Peabody Energy Corp (BTU) shares surged 5.25% in pre-market trading on Tuesday, following the release of its better-than-expected first-quarter earnings report and dividend announcement. The coal mining company demonstrated resilience in a challenging market environment, surpassing analysts' expectations.

Peabody reported a Q1 earnings per share (EPS) of $0.27, significantly beating the FactSet estimate of $0.10 and the IBES estimate of $0.05. The company's adjusted EBITDA for the quarter reached $144 million, well above the IBES estimate of $93 million. Despite a slight decrease in revenue to $937 million compared to the same period last year, Peabody's financial performance remained robust.

Adding to investor optimism, Peabody declared a quarterly dividend of $0.075 per share, signaling confidence in its financial stability. However, the company also noted a potential issue regarding its pending deal with Anglo American's Moranbah North mine, stating that if the matter is not resolved satisfactorily, Peabody may elect to terminate the agreements. This development adds an element of uncertainty to the company's future prospects, which investors will likely monitor closely in the coming weeks.