world's largest private-sector coal
company, with 2001 U.S. sales of 194 million tons of coal and $2.7 billion in
revenues.  Its coal fuels more than 9 percent of all U.S. electricity generation
and more than 2 percent of worldwide electricity generation.

* EBITDA (also called adjusted EBITDA) is defined as income from continuing
operations before deducting net interest expense, income taxes, minority
interests and depreciation, depletion and amortization. EBITDA is not a
substitute for operating income, net income and cash flow from operating
activities as determined in accordance with generally accepted accounting
principles as a measure of profitability or liquidity. It is presented as
additional information because management believes it is a useful indicator of
its ability to meet debt service and capital expenditure requirements. Because
all companies do not calculate EBITDA identically, the presentation herein may
not be comparable to similarly titled measures of other companies.

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 cause actual results to differ
materially from expectations as of the date of this release. These risks
include, but are not limited to: growth in coal and power markets; timing of
reductions in customer coal inventories; future economic conditions; severity of
weather; railroad performance; the ability to renew coal sales contracts upon
expiration or renegotiation; risks of coal mining including geological
conditions; the ability to successfully implement operating strategies;
regulatory and court decisions; future legislation; credit and market risk
associated with the company's customers; and other risks detailed from time to
time in the company's reports filed with the Securities and Exchange Commission.
These factors are difficult to accurately predict and may be beyond the control
of the company.