10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

☐   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________to________________

Commission File No.: 0-26823

ALLIANCE RESOURCE PARTNERS, L.P.

(Exact name of registrant as specified in its charter)

Delaware	73-1564280
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

1717 South Boulder Avenue, Suite 400, Tulsa, Oklahoma 74119

(Address of principal executive offices and zip code)

(918) 295-7600

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] Yes   [   ] No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  [X ] Yes   [   ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒	Accelerated Filer ☐	Non-Accelerated Filer ☐	Smaller Reporting Company ☐
Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  ☐  Yes   ☒  No

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common units representing limited partner interests	ARLP	NASDAQ Global Select Market

As of August 8, 2023, 127,125,437 common units are outstanding.

TABLE OF CONTENTS

		Page
ITEM 1.	Financial Statements (Unaudited)
	ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES
	Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	1
	Condensed Consolidated Statements of Income for the three and six months ended June 30, 2023 and 2022	2
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2023 and 2022	3
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022	4
	Notes to Condensed Consolidated Financial Statements	5
	1.     Organization and Presentation	5
	2.     Acquisitions	6
	3.     Contingencies	6
	4.     Inventories	7
	5.     Fair Value Measurements	7
	6.     Long-Term Debt	8
	7.     Income Taxes	10
	8.    Variable Interest Entities	10
	9.    Investments	12
	10.   Partners' Capital	13
	11.   Revenue from Contracts with Customers	16
	12.   Earnings per Limited Partner Unit	17
	13.   Workers' Compensation and Pneumoconiosis	18
	14.   Common Unit-Based Compensation Plans	19
	15.   Components of Pension Plan Net Periodic Benefit Cost	20
	16.   Segment Information	20
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	35
ITEM 4.	Controls and Procedures	36
	Forward-Looking Statements	37
PART II
OTHER INFORMATION
ITEM 1.	Legal Proceedings	39
ITEM 1A.	Risk Factors	39
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
ITEM 3.	Defaults Upon Senior Securities	40
ITEM 4.	Mine Safety Disclosures	40
ITEM 5.	Other Information	40
ITEM 6.	Exhibits	40

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PART I

FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except unit data)

(Unaudited)

	June 30,		December 31,
	2023		2022*
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	284,899	$	296,023
Trade receivables		213,754		241,412
Other receivables		11,672		8,601
Inventories, net		128,940		77,326
Advance royalties		5,824		7,556
Prepaid expenses and other assets		18,842		26,675
Total current assets		663,931		657,593
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost		4,040,872		3,931,422
Less accumulated depreciation, depletion and amortization		(2,112,693)		(2,050,754)
Total property, plant and equipment, net		1,928,179		1,880,668
OTHER ASSETS:
Advance royalties		74,476		67,713
Equity method investments		46,789		49,371
Equity securities		42,000		42,000
Operating lease right-of-use assets		17,621		14,950
Other long-term assets		14,947		15,726
Total other assets		195,833		189,760
TOTAL ASSETS	$	2,787,943	$	2,728,021
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable	$	109,093	$	95,122
Accrued taxes other than income taxes		22,852		22,967
Accrued payroll and related expenses		35,220		39,623
Accrued interest		4,312		5,000
Workers' compensation and pneumoconiosis benefits		14,135		14,099
Other current liabilities		24,377		53,790
Current maturities, long-term debt, net		37,771		24,970
Total current liabilities		247,760		255,571
LONG-TERM LIABILITIES:
Long-term debt, excluding current maturities, net		379,427		397,203
Pneumoconiosis benefits		101,578		100,089
Accrued pension benefit		12,028		12,553
Workers' compensation		41,170		39,551
Asset retirement obligations		143,550		142,254
Long-term operating lease obligations		14,645		12,132
Deferred income tax liabilities		35,416		35,814
Other liabilities		25,612		24,828
Total long-term liabilities		753,426		764,424
Total liabilities		1,001,186		1,019,995
COMMITMENTS AND CONTINGENCIES - (NOTE 3)
PARTNERS' CAPITAL:
ARLP Partners' Capital:
Limited Partners - Common Unitholders 127,125,437 and 127,195,219 units outstanding, respectively		1,801,682		1,656,025
General Partner's interest		—		66,548
Accumulated other comprehensive loss		(39,926)		(41,054)
Total ARLP Partners' Capital		1,761,756		1,681,519
Noncontrolling interest		25,001		26,507
Total Partners' Capital		1,786,757		1,708,026
TOTAL LIABILITIES AND PARTNERS' CAPITAL	$	2,787,943	$	2,728,021

*Recast as discussed in Note 1 – Organization and Presentation.

See notes to condensed consolidated financial statements.

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ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except unit and per unit data)

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022*		2023		2022*
SALES AND OPERATING REVENUES:
Coal sales	$	560,331	$	531,807	$	1,139,115	$	920,167
Oil & gas royalties		33,087		39,287		67,584		72,683
Transportation revenues		30,527		35,385		60,765		64,757
Other revenues		17,891		13,399		37,294		25,693
Total revenues		641,836		619,878		1,304,758		1,083,300
EXPENSES:
Operating expenses (excluding depreciation, depletion and amortization)		334,402		316,850		673,125		578,873
Transportation expenses		30,527		35,385		60,765		64,757
Outside coal purchases		4,209		151		4,209		151
General and administrative		20,130		22,480		41,215		41,102
Depreciation, depletion and amortization		68,639		67,690		134,189		131,830
Total operating expenses		457,907		442,556		913,503		816,713
INCOME FROM OPERATIONS		183,929		177,322		391,255		266,587
Interest expense (net of interest capitalized for the three and six months ended June 30, 2023 and 2022 of $1,216, $171, $2,623 and $241, respectively)		(9,433)		(9,397)		(22,109)		(19,059)
Interest income		2,625		93		5,415		128
Equity method investment income (loss)		(1,994)		1,585		(1,942)		2,468
Other income (expense)		177		579		(396)		1,146
INCOME BEFORE INCOME TAXES		175,304		170,182		372,223		251,270
INCOME TAX EXPENSE		3,999		6,331		8,240		49,046
NET INCOME		171,305		163,851		363,983		202,224
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST		(1,515)		(323)		(3,008)		(613)
NET INCOME ATTRIBUTABLE TO ARLP	$	169,790	$	163,528	$	360,975	$	201,611
NET INCOME ATTRIBUTABLE TO ARLP
GENERAL PARTNER	$	—	$	2,050	$	1,384	$	3,481
LIMITED PARTNERS	$	169,790	$	161,478	$	359,591	$	198,130
EARNINGS PER LIMITED PARTNER UNIT - BASIC AND DILUTED	$	1.30	$	1.23	$	2.75	$	1.51
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING – BASIC AND DILUTED		127,183,439		127,195,219		127,236,097		127,195,219

* Recast as discussed in Note 1 – Organization and Presentation.

See notes to condensed consolidated financial statements.

2

ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022*		2023		2022*
NET INCOME	$	171,305	$	163,851	$	363,983	$	202,224
OTHER COMPREHENSIVE INCOME:
Defined benefit pension plan
Amortization of prior service cost (1)		46		46		93		93
Amortization of net actuarial loss (1)		171		489		344		972
Total defined benefit pension plan adjustments		217		535		437		1,065
Pneumoconiosis benefits
Amortization of net actuarial loss (1)		346		259		691		519
Total pneumoconiosis benefits adjustments		346		259		691		519
OTHER COMPREHENSIVE INCOME		563		794		1,128		1,584
COMPREHENSIVE INCOME		171,868		164,645		365,111		203,808
Less: Comprehensive income attributable to noncontrolling interest		(1,515)		(323)		(3,008)		(613)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ARLP	$	170,353	$	164,322	$	362,103	$	203,195

(1) Amortization of prior service cost and net actuarial loss is included in the computation of net periodic benefit cost (credit) (see Notes 13 and 15 for additional details).

* Recast as discussed in Note 1 – Organization and Presentation.

See notes to condensed consolidated financial statements.

3

ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended
	June 30,
	2023		2022*
CASH FLOWS FROM OPERATING ACTIVITIES	$	504,023	$	239,391
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment:
Capital expenditures		(185,017)		(121,982)
Change in accounts payable and accrued liabilities		(25,630)		8,951
Proceeds from sale of property, plant and equipment		2,468		3,373
Contributions to equity method investments		(1,334)		(20,110)
Purchase of equity securities		—		(32,639)
JC Resources acquisition		(64,999)		—
Oil & gas reserve acquisition		(3,935)		—
Other		833		(935)
Net cash used in investing activities		(277,614)		(163,342)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under securitization facility		—		27,500
Payments under securitization facility		—		(27,500)
Payments on equipment financings		(7,565)		(8,696)
Borrowing under long-term debt		75,000		—
Payments on long-term debt		(65,474)		—
Payments on finance lease obligations		(306)		(410)
Payment of debt issuance costs		(11,744)		—
Payments for purchases of units under unit repurchase program		(19,432)		—
Payments for tax withholdings related to settlements under deferred compensation plans		(10,334)		—
Excess purchase price over the contributed basis from JC Resources acquisition		(7,251)		—
Cash retained by JC Resources in acquisition		(2,933)		(4,074)
Distributions paid to Partners		(182,868)		(78,560)
Other		(4,626)		(623)
Net cash used in financing activities		(237,533)		(92,363)
NET CHANGE IN CASH AND CASH EQUIVALENTS		(11,124)		(16,314)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		296,023		122,403
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	284,899	$	106,089
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	20,242	$	17,506
Cash paid for income taxes	$	5,760	$	10,964
SUPPLEMENTAL NON-CASH ACTIVITY:
Accounts payable for purchase of property, plant and equipment	$	18,651	$	17,276
Right-of-use assets acquired by operating lease	$	2,280	$	99
Market value of common units issued under deferred compensation plans before tax withholding requirements	$	28,906	$	—

* Recast as discussed in Note 1 – Organization and Presentation.

See notes to condensed consolidated financial statements.

4

ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.ORGANIZATION AND PRESENTATION

Significant Relationships Referenced in Notes to Condensed Consolidated Financial Statements

● References to "we," "us," "our" or "ARLP Partnership" mean the business and operations of Alliance Resource Partners, L.P., the parent company, as well as its consolidated subsidiaries.

● References to "ARLP" mean Alliance Resource Partners, L.P., individually as the parent company, and not on a consolidated basis.

● References to "MGP" mean Alliance Resource Management GP, LLC, ARLP's general partner.  

● References to "Mr. Craft" mean Joseph W. Craft III, the Chairman, President and Chief Executive Officer of MGP.

● References to "Intermediate Partnership" mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P.

● References to "Alliance Coal" mean Alliance Coal, LLC, an indirect wholly owned subsidiary of ARLP.

● References to "Alliance Minerals" mean Alliance Minerals, LLC, an indirect wholly owned subsidiary of ARLP.

● References to "Alliance Resource Properties" mean Alliance Resource Properties, LLC, an indirect wholly owned subsidiary of ARLP.

Organization

ARLP is a Delaware limited partnership listed on the NASDAQ Global Select Market under the ticker symbol "ARLP."  ARLP was formed in May 1999 and completed its initial public offering on August 19, 1999 when it acquired substantially all of the coal production and marketing assets of Alliance Resource Holdings, Inc., a Delaware corporation, and its subsidiaries.  We are managed by our general partner, MGP, a Delaware limited liability company which holds a non-economic general partner interest in ARLP.

JC Resources Acquisition

On February 22, 2023, we acquired approximately 2,682 oil & gas net royalty acres in the Delaware Basin from JC Resources LP ("JC Resources"), an entity owned by Mr. Craft, for $72.3 million, which was funded with cash on hand ("JC Resources Acquisition"). Because JC Resources is owned by Mr. Craft, the JC Resources Acquisition is accounted for as a reorganization of entities under common control, whereby the assets and liabilities acquired from JC Resources are combined with the ARLP Partnership at their historical amounts for all periods presented.  The recasting of 2022 for the JC Resources Acquisition increased revenues by $3.4 million and $5.9 million for the three and six months ended June 30, 2022, respectively, and increased income from operations, net income and comprehensive income by $2.1 million and $3.5 million for the three and six months ended June 30, 2022, respectively. We did not recast historical earnings per limited partner unit as pre-acquisition earnings from the JC Resources Acquisition were allocated to our general partner. For more information on this acquisition please see Note 2 – Acquisition.

Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of June 30, 2023 and December 31, 2022 and the results of our operations and comprehensive income for the three months ended June 30, 2023 and 2022, and cash flows for the six months ended June 30, 2023 and 2022.  All intercompany transactions and accounts have been eliminated.

These condensed consolidated financial statements and notes are prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting and do not include all the information normally included with financial statements prepared in accordance with generally accepted accounting principles ("GAAP") of the United

5

States.  These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.

These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of the results for the periods presented.  Results for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2023.

Use of Estimates

The preparation of the ARLP Partnership's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in our condensed consolidated financial statements. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and on deposit, including highly liquid investments with maturities of three months or less. At times the ARLP Partnership maintains deposits in federally insured financial institutions in excess of stated federally insured limits.  Management monitors the credit ratings and concentration of risk with these financial institutions on a continuing basis to safeguard cash deposits. Based on this monitoring and other diligence, including discussions with representatives of the financial institutions, we have no reason to believe that any of the financial institutions in which we have deposits in excess of stated federally insured limits are facing financial difficulties, defaults or limited liquidity situations that would cause us to be unable to access to our deposits.

2.ACQUISITIONS

JC Resources

As discussed in Note 1 – Organization and Presentation, on February 22, 2023, we completed the JC Resources Acquisition, which gives us increased exposure to a prolific area of the Delaware Basin that is within close proximity to reserves that we currently own.  This acquisition was approved by the conflicts committee of MGP's board of directors, which is comprised entirely of independent directors.  Because JC Resources is under common control with us, we recorded the acquisition at JC Resources' carrying value for each period presented. The carrying value of the mineral interests as well as related receivables and payables at February 22, 2023 was $65.0 million inclusive of $25.4 million and $37.8 million of mineral interests in proved and unproved properties, respectively. The JC Resources Acquisition increased revenues included in our condensed consolidated statements of income by $2.4 million and $5.4 million for the three and six months ended June 30, 2023, respectively.

Acquisition Agreement

On January 27, 2023, we entered into a one-year collaborative agreement with a third party, effective January 1, 2023, committing up to $35.0 million for the acquisition of oil & gas mineral interests in the Midland and Delaware Basins. Under the agreement, the third party assists us in the identification, evaluation, and acquisition of target oil & gas mineral interests. In exchange for these services, the third party receives a participation share, partially funded by the third party, and is paid a periodic management fee.  As of June 30, 2023, we have purchased $1.9 million and $2.1 million of oil & gas mineral interests in proved and unproved properties, respectively, pursuant to this agreement.  Management fees paid under this agreement have been immaterial.

3.CONTINGENCIES

Certain of our subsidiaries are party to litigation in which the plaintiffs allege violations of the Fair Labor Standards Act and state law due to alleged failure to compensate for time "donning" and "doffing" equipment and to account for certain bonuses in the calculation of overtime rates and pay. The plaintiffs seek class and collective action certification, which we oppose, and the courts have not yet made definitive final rulings on those issues. We had a mediation with the plaintiffs on June 12, 2023 but no settlement was reached. We are defending this litigation vigorously and continue to believe the plaintiffs' claims are without merit. We believe our ultimate exposure, if any, will not be material to our results of operations or financial position; however, if our current belief that the claims are without merit

6

is not upheld, it is reasonably possible that the ultimate resolution of these matters could result in a potential loss that may be material to our results of operations.

We also have various other lawsuits, claims and regulatory proceedings incidental to our business that are pending against the ARLP Partnership. We record an accrual for a potential loss related to these matters when, in management's opinion, such loss is probable and reasonably estimable. Based on known facts and circumstances, we believe the ultimate outcome of these outstanding lawsuits, claims and regulatory proceedings will not have a material adverse effect on our financial condition, results of operations or liquidity. However, if the results of these matters are different from management's current expectations and in amounts greater than our accruals, such matters could have a material adverse effect on our business and operations.

4.INVENTORIES

Inventories consist of the following:

	June 30,		December 31,
	2023		2022
	(in thousands)
Coal	$	66,383	$	23,553
Supplies (net of reserve for obsolescence of $7,456 and $6,601, respectively)		62,557		53,773
Total inventories, net	$	128,940	$	77,326

5.FAIR VALUE MEASUREMENTS

The following table summarizes our fair value measurements within the hierarchy not included elsewhere in these notes:

	June 30, 2023						December 31, 2022
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
	(in thousands)
Long-term debt	$	—	$	429,757	$	—	$	—	$	424,420	$	—
Total	$	—	$	429,757	$	—	$	—	$	424,420	$	—

The carrying amounts for cash equivalents, accounts receivable, accounts payable, accrued and other liabilities approximate fair value due to the short maturity of those instruments.

The estimated fair value of our long-term debt, including current maturities, is based on interest rates that we believe are currently available to us in active markets for issuance of debt with similar terms and remaining maturities (See Note 6 – Long-Term Debt).  The fair value of debt, which is based upon these interest rates, is classified as a Level 2 measurement under the fair value hierarchy.

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6.LONG-TERM DEBT

Long-term debt consists of the following:

					Unamortized Discount and
	Principal				Debt Issuance Costs
	June 30,		December 31,		June 30,		December 31,
	2023		2022		2023		2022
	(in thousands)
Revolving credit facility	$	—	$	—	$	(8,806)	$	(2,702)
Term loan		70,312		—		(1,538)		—
Senior notes		339,214		400,000		(1,427)		(2,134)
Securitization facility		—		—		—		—
November 2019 equipment financing		15,425		21,072		—		—
June 2020 equipment financing		4,018		5,937		—		—
		428,969		427,009		(11,771)		(4,836)
Less current maturities		(38,194)		(24,970)		423		—
Total long-term debt	$	390,775	$	402,039	$	(11,348)	$	(4,836)

Credit Facility.  On January 13, 2023, Alliance Coal, as borrower, entered into a Credit Agreement (the "Credit Agreement") with various financial institutions. The Credit Agreement provides for a $425 million revolving credit facility, which includes a sublimit of $15.0 million for swingline borrowings and permits the issuance of letters of credit up to the full amount of $425 million (the "Revolving Credit Facility"), and for a term loan in an aggregate principal amount of $75 million (the "Term Loan"). The Credit Agreement matures on March 9, 2027, at which time the aggregate outstanding principal amount of all Revolving Credit Facility advances and all Term Loan advances are required to be repaid in full. The Credit Agreement will instead mature on January 30, 2025, if on that date our Senior Notes, as discussed below, are still outstanding and Alliance Coal does not have liquidity of at least $200 million. Interest is payable quarterly, with principal of the Term Loan due in quarterly installments equal to 6.25% of the original principal amount of the Term Loan beginning with the quarter ending June 30, 2023 and the balance payable at maturity. The Revolving Credit Facility replaces the $459.5 million revolving credit facility, which included a sublimit of $125.0 million for the issuance of letters of credit and a sublimit of $15.0 million for swingline borrowings, extended to the Intermediate Partnership under its Fifth Amended and Restated Credit Agreement, dated as of March 9, 2020 that would have expired on March 9, 2024. We incurred debt issuance costs during the six months ended June 30, 2023 of $11.7 million in connection with the Credit Agreement. These debt issuance costs are deferred and amortized as a component of interest expense over the term of the Revolving Credit Facility.

The Revolving Credit Facility is underwritten by a syndicate of eighteen financial institutions and the obligations of the lenders are individual obligations, which means the failure of one or more lenders to be able to fund its obligation does not relieve the remaining lenders from funding their obligations. Based on our diligence, including discussions with representatives of certain of these financial institutions, as of June 30, 2023 we have no reason to believe that the banks within our syndicate are facing financial difficulties, defaults or limited liquidity situations that would cause them to be unable to fund their obligations under the Credit Agreement. However, should any of the banks in our syndicate experience conditions in the future that limit their ability to fund their obligations, the amount available under the Revolving Credit Facility could be reduced.    

The Credit Agreement is guaranteed by ARLP and certain of its subsidiaries, including the Intermediate Partnership and most of the direct and indirect subsidiaries of Alliance Coal (the "Subsidiary Guarantors"). The Credit Agreement also is secured by substantially all of the assets of the Subsidiary Guarantors and Alliance Coal. Borrowings under the Credit Agreement bear interest, at our option, at either (i) an adjusted term rate plus the applicable margin or (ii) the base rate plus the applicable margin. The base rate is the highest of (i) the Overnight Bank Funding Rate plus 0.50%, (ii) the Administrative Agent's prime rate, and (iii) the Daily Simple Secured Overnight Financing Rate plus 100 basis points. The applicable margin for borrowings under the Credit Agreement are determined by reference to the Consolidated Debt to Consolidated Cash Flow Ratio and was 0.49% as of June 30, 2023. At June 30, 2023, we had $41.0 million of letters of credit outstanding with $384.0 million available for borrowing under the Revolving Credit Facility. We incurred an annual commitment fee of 0.50% on the undrawn portion of the Revolving Credit Facility. We utilize the Credit

8

Agreement, as appropriate, for working capital requirements, capital expenditures and investments, scheduled debt payments and distribution payments.  

The Credit Agreement contains various restrictions affecting Alliance Coal and its subsidiaries, including, among other things, restrictions on incurrence of additional indebtedness and liens, sale of assets, investments, mergers and consolidations and transactions with affiliates. In each case, these restrictions are subject to various exceptions. In addition, restrictions apply to cash distributions by Alliance Coal to the Intermediate Partnership if such distribution would result in exceeding a minimum fixed charge coverage ratio (as determined in the Credit Agreement) or in Alliance Coal having liquidity of less than $200 million. The Credit Agreement requires us to maintain (a) a debt of Alliance Coal to cash flow ratio of not more than 1.5 to 1.0, (b) a consolidated debt of Alliance Coal and the Intermediate Partnership to cash flow ratio of not more than 2.5 to 1.0 and (c) an interest coverage ratio of not less than 3.0 to 1.0, in each case, during the four most recently ended fiscal quarters. The debt of Alliance Coal to cash flow ratio, consolidated debt of Alliance Coal and the Intermediate Partnership to cash flow ratio, and interest coverage ratio were 0.10 to 1.0, 0.49 to 1.0 and 145.52 to 1.0, respectively, for the trailing twelve months ended June 30, 2023. We were in compliance with the covenants of the Credit Agreement as of June 30, 2023 and anticipate remaining in compliance with the covenants.  

Senior Notes.  On April 24, 2017, the Intermediate Partnership and Alliance Resource Finance Corporation (as co-issuer), a wholly owned subsidiary of the Intermediate Partnership ("Alliance Finance"), issued an aggregate principal amount of $400.0 million of senior unsecured notes due 2025 ("Senior Notes") in a private placement to qualified institutional buyers.  The Senior Notes have a term of eight years, maturing on May 1, 2025 (the "Term") and accrue interest at an annual rate of 7.5%.  Interest is payable semi-annually in arrears on each May 1 and November 1.  The indenture governing the Senior Notes contains customary terms, events of default and covenants relating to, among other things, the incurrence of debt, the payment of distributions or similar restricted payments, undertaking transactions with affiliates and limitations on asset sales. During the six months ended June 30, 2023, we repurchased $60.8 million of our Senior Notes. The gain on extinguishment of the Senior Notes is immaterial.  In July 2023, we redeemed an additional $50.0 million of our Senior Notes.      

Accounts Receivable Securitization.  Certain direct and indirect wholly owned subsidiaries of our Intermediate Partnership are party to a $60.0 million accounts receivable securitization facility ("Securitization Facility"). Under the Securitization Facility, certain subsidiaries sell certain trade receivables on an ongoing basis to our Intermediate Partnership, which then sells the trade receivables to AROP Funding, LLC ("AROP Funding"), a wholly owned bankruptcy-remote special purpose subsidiary of our Intermediate Partnership, which in turn borrows on a revolving basis up to $60.0 million secured by the trade receivables. After the sale, Alliance Coal, as servicer of the assets, collects the receivables on behalf of AROP Funding. The Securitization Facility bears interest based on a short-term bank yield index. On June 30, 2023, we had $11.7 million of letters of credit outstanding with $48.3 million available for borrowing under the Securitization Facility. The agreement governing the Securitization Facility contains customary terms and conditions, including limitations with regards to certain customer credit ratings. In January 2023, we extended the term of the Securitization Facility to January 2024. The Securitization Facility was previously scheduled to mature in January 2023. At June 30, 2023, we did not have any outstanding borrowings under the Securitization Facility.

November 2019 Equipment Financing.  On November 6, 2019, the Intermediate Partnership entered into an equipment financing arrangement accounted for as debt, wherein the Intermediate Partnership received $53.1 million in exchange for conveying its interest in certain equipment owned indirectly by the Intermediate Partnership and entering into a master lease agreement for that equipment (the "November 2019 Equipment Financing").  The November 2019 Equipment Financing contains customary terms and events of default and an implicit interest rate of 4.75%, providing for a four-year term with forty-seven monthly payments of $1.0 million and a balloon payment of $11.6 million upon maturity on November 6, 2023.  Upon maturity, the equipment will revert to the Intermediate Partnership.  

June 2020 Equipment Financing.  On June 5, 2020, the Intermediate Partnership entered into an equipment financing arrangement accounted for as debt, wherein the Intermediate Partnership received $14.7 million in exchange for conveying its interest in certain equipment owned indirectly by the Intermediate Partnership and entering into a master lease agreement for that equipment (the "June 2020 Equipment Financing"). The June 2020 Equipment Financing contains customary terms and events of default and provides for forty-eight monthly payments with an implicit interest rate of 6.1%, maturing on June 5, 2024. Upon maturity, the equipment will revert to the Intermediate Partnership.

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7.INCOME TAXES

Components of income tax expense are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Current:
Federal	$	3,935	$	6,175	$	8,247	$	11,209
State		272		445		573		831
		4,207		6,620		8,820		12,040
Deferred:
Federal		(190)		(255)		(521)		34,665
State		(18)		(34)		(59)		2,341
		(208)		(289)		(580)		37,006
Income tax expense	$	3,999	$	6,331	$	8,240	$	49,046

On March 15, 2022, Alliance Minerals changed its U.S. federal income tax status from a pass-through entity to a taxable entity via a "check the box" election (the "Tax Election"), which became effective January 1, 2022. The Tax Election resulted in the recognition of an initial deferred tax liability of $37.3 million and a corresponding increase to income tax expense for the six months ended June 30, 2022.

The effective income tax rate for our income tax expense for the three months ended June 30, 2023 and 2022 and the six months ended June 30, 2023 is less than the federal statutory rate, primarily due to the portion of income not subject to income taxes. The effective income tax rate for our income tax expense for the six months ended June 30, 2022 is greater than the federal statutory rate, primarily due to the effect of the Tax Election, partially offset by the portion of income not subject to income taxes.

Our 2019 through 2022 tax years remain open to examination by tax authorities. We have been notified by the Internal Revenue Service that lower-tier partnership income tax returns for the tax year ended December 31, 2020 have been selected for audit.

8.VARIABLE INTEREST ENTITIES

Cavalier Minerals

On November 10, 2014, our subsidiary, Alliance Minerals, and Bluegrass Minerals Management, LLC ("Bluegrass Minerals") entered into a limited liability company agreement (the "Cavalier Agreement") to create Cavalier Minerals JV, LLC ("Cavalier Minerals"), which was formed to indirectly acquire oil & gas mineral interests through its ownership in AllDale I & II.  Alliance Minerals owns a 96% member interest in Cavalier Minerals, and Bluegrass Minerals owns a 4% member interest in Cavalier Minerals and a profits interest which entitles it to receive distributions equal to 25% of all distributions (including in liquidation) after all members have recovered their investment.  Distributions with respect to Bluegrass Minerals' profits interest are offset by all distributions received by Bluegrass Minerals from the former general partners of AllDale I & II.  All members have recovered their investment and Bluegrass Minerals began receiving its profits interest distributions in late 2022.  We hold the managing member interest in Cavalier Minerals.  

We have concluded that Cavalier Minerals is a variable interest entity ("VIE") which we consolidate as the primary beneficiary because we are the managing member and a substantial equity owner in Cavalier Minerals.  Bluegrass Minerals' equity ownership of Cavalier Minerals is accounted for as noncontrolling ownership interest in our condensed consolidated balance sheets.  In addition, earnings attributable to Bluegrass Minerals are recognized as noncontrolling interest in our condensed consolidated statements of income.

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AllDale III

In February 2017, Alliance Minerals committed to directly invest $30.0 million in AllDale Minerals III, LP ("AllDale III") which was created for similar investment purposes as AllDale I & II.  Alliance Minerals completed funding of this commitment in 2018. Alliance Minerals' limited partner interest in AllDale III is 13.9%.

The AllDale III Partnership Agreement includes a 25% profits interest for the general partner, subject to a return hurdle equal to the greater of 125% of cumulative capital contributions and a 10% internal rate of return, and following an 80/20 "catch-up" provision for the general partner.  

Since AllDale III is structured as a limited partnership with the limited partners (1) not having the ability to remove the general partner and (2) not participating significantly in the operational decisions, we concluded that AllDale III is a VIE.  We are not the primary beneficiary of AllDale III as we do not have the power to direct the activities that most significantly impact AllDale III's economic performance.  We account for our ownership interest in the income or loss of AllDale III as an equity method investment.  We record equity income or loss based on AllDale III's distribution structure. See Note 9 – Investments for more information.

Francis

On April 5, 2022, we invested $20 million in Francis Renewable Energy, LLC ("Francis"), in the form of a convertible note. Our convertible note matured on April 1, 2023 and was converted into a 17.8% preferred equity interest in Francis.  Prior to conversion, we had determined the note more closely represented equity as opposed to debt. Therefore, we accounted for the convertible note as an equity contribution even though we did not participate in Francis' earnings or losses and were not eligible to receive distributions during the term of the note. Subsequent to the conversion on April 1, 2023, we participate in earnings and losses and are eligible to receive distributions.

We have concluded that Francis is a VIE as the management structure is similar to a limited partnership with the non-managing members (i) not having the ability to remove the managing member and (ii) not participating significantly in the operational decisions.  We are not the primary beneficiary of Francis as we do not have the power to direct the activities that most significantly impact Francis's economic performance. We account for our ownership interest in the income or loss of Francis as an equity method investment. Following the conversion of our note to preferred equity, we record equity income or loss based on Francis' distribution structure. See Note 9 – Investments for more information.

NGP ETP IV

On June 2, 2022, we committed to purchase $25.0 million of limited partner interests in NGP ETP IV, L.P. ("NGP ETP IV"), a private equity fund sponsored by NGP and focused on investments that are part of the global transition toward a lower carbon economy. This commitment represents a 3.6% interest in NGP ETP IV. As of June 30, 2023, we have funded $5.4 million of this commitment.  

We have concluded that NGP ETP IV is a VIE as it is structured as a limited partnership with limited partners (i) not having the ability to remove the general partner and (ii) not participating significantly in the operational decisions. We are not the primary beneficiary of NGP ETP IV as we do not have the power to direct the activities that most significantly impact NGP ETP IV's economic performance.  We account for our ownership interest in the income or loss of NGP ETP IV as an equity method investment. See Note 9 – Investments for more information.

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9.           INVESTMENTS

AllDale III

As discussed in Note 8 – Variable Interest Entities, we account for our ownership interest in the income or loss of AllDale III as an equity method investment.  We record equity income or loss based on AllDale III's distribution structure.  The changes in our equity method investment in AllDale III for each of the periods presented were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Beginning balance	$	24,695	$	26,194	$	25,284	$	26,325
Equity method investment income		716		1,585		1,141		2,468
Distributions received		(960)		(1,501)		(1,974)		(2,515)
Ending balance	$	24,451	$	26,278	$	24,451	$	26,278

Francis

As discussed in Note 8 – Variable Interest Entities, we account for our ownership interest in the income or loss of Francis as an equity method investment. Prior to the conversion of our convertible note, we did not participate in Francis' earnings or losses; however, upon conversion on April 1, 2023 we began participating. As a development stage company, Francis depends on capital contributions to meet its operating and debt obligations.  We currently believe that the carrying value of our investment is recoverable; however, if Francis is unable to raise sufficient funds to continue its operations and meet its debt obligations, it could have an adverse effect on our investment. The changes in our equity method investment in Francis for three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Beginning balance	$	20,000	$	—	$	20,000	$	—
Contributions		—		20,000		—		20,000
Equity method investment loss		(2,620)		—		(2,620)		—
Ending balance	$	17,380	$	20,000	$	17,380	$	20,000

NGP ETP IV

As discussed in Note 8 – Variable Interest Entities, we account for our ownership interest in the income or loss of NGP ETP IV as an equity method investment. The changes in our equity method investment in NGP ETP IV for three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Beginning balance	$	4,254	$	—	$	4,087	$	—
Contributions		794		110		1,334		110
Equity method investment loss		(90)		—		(463)		—
Ending balance	$	4,958	$	110	$	4,958	$	110

Infinitum

We hold $42.0 million of Series D Preferred Stock in Infinitum Electric, Inc. ("Infinitum"), a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators.  Our preferred stock provides for non-cumulative dividends when and if declared by Infinitum's board of directors. Each share is convertible, at any time, at our option, into shares of common stock of Infinitum. We account for our ownership interest in Infinitum as an equity

12

investment without a readily determinable fair value.  It is not practicable to estimate the fair value of our investment in Infinitum because of the lack of a quoted market price for our ownership interests.  Therefore, we use a measurement alternative other than fair value to account for our investment. There have been no fair value adjustments in our investment in Infinitum subsequent to our purchases.  During the period we have not observed any price changes that have occurred to identical or similar securities sold by Infinitum that would indicate an adjustment to the fair value of our investment is warranted.  

10.PARTNERS' CAPITAL

Distributions

Distributions paid or declared during 2022 and 2023 were as follows:

Payment Date	Per Unit Cash Distribution		Total Cash Distribution
			(in thousands)
February 14, 2022	$	0.2500	$	32,750
May 13, 2022		0.3500		45,810
August 12, 2022		0.4000		52,338
November 14, 2022		0.5000		65,449
Total	$	1.5000	$	196,347
February 14, 2023	$	0.7000	$	91,938
May 15, 2023		0.7000		90,930
August 14, 2023 (1)		0.7000		—
Total	$	2.1000	$	182,868

(1) On July 28, 2023, we declared this quarterly distribution payable on August 14, 2023 to all unitholders of record as of August 7, 2023.  

Unit Repurchase Program

In January 2023, the board of directors of MGP authorized a $93.5 million increase to the unit repurchase program, which had $6.5 million of available capacity as of December 31, 2022. As a result, we are authorized to repurchase up to a total of $100.0 million of ARLP common units. During the six months ended June 30, 2023, we repurchased and retired 929,842 units at an average unit price of $20.90 for an aggregate purchase price of $19.4 million. Since inception of the unit repurchase program, we have repurchased and retired 6,390,446 units at an average unit price of $17.67 for an aggregate purchase price of $112.9 million.

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Change in Partners' Capital

The following tables present the quarterly change in Partners' Capital for the six months ended June 30, 2023 and 2022:

						Accumulated
	Number of	Limited		General		Other
	Limited Partner	Partners'		Partner's		Comprehensive		Noncontrolling		Total Partners'
	Units	Capital		Capital		Income (Loss)		Interest		Capital
	(in thousands, except unit data)
Balance at January 1, 2023	127,195,219	$	1,656,025	$	66,548	$	(41,054)	$	26,507	$	1,708,026
Comprehensive income:
Net income	—		189,801		1,384		—		1,493		192,678
Actuarially determined long-term liability adjustments	—		—		—		565		—		565
Total comprehensive loss											193,243
Settlement of deferred compensation plans	860,060		(9,320)		—		—		—		(9,320)
Purchase of units under unit repurchase program	(860,060)		(18,209)		—		—		—		(18,209)
Common unit-based compensation	—		2,830		—		—		—		2,830
Distributions on deferred common unit-based compensation	—		(2,901)		—		—		—		(2,901)
Distributions from consolidated company to affiliate noncontrolling interest	—		—		—		—		(2,288)		(2,288)
JC Resources acquisition - See Note 1	—		(7,251)		(64,999)		—		—		(72,250)
Cash retained by JC Resources in acquisition - See Note 1	—		—		(2,933)		—		—		(2,933)
Distributions to Partners	—		(89,037)		—		—		—		(89,037)
Balance at March 31, 2023	127,195,219		1,721,938		—		(40,489)		25,712		1,707,161
Comprehensive income:
Net income	—		169,790		—		—		1,515		171,305
Actuarially determined long-term liability adjustments	—		—		—		563		—		563
Total comprehensive income											171,868
Settlement of deferred compensation plans	—		(1,014)		—		—		—		(1,014)
Purchase of units under unit repurchase program	(69,782)		(1,223)		—		—		—		(1,223)
Common unit-based compensation	—		3,121		—		—		—		3,121
Distributions on deferred common unit-based compensation	—		(1,895)		—		—		—		(1,895)
Distributions from consolidated company to noncontrolling interest	—		—		—		—		(2,226)		(2,226)
Distributions to Partners	—		(89,035)		—		—		—		(89,035)
Balance at June 30, 2023	127,125,437	$	1,801,682	$	—	$	(39,926)	$	25,001	$	1,786,757

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						Accumulated
	Number of	Limited		General		Other
	Limited Partner	Partners'		Partner's		Comprehensive		Noncontrolling		Total Partners'
	Units	Capital		Capital *		Income (Loss)		Interest		Capital *
	(in thousands, except unit data)
Balance at January 1, 2022	127,195,219	$	1,279,183	$	68,075	$	(64,229)	$	11,115	$	1,294,144
Comprehensive income:
Net income	—		36,652		1,431		—		290		38,373
Actuarially determined long-term liability adjustments	—		—		—		790		—		790
Total comprehensive income											39,163
Common unit-based compensation	—		2,640		—		—		—		2,640
Distributions on deferred common unit-based compensation	—		(950)		—		—		—		(950)
Distributions from consolidated company to affiliate noncontrolling interest	—		—		—		—		(298)		(298)
Cash retained by JC Resources in acquisition - See Note 1	—		—		(1,590)		—		—		(1,590)
Distributions to Partners	—		(31,800)		—		—		—		(31,800)
Balance at March 31, 2022	127,195,219		1,285,725		67,916		(63,439)		11,107		1,301,309
Comprehensive income:
Net income	—		161,478		2,050		—		323		163,851
Actuarially determined long-term liability adjustments	—		—		—		794		—		794
Total comprehensive loss											164,645
Common unit-based compensation	—		2,340		—		—		—		2,340
Distributions on deferred common unit-based compensation	—		(1,292)		—		—		—		(1,292)
Distributions from consolidated company to noncontrolling interest	—		—		—		—		(325)		(325)
Cash retained by JC Resources in acquisition - See Note 1	—		—		(2,484)		—		—		(2,484)
Distributions to Partners	—		(44,518)		—		—		—		(44,518)
Balance at June 30, 2022	127,195,219	$	1,403,733	$	67,482	$	(62,645)	$	11,105	$	1,419,675

* Recast as discussed in Note 1 – Organization and Presentation.  

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11.REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table illustrates the disaggregation of our revenues by type, including a reconciliation to our segment presentation as presented in Note 16 – Segment Information.

	Coal Operations				Royalties				Other,
	Illinois								Corporate and
	Basin		Appalachia		Oil & Gas		Coal		Elimination		Consolidated
	(in thousands)
Three Months Ended June 30, 2023
Coal sales	$	331,813	$	228,518	$	—	$	—	$	—	$	560,331
Oil & gas royalties		—		—		33,087		—		—		33,087
Coal royalties		—		—		—		16,567		(16,567)		—
Transportation revenues		21,178		9,349		—		—		—		30,527
Other revenues		2,401		375		325		—		14,790		17,891
Total revenues	$	355,392	$	238,242	$	33,412	$	16,567	$	(1,777)	$	641,836
Three Months Ended June 30, 2022
Coal sales	$	290,389	$	241,418	$	—	$	—	$	—	$	531,807
Oil & gas royalties *		—		—		39,287		—		—		39,287
Coal royalties		—		—		—		14,525		(14,525)		—
Transportation revenues		21,449		13,936		—		—		—		35,385
Other revenues		1,659		328		669		—		10,743		13,399
Total revenues	$	313,497	$	255,682	$	39,956	$	14,525	$	(3,782)	$	619,878
Six Months Ended June 30, 2023
Coal sales	$	668,723	$	470,392	$	—	$	—	$	—	$	1,139,115
Oil & gas royalties		—		—		67,584		—		—		67,584
Coal royalties		—		—		—		32,080		(32,080)		—
Transportation revenues		42,506		18,259		—		—		—		60,765
Other revenues		4,569		850		1,365		—		30,510		37,294
Total revenues	$	715,798	$	489,501	$	68,949	$	32,080	$	(1,570)	$	1,304,758
Six Months Ended June 30, 2022
Coal sales	$	544,294	$	375,873	$	—	$	—	$	—	$	920,167
Oil & gas royalties *		—		—		72,683		—		—		72,683
Coal royalties		—		—		—		29,692		(29,692)		—
Transportation revenues		40,340		24,417		—		—		—		64,757
Other revenues		3,559		691		793		—		20,650		25,693
Total revenues	$	588,193	$	400,981	$	73,476	$	29,692	$	(9,042)	$	1,083,300

* Recast as discussed in Note 1 – Organization and Presentation.

The following table illustrates the amount of our transaction price for all current coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied as of June 30, 2023 and disaggregated by segment and contract duration.

							2026 and
	2023		2024		2025		Thereafter		Total
	(in thousands)
Illinois Basin Coal Operations coal revenues	$	762,478	$	925,042	$	344,601	$	243,600	$	2,275,721
Appalachia Coal Operations coal revenues		452,387		574,481		325,425		1,600		1,353,893
Total coal revenues (1)	$	1,214,865	$	1,499,523	$	670,026	$	245,200	$	3,629,614

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(1) Coal revenues generally consists of consolidated revenues excluding our Oil & Gas Royalties segment as well as intercompany revenues from our Coal Royalties segment.

12.EARNINGS PER LIMITED PARTNER UNIT

We utilize the two-class method in calculating basic and diluted earnings per limited partner unit ("EPU").  Subsequent to the JC Resources Acquisition, which is discussed in more detail in Note 1 – Organization and Presentation, net income attributable to ARLP is allocated to limited partners and participating securities with nonforfeitable distributions or distribution equivalents, while net losses attributable to ARLP are allocated only to limited partners but not to participating securities.  Prior to the JC Resources Acquisition, in addition to limited partners and participating securities allocations, amounts are also allocated to our general partner for historical earnings from the mineral interests acquired in the JC Resources Acquisition.  

Our participating securities are outstanding restricted unit awards under our Long-Term Incentive Plan ("LTIP") and phantom units in notional accounts under our Supplemental Executive Retirement Plan ("SERP") and the MGP Amended and Restated Deferred Compensation Plan for Directors ("Directors' Deferred Compensation Plan").

The following is a reconciliation of net income attributable to ARLP used for calculating basic and diluted earnings per unit and the weighted-average units used in computing EPU for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022 (1)
	(in thousands, except per unit data)
Net income attributable to ARLP	$	169,790	$	163,528	$	360,975	$	201,611
Adjustment:
General partner's interest in net income attributable to ARLP		—		(2,050)		(1,384)		(3,481)
Limited partners' interest in net income attributable to ARLP		169,790		161,478		359,591		198,130
Less:
Distributions to participating securities		(2,396)		(1,720)		(4,828)		(3,272)
Undistributed earnings attributable to participating securities		(2,071)		(3,645)		(4,981)		(3,245)
Net income attributable to ARLP available to limited partners	$	165,323	$	156,113	$	349,782	$	191,613
Weighted-average limited partner units outstanding – basic and diluted		127,183		127,195		127,236		127,195
Earnings per limited partner unit - basic and diluted (2)	$	1.30	$	1.23	$	2.75	$	1.51

(1) Recast as discussed in Note 1 – Organization and Presentation.

(2) Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive.  The combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 2,577 and 2,896 for the three and six months ended June 30, 2023, respectively, and 3,529 and 3,289 for the three and six months ended June 30, 2022, respectively, were considered anti-dilutive under the treasury stock method.

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13.WORKERS' COMPENSATION AND PNEUMOCONIOSIS

The changes in the workers' compensation liability, including current and long-term liability balances, for each of the periods presented were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Beginning balance	$	50,017	$	53,206	$	49,452	$	53,448
Changes in accruals		2,196		2,271		6,070		4,546
Payments		(2,646)		(3,278)		(6,505)		(6,082)
Interest accretion		551		287		1,101		574
Valuation loss (gain) (1)		990		(5,265)		990		(5,265)
Ending balance	$	51,108	$	47,221	$	51,108	$	47,221

(1) Our estimate of the liability for the present value of current workers′ compensation benefits is based on our actuarial calculations.  Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claims development patterns, mortality, medical costs and interest rates.  The valuation loss in 2023 is due to adverse claims development.  The valuation gain in 2022 is due to an increase in the discount rate from 2.41% on December 31, 2021 to 4.22% on June 30, 2022.

We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a claim have been met.  The deductible level may vary by claim year.  Our workers' compensation liability above is presented on a gross basis and does not include our expected receivables on our insurance policy.  Our receivables for traumatic injury claims under this policy as of June 30, 2023 are $4.1 million and are included in Other long-term assets on our condensed consolidated balance sheet.

Certain of our mine operating entities are liable under state statutes and the Federal Coal Mine Health and Safety Act of 1969, as amended, to pay pneumoconiosis, or black lung, benefits to eligible employees and former employees and their dependents.  Components of the net periodic benefit cost for each of the periods presented are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Service cost	$	675	$	954	$	1,344	$	1,901
Interest cost (1)		1,238		749		2,476		1,496
Net amortization (1)		346		259		691		519
Net periodic benefit cost	$	2,259	$	1,962	$	4,511	$	3,916

(1) Interest cost and net amortization are included in the Other income (expense) line item within our condensed consolidated statements of income.

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14.COMMON UNIT-BASED COMPENSATION PLANS

Long-Term Incentive Plan

A summary of non-vested LTIP grants as of and for the six months ended June 30, 2023 is as follows:

	Number of units	Weighted average grant date fair value per unit		Intrinsic value
				(in thousands)
Non-vested grants at January 1, 2023	3,697,133	$	7.40		75,126
Granted (1)	447,225		21.54
Vested (2)	(1,291,330)		5.02
Forfeited	(145,584)		6.86
Non-vested grants at June 30, 2023	2,707,444		10.90		50,061

(1) The restricted units granted during 2023 have certain minimum-value guarantees per unit, regardless of whether or not the awards vest.

(2) During the six months ended June 30, 2023, we issued 860,060 unrestricted common units to the LTIP participants.  The remaining vested units were settled in cash to satisfy tax withholding obligations of the LTIP participants.

LTIP expense for grants of restricted units was $2.7 million and $2.1 million for the three months ended June 30, 2023 and 2022, respectively, and $4.9 million and $4.4 million for the six months ended June 30, 2023 and 2022, respectively. The total obligation associated with LTIP grants of restricted units as of June 30, 2023 was $14.1 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets.  As of June 30, 2023, there was $15.4 million in total unrecognized compensation expense related to the non-vested LTIP restricted unit grants that are expected to vest.  That expense is expected to be recognized over a weighted-average period of 1.1 years.

Supplemental Executive Retirement Plan and Directors' Deferred Compensation Plan

A summary of SERP and Directors' Deferred Compensation Plan activity as of and for the six months ended June 30, 2023 is as follows:

	Number of units	Weighted average grant date fair value per unit		Intrinsic value
				(in thousands)
Phantom units outstanding as of January 1, 2023	742,540	$	20.28	$	15,088
Granted	49,480		19.72
Settled (1)	(49,331)		20.27
Phantom units outstanding as of June 30, 2023	742,689		20.38		13,732

(1) During the six months ended June 30, 2023, we purchased 27,576 ARLP common units on the open market to settle the account of a participant under the SERP.  Units purchased and delivered to the participant were net of units settled in cash to satisfy tax withholding obligations.

Total SERP and Directors' Deferred Compensation Plan expense was $0.6 million and $0.3 million for the three months ended June 30, 2023 and 2022, respectively, and $1.2 million and $0.6 million for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, the total obligation associated with the SERP and Directors' Deferred Compensation Plan was $15.1 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets.

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15.COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

Eligible employees at certain of our mining operations participate in a defined benefit plan (the "Pension Plan") that we sponsor.  The Pension Plan is currently closed to new applicants and participants in the Pension Plan are no longer receiving benefit accruals for service.  The benefit formula for the Pension Plan is a fixed dollar unit based on years of service.  Components of the net periodic benefit cost for each of the periods presented are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Interest cost	$	1,296	$	936	$	2,591	$	1,868
Expected return on plan assets		(1,517)		(1,664)		(3,115)		(3,329)
Amortization of prior service cost		46		46		93		93
Amortization of net loss		171		489		344		972
Net periodic benefit credit (1)	$	(4)	$	(193)	$	(87)	$	(396)

(1) Net periodic benefit credit for the Pension Plan is included in the Other income (expense) line item within our condensed consolidated statements of income.

As a result of certain pension plan relief provided by the American Rescue Plan Act enacted in March 2021, we do not expect to make contributions to the Pension Plan during 2023.

16.SEGMENT INFORMATION

We operate in the United States as a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic and international utilities, metallurgical and industrial users as well as royalty income from oil & gas mineral interests. In addition, we continue to position ourselves as a reliable energy partner for the future as we pursue opportunities that support the advancement of energy and related infrastructure. We aggregate multiple operating segments into four reportable segments, Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties. We also have an "all other" category referred to as Other, Corporate and Elimination. Our two coal operations reportable segments correspond to major coal producing regions in the eastern United States with similar economic characteristics including coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues. The two coal operations reportable segments include seven mining complexes operating in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia and a coal loading terminal in Indiana on the Ohio River. Our Oil & Gas Royalties reportable segment includes our oil & gas mineral interests which are located primarily in the Permian (Delaware and Midland), Anadarko (SCOOP/STACK) and Williston (Bakken) basins. The operations within our Oil & Gas Royalties reportable segment primarily include receiving royalties and lease bonuses for our oil & gas mineral interests. Our Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties, which are either (a) leased to our mining complexes or (b) near our coal mining operations but not yet leased.

The Illinois Basin Coal Operations reportable segment includes (a) the Gibson County Coal mining complex, (b) the Warrior mining complex, (c) the River View mining complex and (d) the Hamilton mining complex. The segment also includes our Mt. Vernon Transfer Terminal, LLC ("Mt. Vernon") coal loading terminal in Indiana which operates on the Ohio River, Mid-America Carbonates, LLC and other support services, and our non-operating mining complexes.      

The Appalachia Coal Operations reportable segment includes (a) the Mettiki mining complex, (b) the Tunnel Ridge mining complex and (c) the MC Mining mining complex.

The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by AR Midland, LP ("AR Midland") and AllDale I & II and includes Alliance Minerals' equity interests in both AllDale III (Note 9 – Investments) and Cavalier Minerals.

The Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties that are (a) leased to certain of our mining complexes in both the Illinois Basin Coal Operations and

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Appalachia Coal Operations reportable segments or (b) located near our operations and external mining operations. Approximately two-thirds of the coal sold by our Coal Operations' mines is leased from our Coal Royalties entities.

Other, Corporate and Elimination includes marketing and administrative activities, Matrix Design Group, LLC, its subsidiaries, and Alliance Design Group, LLC (collectively referred to as the "Matrix Group"), our investments in Francis, Infinitum and NGP ETP IV (see Note 9 – Investments), Wildcat Insurance, which assists the ARLP Partnership with its insurance requirements, AROP Funding and Alliance Finance (both discussed in Note 6 – Long-Term Debt) and other miscellaneous activities. The eliminations included in Other, Corporate and Elimination primarily represent the intercompany coal royalty transactions described above between our Coal Royalties reportable segment and our coal operations' mines.

Reportable segment results are presented below.

	Coal Operations				Royalties				Other,
	Illinois								Corporate and
	Basin		Appalachia		Oil & Gas		Coal		Elimination		Consolidated
	(in thousands)
Three Months Ended June 30, 2023
Revenues - Outside	$	355,392	$	238,242	$	33,412	$	—	$	14,790	$	641,836
Revenues - Intercompany		—		—		—		16,567		(16,567)		—
Total revenues (2)		355,392		238,242		33,412		16,567		(1,777)		641,836
Segment Adjusted EBITDA Expense (3)		214,666		119,319		3,562		5,597		(4,710)		338,434
Segment Adjusted EBITDA (4)		119,551		109,573		29,050		10,970		222		269,366
Capital expenditures (5)		57,469		31,309		40		—		725		89,543
Three Months Ended June 30, 2022
Revenues - Outside (1)	$	313,497	$	255,682	$	39,956	$	—	$	10,743	$	619,878
Revenues - Intercompany		—		—		—		14,525		(14,525)		—
Total revenues (2)		313,497		255,682		39,956		14,525		(3,782)		619,878
Segment Adjusted EBITDA Expense (1) (3)		194,697		117,369		3,582		5,398		(4,624)		316,422
Segment Adjusted EBITDA (1) (4)		97,352		124,377		37,638		9,127		839		269,333
Capital expenditures		35,343		22,491		—		—		4,995		62,829
Six Months Ended June 30, 2023
Revenues - Outside	$	715,798	$	489,501	$	68,949	$	—	$	30,510	$	1,304,758
Revenues - Intercompany		—		—		—		32,080		(32,080)		—
Total revenues (2)		715,798		489,501		68,949		32,080		(1,570)		1,304,758
Segment Adjusted EBITDA Expense (3)		421,735		245,118		7,986		10,985		(8,094)		677,730
Segment Adjusted EBITDA (4)		251,559		226,123		59,095		21,095		3,441		561,313
Total assets		830,821		470,929		758,816		322,926		404,451		2,787,943
Capital expenditures (5)		119,451		63,814		42		400		1,310		185,017
Six Months Ended June 30, 2022
Revenues - Outside (1)	$	588,193	$	400,981	$	73,476	$	—	$	20,650	$	1,083,300
Revenues - Intercompany		—		—		—		29,692		(29,692)		—
Total revenues (2)		588,193		400,981		73,476		29,692		(9,042)		1,083,300
Segment Adjusted EBITDA Expense (1) (3)		372,286		201,084		6,859		10,217		(12,568)		577,878
Segment Adjusted EBITDA (1) (4)		175,567		175,480		68,473		19,475		3,525		442,520
Total assets (1)		748,291		457,724		734,760		288,509		171,389		2,400,673
Capital expenditures		71,890		40,836		—		—		9,256		121,982

(1) Recast for the JC Resources Acquisition as discussed in Note 1 – Organization and Presentation.

(2) Revenues included in the Other, Corporate and Elimination column are attributable to intercompany eliminations, which are primarily intercompany coal royalty eliminations, outside revenues at the Matrix Group and other outside miscellaneous sales and revenue activities.

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(3) Segment Adjusted EBITDA Expense includes operating expenses, coal purchases, if applicable, and other income. Transportation expenses are excluded as transportation revenues are recognized in an amount equal to transportation expenses when title passes to the customer.  

The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to Operating expenses (excluding depreciation, depletion and amortization):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Operating expenses (excluding depreciation, depletion and amortization)	$	334,402	$	316,850	$	673,125	$	578,873
Outside coal purchases		4,209		151		4,209		151
Other expense (income)		(177)		(579)		396		(1,146)
Segment Adjusted EBITDA Expense	$	338,434	$	316,422	$	677,730	$	577,878

(4) Segment Adjusted EBITDA is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization, and general and administrative expenses.  Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments.  Consolidated Segment Adjusted EBITDA is reconciled to net income as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Net income	$	171,305	$	163,851	$	363,983	$	202,224
Noncontrolling interest		(1,515)		(323)		(3,008)		(613)
Net income attributable to ARLP	$	169,790	$	163,528	$	360,975	$	201,611
General and administrative		20,130		22,480		41,215		41,102
Depreciation, depletion and amortization		68,639		67,690		134,189		131,830
Interest expense, net		6,808		9,304		16,694		18,931
Income tax expense		3,999		6,331		8,240		49,046
Consolidated Segment Adjusted EBITDA	$	269,366	$	269,333	$	561,313	$	442,520

(5) Capital expenditures for the three and six months ended June 30, 2023 exclude $1.1 million and $3.9 million, respectively, paid towards the Acquisition Agreement.  Capital expenditures for the six months ended June 30, 2023 also exclude the $72.3 million paid for the JC Resources Acquisition (See Note 2 – Acquisitions).

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ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Significant relationships referenced in this management's discussion and analysis of financial condition and results of operations include the following:

● References to "we," "us," "our" or "ARLP Partnership" mean the business and operations of Alliance Resource Partners, L.P., the parent company, as well as its consolidated subsidiaries.

● References to "ARLP" mean Alliance Resource Partners, L.P., individually as the parent company, and not on a consolidated basis.

● References to "MGP" mean Alliance Resource Management GP, LLC, ARLP's general partner.  

● References to "Mr. Craft" mean Joseph W. Craft III, the Chairman, President and Chief Executive Officer of MGP.

● References to "Intermediate Partnership" mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P.

● References to "Alliance Coal" mean Alliance Coal, LLC, an indirect wholly owned subsidiary of ARLP.

● References to "Alliance Minerals" mean Alliance Minerals, LLC, an indirect wholly owned subsidiary of ARLP.

● References to "Alliance Resource Properties" mean Alliance Resource Properties, LLC, an indirect wholly owned subsidiary of ARLP.

Summary

We are a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic utilities, industrial users and international customers, as well as royalty income from oil & gas mineral interests located in strategic producing regions across the United States.  In addition, we continue to position ourselves as a reliable energy partner for the future as we pursue opportunities that support the advancement of energy and related infrastructure.  We intend to pursue strategic investments that leverage our core competencies and relationships with electric utilities, industrial customers, and federal and state governments.

We are currently the largest coal producer in the eastern United States with seven operating underground mining complexes near many of the major eastern utility generating plants and on major coal hauling railroads in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia, as well as a coal-loading terminal in Indiana. Two of our mines have loading facilities located on the banks of the Ohio River.

In addition to our mining operations, Alliance Resource Properties owns or leases substantially all of our measured, indicated and inferred coal mineral resources and the majority of our proved and probable coal mineral reserves in the Illinois and Appalachia Basins that are (a) leased to our internal mining complexes or (b) near other internal and external coal mining operations.

We currently own oil & gas mineral interests in approximately 65,000 net royalty acres in premier oil & gas producing regions of the United States, primarily in the Permian (Delaware and Midland), Anadarko (SCOOP/STACK), and Williston (Bakken) basins providing us with diversified exposure to industry-leading operators consistent with our general strategy to grow our oil & gas mineral interest business.

We have invested in energy and infrastructure opportunities including our investments in Francis Renewable Energy, LLC ("Francis"), Infinitum Electric, Inc. ("Infinitum"), and NGP ETP IV, L.P. ("NGP ETP IV"), which are in the businesses of, respectively, electric vehicle charging stations, electric motor manufacturing, and private equity investments in renewable energy, the electrification of our economy or the efficient use of energy.  

On January 27, 2023, we entered into a one-year collaborative agreement with a third party effective January 1, 2023, committing up to $35.0 million for the acquisition of oil & gas mineral interests in the Midland and Delaware basins (the "Acquisition Agreement").

On February 22, 2023, we acquired mineral interests in approximately 2,682 oil & gas net royalty acres in the Delaware Basin from JC Resources, LP ("JC Resources"), a related-party entity owned by Mr. Craft (the "JC Resources Acquisition").

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For more information about the Acquisition Agreement and the JC Resources Acquisition, please read "Item 1. Financial Statements (Unaudited)—Note 2 – Acquisitions" of this Quarterly Report on Form 10-Q.

We have four reportable segments, Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties. We also have an "all other" category referred to as Other, Corporate and Elimination. Our two coal operations reportable segments correspond to major coal producing regions in the eastern United States with similar economic characteristics including coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues. Our Oil & Gas Royalties reportable segment includes our oil & gas mineral interests. Our Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties, which are either (a) leased to our mining complexes or (b) near our coal mining operations but not yet leased.

● Illinois Basin Coal Operations reportable segment includes (a) the Gibson County Coal mining complex, (b) the Warrior mining complex, (c) the River View mining complex and (d) the Hamilton mining complex. The segment also includes our Mt. Vernon coal-loading terminal on the Ohio River in Indiana, Mid-America Carbonates, LLC and other support services, and our non-operating mining complexes.

● Appalachia Coal Operations reportable segment includes (a) the Mettiki mining complex, (b) the Tunnel Ridge mining complex and (c) the MC Mining mining complex.

● Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by AR Midland and AllDale I & II and includes Alliance Minerals' equity method investment in AllDale III. Please read "Item 1. Financial Statements (Unaudited)—Note 9 – Investments" of this Quarterly Report on Form 10-Q for more information on AllDale III.

● Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties. Approximately two-thirds of the coal sold by our Coal Operations' mines is leased from our Coal Royalties entities.

● Other, Corporate and Elimination includes marketing and administrative activities, Matrix Design Group, LLC, its subsidiaries and Alliance Design Group, LLC (collectively referred to as the "Matrix Group"), our investments in Francis, Infinitum, and NGP ETP IV, Wildcat Insurance, LLC, which assists the ARLP Partnership with its insurance requirements, AROP Funding, LLC ("AROP Funding") and Alliance Resource Finance Corporation ("Alliance Finance") and other miscellaneous activities.  The eliminations included in Other, Corporate and Elimination primarily represent the intercompany coal royalty transactions described above between our Coal Royalties reportable segment and our coal operations' mines.  Please read "Item 1. Financial Statements (Unaudited)—Note 9 – Investments" and —Note 6 – Long-Term Debt" of this Quarterly Report on Form 10-Q for more information on our investments in Francis, Infinitum and NGP ETP IV as well as AROP Funding and Alliance Finance.

Three Months Ended June 30, 2023 Compared to Three Months Ended June 30, 2022

	Three Months Ended June 30,
	2023		2022 (1)		2023		2022 (1)
	(in thousands)				(per ton / per BOE sold)
Coal - Tons sold		8,904		8,933		N/A		N/A
Coal - Tons produced		9,397		8,878		N/A		N/A
Coal - Coal sales	$	560,331	$	531,807	$	62.93	$	59.53
Coal - Segment Adjusted EBITDA Expense (2) (3)	$	337,025	$	313,724	$	37.85	$	35.12
Oil & Gas Royalties - BOE sold		765		544		N/A		N/A
Oil & Gas Royalties - Royalties (4)	$	33,087	$	39,287	$	43.27	$	72.31
Coal Royalties - Tons sold		5,118		5,268		N/A		N/A
Coal Royalties - Intercompany royalties	$	16,567	$	14,525	$	3.24	$	2.76

(1) Recast for the JC Resources Acquisition.  For more information, please read "Item 1. Financial Statements (Unaudited)—Note 1 – Organization and Presentation" of this Quarterly Report on Form 10-Q.

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(2) For a definition of Segment Adjusted EBITDA Expense and related reconciliation to comparable generally accepted accounting principles ("GAAP") financial measures, please see below under "—Reconciliation of GAAP 'Operating Expenses' to non-GAAP 'Segment Adjusted EBITDA Expense.'"

(3) Beginning in 2023, we redefined Coal - Segment Adjusted EBITDA Expense to reflect the activity of Alliance Coal, which is the holding company for our coal mining operations.  We have retrospectively adjusted Coal - Segment Adjusted EBITDA Expense in prior periods to be on the same basis.

(4) Average sales price per BOE is defined as oil & gas royalty revenues excluding lease bonus revenue divided by total BOE sold.

Total Revenues.  Total revenues for the three months ended June 30, 2023 ("2023 Quarter") increased 3.5% to $641.8 million compared to $619.9 million for the three months ended June 30, 2022 ("2022 Quarter") as a result of higher coal sales price per ton, partially offset primarily by lower average oil & gas sales price per BOE.  

Total operating expenses.  Total operating expenses increased to $457.9 million in the 2023 Quarter, compared to $442.6 million in the 2022 Quarter, due primarily to the sale of higher cost purchased coal and increased per ton costs on certain expense items discussed in more detail below.  

Net income attributable to ARLP.  Increased revenues, partially offset by higher total operating expenses, led to net income attributable to ARLP for the 2023 Quarter of $169.8 million, or $1.30 per basic and diluted limited partner unit, compared to $163.5 million, or $1.23 per basic and diluted limited partner unit, for the 2022 Quarter.  

Coal sales.  Coal sales increased $28.5 million or 5.4% to $560.3 million for the 2023 Quarter from $531.8 million for the 2022 Quarter.  The increase was attributable to a price variance of $30.2 million due to higher average coal sales prices, partially offset by a volume variance of $1.7 million resulting from reduced tons sold.  Improved price realizations in domestic markets during the 2023 Quarter drove coal sales prices higher by 5.7% in the 2023 Quarter to $62.93 per ton sold, compared to $59.53 per ton sold during the 2022 Quarter.  

Coal - Segment Adjusted EBITDA Expense.  Segment Adjusted EBITDA Expense for our coal operations increased 7.4% to $337.0 million, as a result of higher per ton costs.  Segment Adjusted EBITDA Expense per ton sold for our coal operations increased 7.8% to $37.85 per ton sold in the 2023 Quarter compared to $35.12 per ton in the 2022 Quarter, primarily due to certain cost increases, which are discussed below by category:

● Labor and benefit expenses per ton produced, excluding workers' compensation, increased 7.5% to $11.23 per ton in the 2023 Quarter from $10.45 per ton in the 2022 Quarter.  The increase of $0.78 per ton was primarily due to higher incentive benefits and direct labor costs at several mines.

● Workers' compensation expenses per ton produced increased to $0.52 per ton in the 2023 Quarter from $(0.15) per ton in the 2022 Quarter.  The increase of $0.67 per ton produced primarily reflects a favorable mid-year workers' compensation accrual adjustment in the 2022 Quarter due to an increase in the discount rate.  

● Maintenance expenses per ton produced increased 12.2% to $4.05 per ton in the 2023 Quarter from $3.61 per ton in the 2022 Quarter.  The increase of $0.44 per ton produced was primarily as a result of inflationary cost pressures.

● Production taxes and royalty expenses per ton incurred as a percentage of coal sales prices increased $0.27 per produced ton sold in the 2023 Quarter compared to the 2022 Quarter primarily as a result of higher price realizations, increased excise taxes per ton resulting from a reduced mix of export shipments and higher federal black lung excise tax as a result of the tax rate increasing effective October 1, 2022, partially offset by a favorable mix of tons sold mined in states without severance taxes.

● Outside coal purchases increased $4.1 million in the 2023 Quarter as a result of increased sales from purchased coal, which generally costs more on a per ton basis than our produced coal.

Segment Adjusted EBITDA Expense increases per ton were partially offset by the following decreases:

● Material and supplies expenses per ton produced decreased 6.1% to $12.84 per ton in the 2023 Quarter from $13.68 per ton in the 2022 Quarter.  The decrease of $0.84 per ton produced primarily reflects decreases of $0.69

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per ton for roof support, $0.16 per ton for outside expenses used in the mining process and $0.13 per ton in longwall subsidence expense, partially offset by an increase of $0.17 per ton for various preparation plant expenses.

● A $6.5 million non-cash contingent accrual in the 2022 Quarter related to our purchase of the Hamilton mine based upon a projection for higher coal sale price realizations in the future.

Oil & gas royalties.  Oil & gas royalty revenues decreased to $33.1 million in the 2023 Quarter compared to $39.3 million for the 2022 Quarter.  The decrease of $6.2 million was primarily due to lower average sales price per BOE, which decreased by 40.2%, partially offset by higher BOE volumes.

Other revenues.  Other revenues principally comprised Matrix Design sales, Mt. Vernon transloading revenues, oil & gas lease bonus revenues and other miscellaneous sales and revenue activities.  Other revenues increased to $17.9 million in the 2023 Quarter from $13.4 million in the 2022 Quarter.  The increase of $4.5 million was primarily due to increased sales of mining technology products by our Matrix Design subsidiary.

Transportation revenues and expenses.  Transportation revenues and expenses were $30.5 million and $35.4 million for the 2023 and 2022 Quarters, respectively.  The decrease of $4.9 million was primarily attributable to decreased average third-party transportation rates in the 2022 Quarter and reduced coal shipments for which we arrange third-party transportation.  Transportation revenues are recognized when title to the coal passes to the customer and recognized in an amount equal to the corresponding transportation expenses.

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Segment Adjusted EBITDA.  Our 2023 Quarter Segment Adjusted EBITDA of $269.4 million remained consistent with the 2022 Quarter Segment Adjusted EBITDA of $269.3 million.  

	Three Months Ended
	June 30,
	2023		2022 (1)		Increase (Decrease)
	(in thousands)
Segment Adjusted EBITDA
Illinois Basin Coal Operations	$	119,551	$	97,352	$	22,199	22.8	%
Appalachia Coal Operations		109,573		124,377		(14,804)	(11.9)	%
Oil & Gas Royalties		29,050		37,638		(8,588)	(22.8)	%
Coal Royalties		10,970		9,127		1,843	20.2	%
Other, Corporate and Elimination (2)		222		839		(617)	(73.5)	%
Total Segment Adjusted EBITDA (3)	$	269,366	$	269,333	$	33	0.0	%
Coal - Tons sold
Illinois Basin Coal Operations		6,066		5,831		235	4.0	%
Appalachia Coal Operations		2,838		3,102		(264)	(8.5)	%
Total tons sold		8,904		8,933		(29)	(0.3)	%
Coal sales
Illinois Basin Coal Operations	$	331,813	$	290,389	$	41,424	14.3	%
Appalachia Coal Operations		228,518		241,418		(12,900)	(5.3)	%
Total coal sales	$	560,331	$	531,807	$	28,524	5.4	%
Other revenues
Illinois Basin Coal Operations	$	2,401	$	1,659	$	742	44.7	%
Appalachia Coal Operations		375		328		47	14.3	%
Oil & Gas Royalties		325		669		(344)	(51.4)	%
Other, Corporate and Elimination		14,790		10,743		4,047	37.7	%
Total other revenues	$	17,891	$	13,399	$	4,492	33.5	%
Segment Adjusted EBITDA Expense
Illinois Basin Coal Operations	$	214,666	$	194,697	$	19,969	10.3	%
Appalachia Coal Operations		119,319		117,369		1,950	1.7	%
Oil & Gas Royalties		3,562		3,582		(20)	(0.6)	%
Coal Royalties		5,597		5,398		199	3.7	%
Other, Corporate and Elimination (2)		(4,710)		(4,624)		(86)	(1.9)	%
Total Segment Adjusted EBITDA Expense (3)	$	338,434	$	316,422	$	22,012	7.0	%
Oil & Gas Royalties
Volume - BOE (4)		765		544		221	40.6	%
Oil & gas royalties	$	33,087	$	39,287	$	(6,200)	(15.8)	%
Coal Royalties
Volume - Tons sold (5)		5,118		5,268		(150)	(2.8)	%
Intercompany coal royalties	$	16,567	$	14,525	$	2,042	14.1	%

(1) Recast for the JC Resources Acquisition.  For more information, please read "Item 1. Financial Statements (Unaudited)—Note 1 – Organization and Presentation" of this Quarterly Report on Form 10-Q.

(2) Other, Corporate and Elimination includes the elimination of intercompany coal royalty revenues and expenses between our Coal Royalties Segment and our Coal Operations Segments in addition to the expenses for the other miscellaneous activities included in this category.

(3) For definitions of Segment Adjusted EBITDA and Segment Adjusted EBITDA Expense and related reconciliations to their respective comparable GAAP financial measures, please see below under "—Reconciliation of GAAP 'net

27

income' to non-GAAP 'Segment Adjusted EBITDA' and reconciliation of GAAP 'Operating Expenses' to non-GAAP 'Segment Adjusted EBITDA Expense.'"

(4) Barrels of oil equivalent ("BOE") is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel).

(5) Represents tons sold by our Coal Operations Segments that were produced from coal reserves leased from our Coal Royalties Segment.

Illinois Basin Coal Operations – Segment Adjusted EBITDA increased 22.8% to $119.6 million in the 2023 Quarter from $97.4 million in the 2022 Quarter.  The increase of $22.2 million was primarily attributable to higher coal sales, which increased 14.3% to $331.8 million in the 2023 Quarter from $290.4 million in the 2022 Quarter, partially offset by increased operating expenses. The increase in coal sales reflects higher coal sales price realizations and increased sales volumes. Coal sales price per ton sold in the 2023 Quarter increased by 9.8% compared to the 2022 Quarter reflecting improved domestic price realizations. Tons sold increased by 4.0% compared to the 2022 Quarter due primarily to increased volumes from the Hamilton and Warrior mines.  Segment Adjusted EBITDA Expense increased 10.3% to $214.7 million in the 2023 Quarter from $194.7 million in the 2022 Quarter primarily as a result of increased sales volumes and higher expenses per ton.  Segment Adjusted EBITDA Expense per ton increased by 6.0% compared to the 2022 Quarter resulting from higher labor-related expenses and maintenance costs as well as increased sales-related expenses due to higher price realizations.

Appalachia Coal Operations – Segment Adjusted EBITDA decreased 11.9% to $109.6 million for the 2023 Quarter from $124.4 million in the 2022 Quarter.  The decrease of $14.8 million was primarily attributable to lower coal sales, which decreased 5.3% to $228.5 million in the 2023 Quarter from $241.4 million in the 2022 Quarter, and higher operating expenses.  Coal sales volumes decreased by 8.5% compared to the 2022 Quarter as a result of reduced export sales across the region and lower production from our MC Mining operation.  Coal sales prices increased by 3.5% compared to the 2022 Quarter primarily due to improved price realizations in domestic markets.  Segment Adjusted EBITDA Expense increased slightly to $119.3 million in the 2023 Quarter from $117.4 million in the 2022 Quarter due to higher per ton expenses, partially offset by reduced sales volumes.  Segment Adjusted EBITDA Expense per ton increased $4.20 per ton sold to $42.04 compared to $37.84 per ton sold in the 2022 Quarter, as a result of increased labor-related expenses, purchased coal, and higher inventory charges, partially offset by increased recoveries and lower selling expenses due to a greater mix of coal sales from operations in states with lower severance taxes per ton during the 2023 Quarter.

Oil & Gas Royalties – Segment Adjusted EBITDA decreased 22.8% to $29.1 million in the 2023 Quarter compared to $37.6 million in the 2022 Quarter primarily due to lower average sales price per BOE, partially offset by higher BOE sold.  Higher BOE volumes during the 2023 Quarter resulted from increased drilling and completion activities on our properties and additional volumes from oil & gas mineral interest acquisitions.

Coal Royalties – Segment Adjusted EBITDA increased 20.2% to $11.0 million for the 2023 Quarter compared to $9.1 million for the 2022 Quarter as a result of higher average royalty rates per ton received from our mining subsidiaries, partially offset by fewer royalty tons sold.

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

	Six Months Ended June 30,
	2023		2022 (1)		2023		2022 (1)
	(in thousands)				(per ton / per BOE sold)
Coal - Tons sold		17,373		17,095		N/A		N/A
Coal - Tons produced		18,641		18,056		N/A		N/A
Coal - Coal sales	$	1,139,115	$	920,167	$	65.57	$	53.83
Coal - Segment Adjusted EBITDA Expense (2) (3)	$	672,901	$	575,466	$	38.73	$	33.66
Oil & Gas Royalties - BOE sold		1,524		1,088		N/A		N/A
Oil & Gas Royalties - Royalties (4)	$	67,584	$	72,683	$	44.34	$	66.83
Coal Royalties - Tons sold		10,175		10,821		N/A		N/A
Coal Royalties - Intercompany royalties	$	32,080	$	29,692	$	3.15	$	2.74

(1) Recast for the JC Resources Acquisition.  For more information, please read "Item 1. Financial Statements (Unaudited)—Note 1 – Organization and Presentation" of this Quarterly Report on Form 10-Q.

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(2) For a definition of Segment Adjusted EBITDA Expense and related reconciliation to comparable generally accepted accounting principles ("GAAP") financial measures, please see below under "—Reconciliation of GAAP 'Operating Expenses' to non-GAAP 'Segment Adjusted EBITDA Expense.'"

(3) Beginning in 2023, we redefined Coal - Segment Adjusted EBITDA Expense to reflect the activity of Alliance Coal, which is the holding company for our coal mining operations.  We have retrospectively adjusted Coal - Segment Adjusted EBITDA Expense in prior periods to be on the same basis.

(4) Average sales price per BOE is defined as oil & gas royalty revenues excluding lease bonus revenue divided by total BOE sold.

Total Revenues.  Total revenues for the six months ended June 30, 2023 ("2023 Period") increased 20.4% to $1.30 billion compared to $1.08 billion for the six months ended June 30, 2022 ("2022 Period") as a result of significantly higher coal sales. Coal sales increased 23.8% to $1.14 billion in the 2023 Period from $920.2 million in the 2022 Period due to $204.0 million in higher price realizations in domestic markets, which reflects a 21.8% increase to $65.57 per ton sold compared to $53.83 per ton sold in the 2022 Period, and $15.0 million in increased coal sales volumes, reflecting a 1.6% increase compared to the 2022 Period.  

Total operating expenses.  Total operating expenses increased to $913.5 million in the 2023 Period, compared to $816.7 million in the 2022 Period, due primarily to higher per ton costs on certain expense items discussed in more detail below and increased coal sales volumes.

Net income attributable to ARLP.  Increased revenues and lower income tax expense, partially offset by higher total operating expenses, led net income attributable to ARLP for the 2023 Period to $361.0 million, or $2.75 per basic and diluted limited partner unit, compared to $201.6 million, or $1.51 per basic and diluted limited partner unit, for the 2022 Period.  

Coal - Segment Adjusted EBITDA Expense.  Segment Adjusted EBITDA Expense for our coal operations increased 16.9% to $672.9 million, as a result of higher coal sales volumes and inflationary cost pressures.  On a per ton basis, Segment Adjusted EBITDA Expense for our coal operations increased 15.1% to $38.73 per ton sold in the 2023 Period compared to $33.66 per ton in the 2022 Period, primarily due to certain cost increases, which are discussed below by category:

● Labor and benefit expenses per ton produced, excluding workers' compensation, increased 16.5% to $11.55 per ton in the 2023 Period from $9.91 per ton in the 2022 Period.  The increase of $1.64 per ton was primarily due to higher incentive benefits and direct labor costs at several mines.

● Workers' compensation expenses per ton produced increased to $0.56 per ton in the 2023 Period from $0.14 per ton in the 2022 Period.  The increase of $0.42 per ton produced primarily reflects a favorable mid-year workers' compensation accrual adjustment in the 2022 Period due to an increase in the discount rate.  

● Material and supplies expenses per ton produced increased 2.8% to $13.41 per ton in the 2023 Period from $13.04 per ton in the 2022 Period.  The increase of $0.37 per ton produced primarily reflects increases of $0.27 per ton for ventilation related expenses, $0.21 per ton for various preparation plant expenses, $0.15 per ton for safety related materials and supplies and $0.12 per ton for power and fuel, partially offset by a decrease of $0.49 per ton for roof support.

● Maintenance expenses per ton produced increased 24.3% to $4.24 per ton in the 2023 Period from $3.41 per ton in the 2022 Period.  The increase of $0.83 per ton produced was primarily as a result of inflationary cost pressures.

● Production taxes and royalty expenses per ton incurred as a percentage of coal sales prices and volumes increased $1.00 per produced ton sold in the 2023 Period compared to the 2022 Period primarily as a result of higher price realizations, increased excise taxes per ton resulting from a reduced mix of export shipments and higher federal black lung excise tax as a result of the tax rate increasing effective October 1, 2022, partially offset by a favorable mix of tons sold mined in states without severance taxes.

Other revenues.  Other revenues principally comprised Matrix Design sales, Mt. Vernon transloading revenues, oil & gas lease bonus revenues and other miscellaneous sales and revenue activities.  Other revenues increased to $37.3

29

million in the 2023 Period from $25.7 million in the 2022 Period.  The increase of $11.6 million was primarily due to increased sales of mining technology products by our Matrix Design subsidiary.

Income tax expense.  Income tax expense decreased to $8.2 million for the 2023 Period compared to $49.0 million for the 2022 Period as a result of our recognition of a one-time non-cash income tax charge of $37.3 million during the 2022 Period when Alliance Minerals elected to be treated as a taxable entity for federal and state income tax purposes.

Segment Adjusted EBITDA.  Our 2023 Period Segment Adjusted EBITDA increased $118.8 million to $561.3 million from the 2022 Period Segment Adjusted EBITDA of $442.5 million.  

	Six Months Ended
	June 30,
	2023		2022 (1)		Increase (Decrease)
	(in thousands)
Segment Adjusted EBITDA
Illinois Basin Coal Operations	$	251,559	$	175,567	$	75,992	43.3	%
Appalachia Coal Operations		226,123		175,480		50,643	28.9	%
Oil & Gas Royalties		59,095		68,473		(9,378)	(13.7)	%
Coal Royalties		21,095		19,475		1,620	8.3	%
Other, Corporate and Elimination (2)		3,441		3,525		(84)	(2.4)	%
Total Segment Adjusted EBITDA (3)	$	561,313	$	442,520	$	118,793	26.8	%
Coal - Tons sold
Illinois Basin Coal Operations		12,256		11,713		543	4.6	%
Appalachia Coal Operations		5,117		5,382		(265)	(4.9)	%
Total tons sold		17,373		17,095		278	1.6	%
Coal sales
Illinois Basin Coal Operations	$	668,723	$	544,294	$	124,429	22.9	%
Appalachia Coal Operations		470,392		375,873		94,519	25.1	%
Total coal sales	$	1,139,115	$	920,167	$	218,948	23.8	%
Other revenues
Illinois Basin Coal Operations	$	4,569	$	3,559	$	1,010	28.4	%
Appalachia Coal Operations		850		691		159	23.0	%
Oil & Gas Royalties		1,365		793		572	72.1	%
Other, Corporate and Elimination		30,510		20,650		9,860	47.7	%
Total other revenues	$	37,294	$	25,693	$	11,601	45.2	%
Segment Adjusted EBITDA Expense
Illinois Basin Coal Operations	$	421,735	$	372,286	$	49,449	13.3	%
Appalachia Coal Operations		245,118		201,084		44,034	21.9	%
Oil & Gas Royalties		7,986		6,859		1,127	16.4	%
Coal Royalties		10,985		10,217		768	7.5	%
Other, Corporate and Elimination (2)		(8,094)		(12,568)		4,474	35.6	%
Total Segment Adjusted EBITDA Expense (3)	$	677,730	$	577,878	$	99,852	17.3	%
Oil & Gas Royalties
Volume - BOE (4)		1,524		1,088		436	40.1	%
Oil & gas royalties	$	67,584	$	72,683	$	(5,099)	(7.0)	%
Coal Royalties
Volume - Tons sold (5)		10,175		10,821		(646)	(6.0)	%
Intercompany coal royalties	$	32,080	$	29,692	$	2,388	8.0	%

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(1) Recast for the JC Resources Acquisition.  For more information, please read "Item 1. Financial Statements (Unaudited)—Note 1 – Organization and Presentation" of this Quarterly Report on Form 10-Q.

(2) Other, Corporate and Elimination includes the elimination of intercompany coal royalty revenues and expenses between our Coal Royalties Segment and our Coal Operations Segments in addition to the expenses for the other miscellaneous activities included in this category.

(3) For definitions of Segment Adjusted EBITDA and Segment Adjusted EBITDA Expense and related reconciliations to their respective comparable GAAP financial measures, please see below under "—Reconciliation of GAAP 'net income' to non-GAAP 'Segment Adjusted EBITDA' and reconciliation of GAAP 'Operating Expenses' to non-GAAP 'Segment Adjusted EBITDA Expense.'"  

(4) Barrels of oil equivalent ("BOE") is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel).

(5) Represents tons sold by our Coal Operations Segments that were produced from coal reserves leased from our Coal Royalties Segment.

Illinois Basin Coal Operations – Segment Adjusted EBITDA increased to $251.6 million in the 2023 Period from $175.6 million in the 2022 Period.  The increase of $76.0 million was primarily attributable to higher coal sales, which increased 22.9% to $668.7 million in the 2023 Period from $544.3 million in the 2022 Period, partially offset by increased operating expenses. The increase in coal sales reflects higher coal sales price per ton, which increased by 17.4% compared to the 2022 Period reflecting increased domestic prices, and increased tons sold, which rose 4.6% in the 2023 Period as a result of increased sales volumes at the Warrior, Gibson South and Hamilton mines. Segment Adjusted EBITDA Expense increased 13.3% to $421.7 million in the 2023 Period from $372.3 million in the 2022 Period primarily as a result of increased sales volumes and higher expenses per ton.  Segment Adjusted EBITDA Expense per ton increased $2.63 per ton sold to $34.41 from $31.78 per ton sold in the 2022 Period primarily as a result of inflationary pressures on numerous expense items, including labor-related expenses, maintenance costs and increased sales-related expenses due to higher price realizations.

Appalachia Coal Operations – Segment Adjusted EBITDA increased 28.9% to $226.1 million for the 2023 Period from $175.5 million in the 2022 Period.  The increase of $50.6 million was primarily attributable to higher coal sales, which increased 25.1% to $470.4 million in the 2023 Period from $375.9 million in the 2022 Period, due to increased prices.  Coal sales prices increased by 31.6% compared to the 2022 Period primarily due to increased export and domestic price realizations in the region.  Partially offsetting higher prices, coal sales volumes decreased 4.9% compared to the 2022 Period as a result of reduced export sales from our Tunnel Ridge operation and lower production across the region.  Segment Adjusted EBITDA Expense increased 21.9% to $245.1 million in the 2023 Period from $201.1 million in the 2022 Period due to higher per ton expenses.  Segment Adjusted EBITDA Expense per ton increased 28.2% to $47.90 compared to $37.36 per ton sold in the 2022 Period, as a result of increased longwall move days at the Tunnel Ridge and Mettiki mines, reduced recoveries at the MC Mining operation and inflationary pressures on certain expense items, most notably labor-related expenses and materials and maintenance costs, and increased sales-related expenses due to higher price realizations.

Oil & Gas Royalties – Segment Adjusted EBITDA decreased to $59.1 million for the 2023 Period from $68.5 million in the 2022 Period.  The decrease of $9.4 million was primarily due to lower average sales price per BOE, which decreased 33.6% to $44.34 per BOE, partially offset by increased volumes in the 2023 Period, which increased by 40.1%. Higher BOE volumes during the 2023 Period resulted from increased drilling and completion activities on our properties and additional volumes from oil & gas mineral interest acquisitions.

Coal Royalties – Segment Adjusted EBITDA increased 8.3% to $21.1 million for the 2023 Period from $19.5 million in the 2022 Period.  The increase of $1.6 million was a result of higher average royalty rates per ton, partially offset by reduced royalty tons sold.

Reconciliation of GAAP "net income" to non-GAAP "Segment Adjusted EBITDA" and reconciliation of GAAP "Operating Expenses" to non-GAAP "Segment Adjusted EBITDA Expense"

Segment Adjusted EBITDA (a non-GAAP financial measure) is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses.  Segment Adjusted EBITDA is a key component of consolidated EBITDA, which is used as a supplemental financial measure by management and by external users of our financial statements such as investors, commercial banks, research analysts and others.  We believe that the presentation of EBITDA provides useful information to investors regarding our performance and results of operations because EBITDA, when used in conjunction with related GAAP

31

financial measures, (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation and planning decisions and (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations.

Segment Adjusted EBITDA is also used as a supplemental financial measure by our management for reasons similar to those stated in the previous explanation of EBITDA.  In addition, the exclusion of corporate general and administrative expenses from consolidated Segment Adjusted EBITDA allows management to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments.  

The following is a reconciliation of net income, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Net income	$	171,305	$	163,851	$	363,983	$	202,224
Noncontrolling interest		(1,515)		(323)		(3,008)		(613)
Net income attributable to ARLP	$	169,790	$	163,528	$	360,975	$	201,611
General and administrative		20,130		22,480		41,215		41,102
Depreciation, depletion and amortization		68,639		67,690		134,189		131,830
Interest expense, net		6,808		9,304		16,694		18,931
Income tax expense		3,999		6,331		8,240		49,046
Consolidated Segment Adjusted EBITDA	$	269,366	$	269,333	$	561,313	$	442,520

Segment Adjusted EBITDA Expense (a non-GAAP financial measure) includes operating expenses, coal purchases, if applicable, and other expense (income).  Transportation expenses are excluded as these expenses are passed through to our customers and, consequently, we do not realize any gain or loss on transportation revenues.  Segment Adjusted EBITDA Expense is used as a supplemental financial measure by our management to assess the operating performance of our segments.  Segment Adjusted EBITDA Expense is a key component of Segment Adjusted EBITDA in addition to coal sales, royalty revenues and other revenues.  The exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA Expense allows management to focus solely on the evaluation of segment operating performance as it primarily relates to our operating expenses.  

The following is a reconciliation of operating expenses, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA Expense:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Operating expenses (excluding depreciation, depletion and amortization)	$	334,402	$	316,850	$	673,125	$	578,873
Outside coal purchases		4,209		151		4,209		151
Other expense (income)		(177)		(579)		396		(1,146)
Segment Adjusted EBITDA Expense	$	338,434	$	316,422	$	677,730	$	577,878

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Liquidity and Capital Resources

Liquidity

We have historically satisfied our working capital requirements and funded our capital expenditures, investments, contractual obligations and debt service obligations with cash generated from operations, cash provided by the issuance of debt or equity, borrowings under credit and securitization facilities and other financing transactions. We believe that existing cash balances, future cash flows from operations and investments, borrowings under credit facilities and cash provided from the issuance of debt or equity will be sufficient to meet our working capital requirements, capital expenditures and additional investments, debt payments, contractual obligations, commitments and distribution payments. Nevertheless, our ability to satisfy our working capital requirements and additional investments, to satisfy our contractual obligations, to fund planned capital expenditures, to service our debt obligations or to pay distributions will depend upon our future operating performance and access to and cost of financing sources, which will be affected by prevailing economic conditions generally, and in both the coal and oil & gas industries specifically, as well as other financial and business factors, some of which are beyond our control. Based on our recent operating cash flow results, current cash position, anticipated future cash flows and sources of financing that we expect to have available, we anticipate being in compliance with the covenants of the Credit Agreement and expect to have sufficient liquidity to fund our operations and growth strategies. However, to the extent operating cash flow or access to and cost of financing sources are materially different than expected, future covenant compliance or liquidity may be adversely affected. Please read "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022.

Oil & Gas Acquisitions — As of June 30, 2023, we have purchased mineral interests for $1.1 million and $3.9 million for the three and six months ended June 30, 2023, respectively, with cash on hand under our $35.0 million Acquisition Agreement.  Future acquisitions under the Acquisition Agreement are expected to be funded with cash on hand or cash generated from operations.

On February 22, 2023, we closed on the JC Resources Acquisition for $72.3 million, which was funded with cash on hand.

Please read "Item 1. Financial Statements (Unaudited) – Note 2 – Acquisitions" of this Quarterly Report on Form 10-Q for additional information about the Acquisition Agreement and the JC Resources Acquisition.

Credit Facility — On January 13, 2023, Alliance Coal, as borrower, entered into a Credit Agreement (the "Credit Agreement") with various financial institutions.  The Credit Agreement provides for a $425 million revolving credit facility, which includes a sublimit of $15.0 million for swingline borrowings and permits the issuance of letters of credit of up to the full amount of $425 million (the "Revolving Credit Facility"), and for a term loan in an aggregate principal amount of $75 million (the "Term Loan").  The Credit Agreement matures on March 9, 2027, at which time the aggregate outstanding principal amount of all Revolving Credit Facility advances and all Term Loan advances are required to be repaid in full.  The Credit Agreement will instead mature on January 30, 2025, if on that date our Senior Notes are still outstanding and Alliance Coal does not have liquidity of at least $200 million.  Interest is payable quarterly, with principal of the Term Loan due in quarterly installments equal to 6.25% of the original principal amount of the Term Loan beginning with the quarter ending June 30, 2023, and the balance payable at maturity.  The Revolving Credit Facility replaces the $459.5 million revolving credit facility, which included a sublimit of $125.0 million for the issuance of letters of credit and a sublimit of $15.0 million for swingline borrowings, extended to the Intermediate Partnership under its Fifth Amended and Restated Credit Agreement, dated as of March 9, 2020 that would have expired on March 9, 2024. The Credit Agreement is guaranteed by ARLP and certain of its subsidiaries, including the Intermediate Partnership and most of the direct and indirect subsidiaries of Alliance Coal (the "Subsidiary Guarantors").  The Credit Agreement also is secured by substantially all of the assets of the Subsidiary Guarantors and Alliance Coal. For additional information on the Credit Agreement, please see "Item 1. Financial Statements (Unaudited) – Note 6 – Long-Term Debt."

Accounts Receivable Securitization — In January 2023, we extended the term of our $60.0 million accounts receivable securitization facility (the "Securitization Facility") from January 2023 to January 2024. For additional information on the Securitization Facility, please see "Item 1. Financial Statements (Unaudited) – Note 6 – Long-Term Debt."

Unit Repurchase Program — In May 2018, the Board of Directors approved the establishment of a unit repurchase program authorizing us to repurchase up to $100 million of ARLP common units. In January 2023, the Board

33

of Directors authorized a $93.5 million increase to the unit repurchase program, which had $6.5 million of available capacity as of December 31, 2022. The program has no time limit and we may repurchase units from time to time in the open market or in other privately negotiated transactions.  The unit repurchase program authorization does not obligate us to repurchase any dollar amount or number of units. During the six months ended June 30, 2023, we repurchased and retired 929,842 units at an average price of $20.90 for an aggregate purchase price of $19.4 million. The timing of any future unit repurchases and the ultimate number of units to be purchased will depend on several factors, including business and market conditions, our future financial performance, and other capital priorities.  Please read "Part II - Item 2. Unregistered Sales of Equity Securities and Use of Proceeds" of this Quarterly Report on Form 10-Q for more information on the unit repurchase program.

Repurchase of Senior Notes — During the six months ended June 30, 2023, we repurchased $60.8 million of our 7.5% senior notes due 2025. In July 2023, we redeemed an additional $50.0 million of our Senior Notes. At June 30, 2023, the aggregate principal amount of our outstanding 7.5% senior notes due 2025 was $339.2 million. We expect to continue additional purchases with available cash flows.

Shelf Registration Statement — We currently have an effective universal shelf Registration Statement on Form S-3 that provides for the registration and sale of an unspecified amount of our equity or debt securities. We may over time, and subject to market conditions, in one or more offerings, offer and sell any of the securities described in the prospectus.

Cash Flows

Cash provided by operating activities was $504.0 million for the 2023 Period compared to $239.4 million for the 2022 Period.  The increase in cash provided by operating activities was primarily due to an increase in net income adjusted for non-cash items and favorable working capital changes related primarily to trade receivables and workers' compensation accruals. These increases were partially offset by unfavorable working capital changes related primarily to accrued payroll and related benefits accruals, as well as miscellaneous other changes compared to the 2022 Period.

Net cash used in investing activities was $277.6 million for the 2023 Period compared to $163.3 million for the 2022 Period. The increase in cash used in investing activities was primarily attributable to an increase in capital expenditures, change in accounts payable and accrued liabilities and the acquisition of oil & gas reserves under the JC Resources Acquisition and the Acquisition Agreement. These increases were partially offset by decreases in contributions to equity method investments and purchases of equity securities compared to the 2022 period. Please read "Item 1. Financial Statements (Unaudited) - Note 2 – Acquisitions" of this Quarterly Report on Form 10-Q for additional information about the JC Resources Acquisition and the Acquisition Agreement.

Net cash used in financing activities was $237.5 million for the 2023 Period compared to $92.4 million for the 2022 Period. The increase in cash used in financing activities was primarily attributable to increased cash distributions paid to unitholders, the repurchase of senior notes during the 2023 Period, debt issuance costs, settlements under deferred compensation plans and the purchase of units under the unit repurchase program. These increases were partially offset by increased long-term borrowings.

Cash Requirements

Management anticipates having sufficient cash flow to meet 2023 cash requirements, including capital expenditures, scheduled payments on long-term debt, lease obligations, asset retirement obligation costs and workers' compensation and pneumoconiosis costs, with our June 30, 2023 cash and cash equivalents of $284.9 million, cash flows from operations, or borrowings under our Revolving Credit Facility and Securitization Facility, if necessary.  We currently project average estimated annual maintenance capital expenditures over the next five years of approximately $7.05 per ton produced.  Our anticipated total capital expenditures, including maintenance capital expenditures, for 2023 are estimated in a range of $390.0 million to $440.0 million.  We will continue to have significant cash requirements over the long term, which may require us to incur debt or seek additional equity capital.  The availability and cost of additional capital will depend upon prevailing market conditions, the market price of our common units and several other factors over which we have limited control, as well as our financial condition and results of operations.

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Debt Obligations

See "Item 1. Financial Statements (Unaudited)—Note 6 – Long-Term Debt" of this Quarterly Report on Form 10-Q for a discussion of our long-term debt obligations.

We also have an agreement with a bank to provide additional letters of credit in the amount of $5.0 million to maintain surety bonds to secure certain asset retirement obligations and our obligations for workers' compensation benefits.  On June 30, 2023, we had $5.0 million in letters of credit outstanding under this agreement.

Related-Party Transactions

We have related-party transactions and activities with Mr. Craft, MGP and their respective affiliates as well as other related parties. These related-party transactions and activities relate principally to (1) coal mineral leases with The Joseph W. Craft III Foundation and The Kathleen S. Craft Foundation, (2) the use of aircraft, and (3) the purchase of oil & gas mineral interests from JC Resources LP, an entity owned by Mr. Craft. Please read "Item 1. Financial Statements (Unaudited) – Note 2 – Acquisitions" of this Quarterly Report on Form 10-Q for more information on the purchase of oil & gas mineral interests. We also have related-party transactions with (a) WKY CoalPlay, LLC regarding three mineral leases, and (b) with entities in which we hold equity investments. For more information regarding our investments, please read "Item 1. Financial Statements (Unaudited)—Note 9 – Investments" of this Quarterly Report on Form 10-Q.  Please read our Annual Report on Form 10-K for the year ended December 31, 2022, "Item 8. Financial Statements and Supplementary Data—Note 22 – Related-Party Transactions" for additional information concerning related-party transactions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Commodity Price Risk

We have significant long-term coal sales contracts.  Most of the long-term sales contracts are subject to price adjustment provisions, which periodically permit an increase or decrease in the contract price, typically to reflect changes in specified indices or changes in production costs resulting from regulatory changes, or both.

Our results of operations are highly dependent upon the prices we receive for our coal, oil and natural gas.  Regarding coal, the short-term sales contracts favored by some of our coal customers leave us more exposed to risks of declining coal price periods.  Also, a significant decline in oil & gas prices would have a significant impact on our oil & gas royalty revenues.

We have exposure to coal and oil & gas sales prices and price risk for supplies that are used directly or indirectly in the normal course of coal and oil & gas production such as steel, electricity and other supplies. We manage our risk for these items through strategic sourcing contracts for normal quantities required by our operations.  Historically, we have not utilized any commodity price-hedges or other derivatives related to either our sales price or supply cost risks but may do so in the future.

Credit Risk

Most of our coal is sold to U.S. electric utilities or into the international markets through brokered transactions.  Therefore, our credit risk is primarily with domestic electric power generators and reputable global brokerage firms.  Our policy is to independently evaluate each customer's creditworthiness prior to entering into transactions and to constantly monitor outstanding accounts receivable. When deemed appropriate by our credit management department, we will take steps to reduce our credit exposure to customers that do not meet our credit standards or whose credit has deteriorated. These steps may include obtaining letters of credit or cash collateral, requiring prepayments for shipments or establishing customer trust accounts held for our benefit in the event of a failure to pay.  Such credit risks from customers may impact the borrowing capacity of our Securitization Facility.  See "Item 1. Financial Statements (Unaudited)—Note 6– Long-Term Debt" of this Quarterly Report on Form 10-Q for more information on our Securitization Facility.

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Exchange Rate Risk

Almost all our transactions are denominated in United States dollars, and as a result, we do not have material exposure to currency exchange-rate risks. However, because coal is sold internationally in United States dollars, general economic conditions in foreign markets and changes in foreign currency exchange rates may provide our foreign competitors with a competitive advantage. If our competitors' currencies decline against the United States dollar or against foreign purchasers' local currencies, those competitors may be able to offer lower prices for coal to these purchasers. Furthermore, if the currencies of overseas purchasers were to significantly decline in value in comparison to the United States dollar, those purchasers may seek decreased prices for the coal we sell to them. Consequently, currency fluctuations could adversely affect the competitiveness of our coal in international markets.

Interest Rate Risk

Borrowings under the Revolving Credit Facility and Securitization Facility are at variable rates and, as a result, we have interest rate exposure on any amounts drawn under these facilities.  Historically, our earnings have not been materially affected by changes in interest rates and we have not utilized interest rate derivative instruments related to our outstanding debt.  We did not have an outstanding balance under either the Revolving Credit Facility or the Securitization Facility at June 30, 2023.  

There were no other changes in our quantitative and qualitative disclosures about market risk as set forth in our Annual Report on Form 10-K for the year ended December 31, 2022.

ITEM 4.CONTROLS AND PROCEDURES

We maintain controls and procedures designed to provide reasonable assurance that information required to be disclosed in the reports we file with the Securities and Exchange Commission ("SEC") is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.  As required by Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), we have evaluated, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) of the Exchange Act) as of June 30, 2023.  Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that these controls and procedures are effective as of June 30, 2023.

During the quarterly period ended June 30, 2023, there have not been any changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) identified in connection with our evaluation that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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FORWARD-LOOKING STATEMENTS

Certain statements and information in this Quarterly Report on Form 10-Q, and certain oral statements made from time to time by our representatives, constitute "forward-looking statements."  These statements are based on our beliefs as well as assumptions made by, and information currently available to, us.  When used in this document, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "foresee," "may," "outlook," "plan," "project," "potential," "should," "will," "would," and similar expressions identify forward-looking statements.  Without limiting the foregoing, all statements relating to our future outlook, anticipated capital expenditures, future cash flows and borrowings, and sources of funding are forward-looking statements. These forward-looking statements are based on our current expectations and beliefs concerning future developments and reflect our current views with respect to future events and are subject to numerous assumptions that we believe are reasonable, but are open to a wide range of uncertainties and business risks, and actual results could differ materially from those discussed in these statements.  Among the factors that could cause actual results to differ from those in the forward-looking statements are:

● decline in the coal industry's share of electricity generation, including as a result of environmental concerns related to coal mining and combustion and the cost and perceived benefits of other sources of electricity and fuels, such as oil & gas, nuclear energy, and renewable fuels;

● changes in macroeconomic and market conditions and market volatility, and the impact of such changes and volatility on our financial position;

● changes in global economic and geo-political conditions or changes in industries in which our customers operate;

● changes in commodity prices, demand and availability which could affect our operating results and cash flows;

● the outcome or escalation of current hostilities in Ukraine;

● the severity, magnitude, and duration of any future pandemics and impacts of the pandemic and of businesses' and governments' responses to the pandemic on our operations and personnel, and on demand for coal, oil, and natural gas, the financial condition of our customers and suppliers, available liquidity and capital sources and broader economic disruptions;

● actions of the major oil-producing countries with respect to oil production volumes and prices could have direct and indirect impacts over the near and long term on oil & gas exploration and production operations at the properties in which we hold mineral interests;

● changes in competition in domestic and international coal markets and our ability to respond to such changes;

● potential shut-ins of production by operators of the properties in which we hold oil & gas mineral interests due to low commodity prices or the lack of downstream demand or storage capacity;

● risks associated with the expansion of our operations and properties;

● our ability to identify and complete acquisitions and to successfully integrate such acquisitions into our business and achieve the anticipated benefits therefrom;

● our ability to identify and invest in new energy and infrastructure transition ventures;

● the success of our development plans for our wholly owned subsidiary, Matrix Design Group, LLC, and our investments in emerging infrastructure and technology companies;

● dependence on significant customer contracts, including renewing existing contracts upon expiration;

● adjustments made in price, volume, or terms to existing coal supply agreements;

● the effects of and changes in trade, monetary and fiscal policies and laws;

● central bank policy actions, bank failures and associated liquidity risks;

● the effects of and changes in taxes or tariffs and other trade measures adopted by the United States and foreign governments;

● legislation, regulations, and court decisions and interpretations thereof, both domestic and foreign, including those relating to the environment and the release of greenhouse gases, mining, miner health and safety, hydraulic fracturing, and health care;

● deregulation of the electric utility industry or the effects of any adverse change in the coal industry, electric utility industry, or general economic conditions;

● investors' and other stakeholders' increasing attention to environmental, social, and governance ("ESG") matters;

● liquidity constraints, including those resulting from any future unavailability of financing;

● customer bankruptcies, cancellations or breaches to existing contracts, or other failures to perform;

● customer delays, failure to take coal under contracts or defaults in making payments;

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● our productivity levels and margins earned on our coal sales;

● disruptions to oil & gas exploration and production operations at the properties in which we hold mineral interests;

● changes in equipment, raw material, service or labor costs or availability, including due to inflationary pressures;

● changes in our ability to recruit, hire and maintain labor;

● our ability to maintain satisfactory relations with our employees;

● increases in labor costs including costs of health insurance and taxes resulting from the Affordable Care Act, adverse changes in work rules, or cash payments or projections associated with workers' compensation claims;

● increases in transportation costs and risk of transportation delays or interruptions;

● operational interruptions due to geologic, permitting, labor, weather, supply chain shortage of equipment or mine supplies, or other factors;

● risks associated with major mine-related accidents, mine fires, mine floods, or other interruptions;

● results of litigation, including claims not yet asserted;

● foreign currency fluctuations that could adversely affect the competitiveness of our coal abroad;

● difficulty maintaining our surety bonds for mine reclamation as well as workers' compensation and black lung benefits;

● difficulty in making accurate assumptions and projections regarding post-mine reclamation as well as pension, black lung benefits, and other post-retirement benefit liabilities;

● uncertainties in estimating and replacing our coal mineral reserves and resources;

● uncertainties in estimating and replacing our oil & gas reserves;

● uncertainties in the amount of oil & gas production due to the level of drilling and completion activity by the operators of our oil & gas properties;

● uncertainties in the future of the electric vehicle industry and the market for EV charging stations;

● the impact of current and potential changes to federal or state tax rules and regulations, including a loss or reduction of benefits from certain tax deductions and credits;

● difficulty obtaining commercial property insurance, and risks associated with our participation in the commercial insurance property program;

● evolving cybersecurity risks, such as those involving unauthorized access, denial-of-service attacks, malicious software, data privacy breaches by employees, insiders or others with authorized access, cyber or phishing-attacks, ransomware, malware, social engineering, physical breaches, or other actions;

● difficulty in making accurate assumptions and projections regarding future revenues and costs associated with equity investments in companies we do not control; and

● other factors, including those discussed in "Item 1A. Risk Factors" and "Item 3. Legal Proceedings" in our Annual Report on Form 10-K for the year ended December 31, 2022.

If one or more of these or other risks or uncertainties materialize, or should our underlying assumptions prove incorrect, our actual results could differ materially from those described in any forward-looking statement.  When considering forward-looking statements, you should also keep in mind our risk factors and legal proceedings.  Known material factors that could cause our actual results to differ from those in the forward-looking statements are described in "Item 1. Legal Proceedings" and "Item 1A. Risk Factors" below.  We disclaim any obligation to update or revise any forward-looking statements or to announce publicly the result of any revisions to any of the forward-looking statements to reflect future events or developments unless required by law.

You should consider the information above when reading or considering any forward-looking statements contained in:

● this Quarterly Report on Form 10-Q;

● other reports filed by us with the SEC;

● our press releases;

● our website www.arlp.com; and

● written or oral statements made by us or any of our officers or other authorized persons acting on our behalf.

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PART II

OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

Litigation was initiated in November 2019 in the U.S. District Court for the Western District of Kentucky (Branson v. Webster County Coal, LLC et al.) against certain of our subsidiaries in which the plaintiffs allege violations of the Fair Labor Standards Act and state law due to alleged failure to compensate for time "donning" and "doffing" equipment and to account for certain bonuses in the calculation of overtime rates and pay.  A similar lawsuit was initiated in March 2020 in the U.S. District Court for the Eastern District of Kentucky (Brewer v. Alliance Coal, LLC, et al.).  Subsequently, four additional lawsuits making similar allegations were initiated against certain of our subsidiaries: filed March 4, 2021 in the Circuit Court for Hopkins County, Kentucky (Johnson v. Hopkins County Coal, LLC, et al.); filed April 6, 2021 in the U.S. District Court for the Northern District of West Virginia (Rettig v. Mettiki Coal WV, LLC, et al.); filed April 9, 2021 in the U.S. District Court for the Southern District of Illinois (Cates v. Hamilton County Coal, LLC, et al.); and filed April 13, 2021 in the U.S. District Court for the Southern District of Indiana (Prater v. Gibson County Coal, LLC, et al.).  The plaintiffs in these cases seek class and collective action certification, which we oppose, and the courts have not yet made definitive final rulings on these issues.  The plaintiffs seek to recover alleged compensatory, liquidated and/or exemplary damages for the alleged underpayment, and costs and fees that potentially may be recoverable under applicable law. We had a mediation with the plaintiffs on June 12, 2023, but no settlement was reached. We believe our ultimate exposure, if any, will not be material to our results of operations or financial position; however, if our current belief that the claims are without merit is not upheld, it is reasonably possible that the ultimate resolution of these matters could result in a potential loss that may be material to our results of operations.

ITEM 1A.RISK FACTORS

In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors discussed in Part I - Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022 and in Part II - Item 1A. "Risk Factors" in our Form 10-Q for the quarterly period ended March 31, 2023, which could materially affect our business, financial condition or future results. The risks described in these reports are not our only risks. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial based on current knowledge and factual circumstances, if such knowledge or facts change, also may materially adversely affect our business, financial condition and/or operating results in the future.  

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On May 31, 2018, ARLP announced that the Board of Directors approved the establishment of a unit repurchase program authorizing ARLP to repurchase up to $100 million of its outstanding limited partner common units.  In January 2023, the Board of Directors authorized a $93.5 million increase to the unit purchase program, which had $6.5 million of available capacity as of December 31, 2022. The unit repurchase program is intended to enhance ARLP's ability to achieve its goal of creating long-term value for its unitholders and provides another means, along with quarterly cash distributions, of returning cash to unitholders. The program has no time limit and ARLP may repurchase units from time to time in the open market or in other privately negotiated transactions. The unit repurchase program authorization does not obligate ARLP to repurchase any dollar amount or number of units and repurchases may be commenced or suspended from time to time without prior notice.

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The table below represents all unit repurchases for the three months ended June 30, 2023.

Period	Total Number of Units Purchased		Average Price Paid per Unit	Total Number of Units Purchased as Part of Publicly Announced Program		Maximum Dollar Value that May Yet Be Used to Repurchase Units Under the Publicly Announced Program
						(in thousands)
June 1 through June 30, 2023	69,782	$	17.52	69,782	$	80,568
Total	69,782	$	17.52	69,782	$	80,568

As of June 30, 2023, we had repurchased 6,390,446 units as part of the unit repurchase program at an average unit price of $17.67, for an aggregate purchase price of $112.9 million since inception of the unit purchase program. The remaining authorized amount for unit purchase under this program was $80.6 million.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.MINE SAFETY DISCLOSURES

Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95.1 to this Quarterly Report on Form 10-Q.

ITEM 5.OTHER INFORMATION

During the three months ended June 30, 2023, no director or officer adopted or terminated (i) any contract, instructions or written plan for the purchase or sale of securities of the Partnership intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) and/or (ii) any written arrangement for the purchase or sale of securities of the Partnership that meets the definition of a non-Rule 10b5-1 trading arrangement as defined in Item 408(c).

ITEM 6.EXHIBITS

		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	SEC File No. and Film No.	Exhibit	Filing Date	Filed Herewith*
3.1	Fourth Amended and Restated Agreement of Limited Partnership of Alliance Resource Partners, L.P.	8-K	000-26823 17990766	3.2	07/28/2017
3.2	Amendment No. 1 to Fourth Amended and Restated Agreement of Limited Partnership of Alliance Resource Partners, L.P.	10-K	000-26823 18634634	3.9	02/23/2018
3.3	Amendment No. 2 to Fourth Amended and Restated Agreement of Limited Partnership of Alliance Resource Partners, L.P.	8-K	000-26823 18883834	3.3	06/06/2018

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		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	SEC File No. and Film No.	Exhibit	Filing Date	Filed Herewith*
3.4	Amendment No. 3 to Fourth Amended and Restated Agreement of Limited Partnership of Alliance Resource Partners, L.P.	8-K	000-26823 18883834	3.4	06/06/2018
3.5	Amended and Restated Agreement of Limited Partnership of Alliance Resource Operating Partners, L.P.	10-K	000-26823 583595	3.2	03/29/2000
3.6	Amendment No. 1 to Amended and Restated Agreement of Limited Partnership of Alliance Resource Operating Partners, L.P.	8-K	000-26823 18883834	3.5	06/06/2018
3.7	Amended and Restated Certificate of Limited Partnership of Alliance Resource Partners, L.P.	8-K	000-26823 17990766	3.6	07/28/2017
3.8	Certificate of Limited Partnership of Alliance Resource Operating Partners, L.P.	S-1/A	333-78845 99669102	3.8	07/23/1999
3.9	Certificate of Formation of Alliance Resource Management GP, LLC	S-1/A	333-78845 99669102	3.7	07/23/1999
3.10	Third Amended and Restated Operating Agreement of Alliance Resource Management GP, LLC	8-K	000-26823 18883834	3.7	06/06/2018
3.11	Certificate of Formation of MGP II, LLC	8-K	000-26823 17990766	3.5	07/28/2017
3.12	Amended and Restated Operating Agreement of MGP II, LLC	8-K	000-26823 17990766	3.4	07/28/2017
10.1	Eleventh Amendment to the Receivables Financing Agreement, dated as of January 13, 2023.	10-K	000-26823 23666549	10.54	02/24/2023
10.2	Credit Agreement, dated as of January 13, 2023, among Alliance Coal, LLC, as borrower, Alliance Resource Operating Partners, L.P., Alliance Resource Partners, L.P., UC Coal, LLC, UC Mining, LLC, UC Processing, LLC and MGP II, LLC as additional Alliance entities and the initial lenders, initial issuing banks and swingline bank named therein, PNC Bank, National Association as administrative agent and collateral agent and PNC Capital Markets LLC, BOKF, NA DBA Bank of Oklahoma, Fifth Third Bank, National Association, Old National Bank and Trust Securities, Inc. as joint lead arrangers and joint bookrunners and the other institutions named therein as documentation agents.	8-K	000-26823 23540292	10.1	01/20/2023

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		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	SEC File No. and Film No.	Exhibit	Filing Date	Filed Herewith*
31.1	Certification of Joseph W. Craft III, President and Chief Executive Officer of Alliance Resource Management GP, LLC, the general partner of Alliance Resource Partners, L.P., dated August 8, 2023, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Cary P. Marshall, Senior Vice President and Chief Financial Officer of Alliance Resource Management GP, LLC, the general partner of Alliance Resource Partners, L.P., dated August 8, 2023, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Joseph W. Craft III, President and Chief Executive Officer of Alliance Resource Management GP, LLC, the general partner of Alliance Resource Partners, L.P., dated August 8, 2023, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Cary P. Marshall, Senior Vice President and Chief Financial Officer of Alliance Resource Management GP, LLC, the general partner of Alliance Resource Partners, L.P., dated August 8, 2023, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
95.1	Federal Mine Safety and Health Act Information
101	Interactive Data File (Form 10-Q for the quarter ended June 30, 2023 filed in Inline XBRL).
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*    Or furnished, in the case of Exhibits 32.1 and 32.2.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized, in Tulsa, Oklahoma, on August 8, 2023.

ALLIANCE RESOURCE PARTNERS, L.P.
By:	Alliance Resource Management GP, LLC
	its general partner
	/s/ Joseph W. Craft, III
	Joseph W. Craft, III
	Chairman, President and Chief Executive
	Officer, duly authorized to sign on behalf of the registrant.
	/s/ Megan J. Cordle
	Megan J. Cordle
	Vice President, Controller and
	Chief Accounting Officer

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Joseph W. Craft III certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Alliance Resource Partners, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusion about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the quarterly period ended June 30, 2023 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2023

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/s/ Joseph W. Craft III

Joseph W. Craft III

President, Chief Executive

Officer and Chairman

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Cary P. Marshall, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Alliance Resource Partners, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusion about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the quarterly period ended June 30, 2023 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2023

Ay 9, 2017

/s/ Cary P. Marshall

Cary P. Marshall

Senior Vice President and

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Alliance Resource Partners, L.P. (the “Partnership”) on Form 10-Q for the three months ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Joseph W. Craft III, President, Chief Executive Officer and Chairman of Alliance Resource Management GP, LLC, the general partner of the Partnership, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Partnership.

ay
	By:	/s/ Joseph W. Craft III
	Joseph W. Craft III
	President, Chief Executive Officer and Chairman
	of Alliance Resource Management GP, LLC
	(the general partner of Alliance Resource Partners, L.P.)

Date: August 8, 2023

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate document.  A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Alliance Resource Partners, L.P. (the “Partnership”) on Form 10-Q for the three months ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Cary P. Marshall, Senior Vice President and Chief Financial Officer of Alliance Resource Management GP, LLC, the general partner of the Partnership, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Partnership.

By:	/s/ Cary P. Marshall
Cary P. Marshall
Senior Vice President and
Chief Financial Officer
of Alliance Resource Management GP, LLC
(the general partner of Alliance Resource Partners, L.P.)

Date: August 8, 2023

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate document.  A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

EX-95.1

EXHIBIT 95.1

Federal Mine Safety and Health Act Information

Our mining operations are subject to extensive and stringent compliance standards established pursuant to the Federal Mine Safety and Health Act of 1977, as amended by the Federal Mine Improvement and New Emergency Response Act of 2006 (as amended, the "Mine Act").  MSHA monitors and rigorously enforces compliance with these standards, and our mining operations are inspected frequently.  Citations and orders are issued by MSHA under Section 104 of the Mine Act for violations of the Mine Act or any mandatory health or safety standard, rule, order or regulation promulgated under the Mine Act.  A Section 104(a) "Significant and Substantial" or "S&S" citation is generally issued in a situation where the conditions created by the violation do not cause imminent danger, but in the opinion of the MSHA inspector could significantly and substantially contribute to the cause and effect of a mine safety or health hazard.  During the three months ended June 30, 2023, our mines were subject to 1,340 MSHA inspection days with an average of only 0.08 S&S citations written per inspection day.

The Mine Act has been construed as authorizing MSHA to issue citations and orders pursuant to the legal doctrine of strict liability, or liability without regard to fault.  If, in the opinion of an MSHA inspector, a condition exists that violates the Mine Act or regulations promulgated thereunder, then a citation or order will be issued regardless of whether we had any knowledge of, or fault in, the existence of that condition.  Many of the Mine Act standards include one or more subjective elements, so that issuance of a citation often depends on the opinions or experience of the MSHA inspector involved and the frequency of citations will vary from inspector to inspector.

If we disagree with the assertions of an MSHA inspector, we may exercise our right to challenge those findings by "contesting" the citation or order pursuant to the procedures established by the Mine Act and its regulations.  During the three months ended June 30, 2023, our operating subsidiaries contested approximately 11.3% of all citations and 44.6% of S&S citations issued by MSHA inspectors.  These contest proceedings frequently result in the dismissal or modification of previously issued citations, substantial reductions in the penalty amounts originally assessed by MSHA, or both.

The Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act") requires issuers to include in periodic reports filed with the SEC certain information relating to citations or orders for violations of standards under the Mine Act.  The following tables include information required by the Dodd-Frank Act for the three months ended June 30, 2023.  The mine data retrieval system maintained by MSHA may show information that is different than what is provided herein.  Any such difference may be attributed to the need to update that information on MSHA’s system and/or other factors.

						Total Dollar Value of
	Section 104(a)	Section	Section 104(d)	Section	Section	MSHA Assessments
Subsidiary Name / MSHA	S&S	104(b)	Citations and	110(b)(2)	107(a)	Proposed
Identification Number (1)	Citations(2)	Orders (3)	Orders (4)	Violations (5)	Orders (6)	(in thousands) (7)
Illinois Basin Operations
Webster County Coal, LLC (KY)
1502132	-	-	-	-	-	$	-
1511935	-	-	-	-	-	$	-
Warrior Coal, LLC (KY)
1505230	-	-	-	-	-	$	-
1512083	-	-	-	-	-	$	-
1513514	-	-	-	-	-	$	-
1516460	-	-	-	-	-	$	-
1517216	32	-	-	-	-	$	100.3
1517232	-	-	-	-	-	$	-
1517678	-	-	-	-	-	$	-
1517740	-	-	-	-	-	$	-
1517758	-	-	-	-	-	$	-
1514335	-	-	-	-	-	$	0.4
Hopkins County Coal, LLC (KY)
1502013	-	-	-	-	-	$	-
1517377	-	-	-	-	-	$	-
1517515	-	-	-	-	-	$	-
1518826	-	-	-	-	-	$	-
1517378	-	-	-	-	-	$	-
River View Coal, LLC (KY)
1503178	-	-	-	-	-	$	1.9
1519374	42	-	-	-	-	$	131.7
1502709	-	-	-	-	-		0.3
White County Coal, LLC (IL)
1102662	-	-	-	-	-	$	-
1103058	-	-	-	-	-	$	-
Hamilton County Coal, LLC (IL)
1103242	2	-	-	-	-	$	1.6
1103203	6	-	-	-	-	$	16.7
Gibson County Coal, LLC (IN)
1202388	6	-	-	-	-	$	15.4
1202215	-	-	-	-	-	$	-
1202494	-	-	-	-	-	$	-
Sebree Mining, LLC (KY)
1519264	-	-	-	-	-	$	-
1518547	-	-	-	-	-	$	-
1517044	-	-	-	-	-	$	-
Appalachia Operations
MC Mining, LLC (KY)
1508079	-	-	-	-	-	$	-
1517733	1	-	-	-	-	$	0.7
1519515	-	-	-	-	-	$	-
1519838	4	-	-	-	-	$	10.8
Mettiki Coal, LLC (MD)
1800621	-	-	-	-	-	$	-
1800671	-	-	-	-	-	$	-
1800761	-	-	-	-	-	$	-
Mettiki Coal (WV), LLC
4609028	3	-	1	-	-	$	29.0
Tunnel Ridge, LLC (PA/WV)
4608864	4	-	-	-	-	$	16.3
Other	-	-	-
4403236	-	-	-	-	-	$	-
4403255	-	-	-	-	-	$	-
4406630	-	-	-	-	-	$	-
4406867	-	-	-	-	-	$	-
Mid-America Carbonates, LLC (IL)	-	-	-	-	-	$	-
1103176	-	-	-	-	-	$	0.4
Rough Creek Mining, LLC	-	-	-	-	-	$	-
1502129	-	-	-	-	-	$	-

	Total	Received Notice	Legal	Legal	Legal
	Number of	of Pattern of	Actions	Actions	Actions
	Mining	Violations Under	Pending as of	Initiated	Resolved
Subsidiary Name / MSHA	Related	Section 104(e)	Last Day of	During	During
Identification Number (1)	Fatalities	(yes/no) (8)	Period (9)(10)(11)	Period	Period
Illinois Basin Operations
Webster County Coal, LLC (KY)
1502132	-	No	-	-	-
1511935	-	No	-	-	-
Warrior Coal, LLC (KY)
1505230	-	No	-	-	-
1512083	-	No	-	-	-
1513514	-	No	-	-	-
1516460	-	No	-	-	-
1517216	-	No	6	3	1
1517232	-	No	-	-	-
1517678	-	No	-	-	-
1517740	-	No	-	-	-
1517758	-	No	-	-	-
1514335	-	No	-	-	-
Hopkins County Coal, LLC (KY)
1502013	-	No	-	-	-
1517377	-	No	-	-	-
1517515	-	No	-	-	-
1518826	-	No	-	-	-
1517378	-	No	-	-	-
River View Coal, LLC (KY)
1503178	-	No	-	-	-
1519374	-	No	2	2	7
1502709	-	No	-	-	-
White County Coal, LLC (IL)
1102662	-	No	-	-	-
1103058	-	No	-	-	-
Hamilton County Coal, LLC (IL)
1103242	-	No	-	-	-
1103203	-	No	4	4	2
Gibson County Coal, LLC (IN)
1202388	-	No	3	2	-
1202215	-	No	-	-	-
1202494	-	No	-	-	-
Sebree Mining, LLC (KY)
1519264	-	No	-	-	-
1518547	-	No	-	-	-
1517044	-	No	-	-	-
Appalachia Operations
MC Mining, LLC (KY)
1508079	-	No	-	-	-
1517733	-	No	-	-	-
1519515	-	No	-	-	-
1519838	-	No	-	-	-
Mettiki Coal, LLC (MD)
1800621	-	No	-	-	-
1800671	-	No	-	-	-
1800761	-	No	-	-	-
Mettiki Coal (WV), LLC
4609028	-	No	-	-	-
Tunnel Ridge, LLC (PA/WV)
4608864	-	No	-	-	1
Other
4403236	-	No	-	-	-
4403255	-	No	-	-	-
4406630	-	No	-	-	-
4406867	-	No	-	-	-
Mid-America Carbonates, LLC (IL)
1103176	-	No	-	-	-
Rough Creek Mining, LLC
1502129	-	No	-	-	-

The number of legal actions pending before the Federal Mine Safety and Health Review Commission as of June 30, 2023 that fall into each of the following categories is as follows:

				Complaints of	Applications
	Contests of	Contests of	Complaints	Discharge/	for	Appeals of
Subsidiary Name / MSHA	Citations	Proposed	for	Discrimination	Temporary	Judges
Identification Number (1)	and Orders	Penalties (12)	Compensation	/Interference	Relief	Rulings
Illinois Basin Operations
Webster County Coal, LLC (KY)
1502132	-	-	-	-	-	-
1511935	-	-	-	-	-	-
Warrior Coal, LLC (KY)
1505230	-	-	-	-	-	-
1512083	-	-	-	-	-	-
1513514	-	-	-	-	-	-
1516460	-	-	-	-	-	-
1517216	-	6	-	-	-	-
1517232	-	-	-	-	-	-
1517678	-	-	-	-	-	-
1517740	-	-	-	-	-	-
1517758	-	-	-	-	-	-
1514335	-	-	-	-	-	-
Hopkins County Coal, LLC (KY)
1502013	-	-	-	-	-	-
1517377	-	-	-	-	-	-
1517515	-	-	-	-	-	-
1518826	-	-	-	-	-	-
1517378	-	-	-	-	-	-
River View Coal, LLC (KY)
1503178	-	-	-	-	-	-
1519374	-	2	-	-	-	-
1502709	-	-	-	-	-	-
White County Coal, LLC (IL)
1102662	-	-	-	-	-	-
1103058	-	-	-	-	-	-
Hamilton County Coal, LLC (IL)
1103242	-	-	-	-	-	-
1103203	-	4	-	-	-	-
Gibson County Coal, LLC (IN)
1202388	-	3	-	-	-	-
1202215	-	-	-	-	-	-
1202494	-	-	-	-	-	-
Sebree Mining, LLC (KY)
1519264	-	-	-	-	-	-
1518547	-	-	-	-	-	-
1517044	-	-	-	-	-	-
Appalachia Operations
MC Mining, LLC (KY)
1508079	-	-	-	-	-	-
1517733	-	-	-	-	-	-
1519515	-	-	-	-	-	-
1519838	-	-	-	-	-	-
Mettiki Coal, LLC (MD)
1800621	-	-	-	-	-	-
1800671	-	-	-	-	-	-
1800761	-	-	-	-	-	-
Mettiki Coal (WV), LLC
4609028	-	-	-	-	-	-
Tunnel Ridge, LLC (PA/WV)
4608864	-	-	-	-	-	-
Other
4403236	-	-	-	-	-	-
4403255	-	-	-	-	-	-
4406630	-	-	-	-	-	-
4406867	-	-	-	-	-	-
Mid-America Carbonates, LLC (IL)
1103176	-	-	-	-	-	-
Rough Creek Mining, LLC
1502129	-	-	-	-	-	-

(1) The statistics reported for each of our subsidiaries listed above are segregated into specific MSHA identification numbers.  

(2) Mine Act section 104(a) S&S citations shown above are for alleged violations of mandatory health or safety standards that could significantly and substantially contribute to a coal mine health and safety hazard.  It should be noted that, for purposes of this table, S&S citations that are included in another column, such as Section 104(d) citations, are not also included as Section 104(a) S&S citations in this column.  

(3) Mine Act section 104(b) orders are for alleged failures to totally abate a citation within the time period specified in the citation.

(4) Mine Act section 104(d) citations and orders are for an alleged unwarrantable failure (i.e., aggravated conduct constituting more than ordinary negligence) to comply with mandatory health or safety standards.

(5) Mine Act section 110(b)(2) violations are for an alleged "flagrant" failure (i.e., reckless or repeated) to make reasonable efforts to eliminate a known violation of a mandatory safety or health standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury.

(6) Mine Act section 107(a) orders are for alleged conditions or practices which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated and result in orders of immediate withdrawal from the area of the mine affected by the condition.

(7) Amounts shown include assessments proposed by MSHA during the three months ended June 30, 2023 on all citations and orders, including those citations and orders that are not required to be included within the above chart.

(8) Mine Act section 104(e) written notices are for an alleged pattern of violations of mandatory health or safety standards that could significantly and substantially contribute to a coal mine safety or health hazard.

(9) On December 27, 2022, MSHA filed a petition for the assessment of civil penalty in Docket LAKE 2023-0037 against Hamilton County Coal, LLC (“Hamilton”) containing one citation with a penalty of $1,069.  However, Hamilton did not receive service of this docket via e-mail, nor did they have any record of receiving it via certified mail.  Therefore, Hamilton did not file an answer to the petition and was subject to a default judgment on March 29, 2023.  Hamilton became aware of the existence of LAKE 2023-0037 in May of 2023, at which time it filed a motion to reopen the docket with the Federal Mine Safety and Health Review Commission (“FMSHRC”) on May 26, 2023.  That motion is still pending as of June 30, 2023.

(10) On April 26, 2023, a Federal Administrative Law Judge (“ALJ”) issued an Order of Reallocation for MSHA Docket KENT 2023-0034, which was initiated on March 7, 2023.  In the Order for Reallocation, the ALJ divided the 34 citations contested in the KENT 2023-0034 docket between two dockets, leaving seventeen in KENT 2023-0034, and moving seventeen into a new docket captioned as KENT 2023-0077.  Both actions were resolved as of June 30, 2023.

(11) On April 26, 2023, a Federal Administrative Law Judge (“ALJ”) issued an Order of Reallocation for MSHA Docket KENT 2023-0049, which was initiated on March 30, 2023.  In the Order for Reallocation, the ALJ divided the 30 citations contested in the KENT 2023-0049 docket between two dockets, leaving fifteen in KENT 2023-0049, and moving fifteen into a new docket captioned as KENT 2023-0085.  Both actions were resolved as of June 30, 2023.

(12) Pursuant to the Procedural Rules of the Federal Mine Safety and Health Review Commission, mine operators may contest the underlying validity and fact of an alleged citation or order, as well as any special findings of an alleged citation or order, including a significant and substantial or unwarrantable failure designation, as part of any proceeding contesting a proposed penalty assessment.    

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Aug. 08, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Entity File Number	0-26823
Entity Registrant Name	ALLIANCE RESOURCE PARTNERS LP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	73-1564280
Entity Address, Address Line One	1717 South Boulder Avenue, Suite 400
Entity Address, City or Town	Tulsa
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	74119
City Area Code	918
Local Phone Number	295-7600
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common units
Trading Symbol	ARLP
Security Exchange Name	NASDAQ
Entity Common Units Outstanding		127,125,437
Entity Central Index Key	0001086600
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 284,899	$ 296,023
Trade receivables	213,754	241,412
Other receivables	11,672	8,601
Inventories, net	128,940	77,326
Advance royalties	5,824	7,556
Prepaid expenses and other assets	18,842	26,675
Total current assets	663,931	657,593
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost	4,040,872	3,931,422
Less accumulated depreciation, depletion and amortization	(2,112,693)	(2,050,754)
Total property, plant and equipment, net	1,928,179	1,880,668
OTHER ASSETS:
Advance royalties	74,476	67,713
Equity method investments	46,789	49,371
Equity securities	42,000	42,000
Operating lease right-of-use assets	17,621	14,950
Other long-term assets	14,947	15,726
Total other assets	195,833	189,760
TOTAL ASSETS	2,787,943	2,728,021
CURRENT LIABILITIES:
Accounts payable	109,093	95,122
Accrued taxes other than income taxes	22,852	22,967
Accrued payroll and related expenses	35,220	39,623
Accrued interest	4,312	5,000
Workers' compensation and pneumoconiosis benefits	14,135	14,099
Other current liabilities	24,377	53,790
Current maturities, long-term debt, net	37,771	24,970
Total current liabilities	247,760	255,571
LONG-TERM LIABILITIES:
Long-term debt, excluding current maturities, net	379,427	397,203
Pneumoconiosis benefits	101,578	100,089
Accrued pension benefit	12,028	12,553
Workers' compensation	41,170	39,551
Asset retirement obligations	143,550	142,254
Long-term operating lease obligations	14,645	12,132
Deferred income tax liabilities	35,416	35,814
Other liabilities	25,612	24,828
Total long-term liabilities	753,426	764,424
Total liabilities	1,001,186	1,019,995
COMMITMENTS AND CONTINGENCIES - (NOTE 3)
ARLP Partners' Capital:
Limited Partners - Common Unitholders 127,125,437 and 127,195,219 units outstanding, respectively	1,801,682	1,656,025
General Partner's interest		66,548
Accumulated other comprehensive loss	(39,926)	(41,054)
Total ARLP Partners' Capital	1,761,756	1,681,519
Noncontrolling interest	25,001	26,507
Total Partners' Capital	1,786,757	1,708,026
TOTAL LIABILITIES AND PARTNERS' CAPITAL	$ 2,787,943	$ 2,728,021

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Jun. 30, 2023	Dec. 31, 2022
CONDENSED CONSOLIDATED BALANCE SHEETS
Common units outstanding	127,125,437	127,195,219

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
SALES AND OPERATING REVENUES:
Revenues	$ 641,836	$ 619,878	$ 1,304,758	$ 1,083,300
EXPENSES:
Outside coal purchases	4,209	151	4,209	151
General and administrative	20,130	22,480	41,215	41,102
Depreciation, depletion and amortization	68,639	67,690	134,189	131,830
Total operating expenses	457,907	442,556	913,503	816,713
INCOME FROM OPERATIONS	183,929	177,322	391,255	266,587
Interest expense (net of interest capitalized for the three and six months ended June 30, 2023 and 2022 of $0, $171, $1,407 and $241, respectively)	(9,433)	(9,397)	(22,109)	(19,059)
Interest income	2,625	93	5,415	128
Equity method investment income (loss)	(1,994)	1,585	(1,942)	2,468
Other income (expense)	177	579	(396)	1,146
INCOME BEFORE INCOME TAXES	175,304	170,182	372,223	251,270
INCOME TAX EXPENSE	3,999	6,331	8,240	49,046
NET INCOME	171,305	163,851	363,983	202,224
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	(1,515)	(323)	(3,008)	(613)
NET INCOME ATTRIBUTABLE TO ARLP	169,790	163,528	360,975	201,611
NET INCOME ATTRIBUTABLE TO ARLP
GENERAL PARTNER		2,050	1,384	3,481
LIMITED PARTNERS	$ 169,790	$ 161,478	$ 359,591	$ 198,130
EARNINGS PER LIMITED PARTNER UNIT - BASIC (in dollars per unit)	$ 1.30	$ 1.23	$ 2.75	$ 1.51
EARNINGS PER LIMITED PARTNER UNIT - DILUTED (in dollars per unit)	$ 1.30	$ 1.23	$ 2.75	$ 1.51
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING - BASIC (in units)	127,183,439	127,195,219	127,236,097	127,195,219
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING - DILUTED (in units)	127,183,000	127,195,000	127,236,000	127,195,000
Product
EXPENSES:
Operating expenses (excluding depreciation, depletion and amortization)	$ 334,402	$ 316,850	$ 673,125	$ 578,873
Coal sales
SALES AND OPERATING REVENUES:
Revenues	560,331	531,807	1,139,115	920,167
Oil & gas royalties
SALES AND OPERATING REVENUES:
Revenues	33,087	39,287	67,584	72,683
Transportation
SALES AND OPERATING REVENUES:
Revenues	30,527	35,385	60,765	64,757
EXPENSES:
Operating expenses (excluding depreciation, depletion and amortization)	30,527	35,385	60,765	64,757
Other revenues
SALES AND OPERATING REVENUES:
Revenues	$ 17,891	$ 13,399	$ 37,294	$ 25,693

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Interest expense, interest capitalized	$ 1,216	$ 171	$ 2,623	$ 241

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
NET INCOME	$ 171,305	$ 163,851	$ 363,983	$ 202,224
OTHER COMPREHENSIVE INCOME:
OTHER COMPREHENSIVE INCOME	563	794	1,128	1,584
COMPREHENSIVE INCOME	171,868	164,645	365,111	203,808
Less: Comprehensive income attributable to noncontrolling interest	(1,515)	(323)	(3,008)	(613)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ARLP	170,353	164,322	362,103	203,195
Defined benefit pension plan
OTHER COMPREHENSIVE INCOME:
Amortization of prior service cost (1)	46	46	93	93
Amortization of net actuarial loss (1)	171	489	344	972
Total recognized in accumulated other comprehensive loss	217	535	437	1,065
Pneumoconiosis benefits
OTHER COMPREHENSIVE INCOME:
Amortization of net actuarial loss (1)	346	259	691	519
Total recognized in accumulated other comprehensive loss	$ 346	$ 259	$ 691	$ 519

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
CASH FLOWS FROM OPERATING ACTIVITIES	$ 504,023	$ 239,391
Property, plant and equipment:
Capital expenditures	(185,017)	(121,982)
Change in accounts payable and accrued liabilities	(25,630)	8,951
Proceeds from sale of property, plant and equipment	2,468	3,373
Contributions to equity method investments	(1,334)	(20,110)
Purchase of equity securities		(32,639)
JC Resources acquisition	(64,999)
Oil & gas reserve acquisition	(3,935)
Other	833	(935)
Net cash used in investing activities	(277,614)	(163,342)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under securitization facility		27,500
Payments under securitization facility		(27,500)
Payments on equipment financings	(7,565)	(8,696)
Borrowing under long-term debt	75,000
Payments on long-term debt	(65,474)
Payments on finance lease obligations	(306)	(410)
Payment of debt issuance costs	(11,744)
Payments for purchases of units under unit repurchase program	(19,432)
Payments for tax withholdings related to settlements under deferred compensation plans	(10,334)
Excess purchase price over the contributed basis from JC Resources acquisition	(7,251)
Cash retained by JC Resources in acquisition	(2,933)	(4,074)
Distributions paid to Partners	(182,868)	(78,560)	$ (196,347)
Other	(4,626)	(623)
Net cash used in financing activities	(237,533)	(92,363)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(11,124)	(16,314)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	296,023	122,403	122,403
CASH AND CASH EQUIVALENTS AT END OF PERIOD	284,899	106,089	$ 296,023
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	20,242	17,506
Cash paid for income taxes	5,760	10,964
SUPPLEMENTAL NON-CASH ACTIVITY:
Accounts payable for purchase of property, plant and equipment	18,651	17,276
Right-of-use assets acquired by operating lease	2,280	$ 99
Market value of common units issued under deferred compensation plans before tax withholding requirements	$ 28,906

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ORGANIZATION AND PRESENTATION

6 Months Ended

Jun. 30, 2023

ORGANIZATION AND PRESENTATION

ORGANIZATION AND PRESENTATION

1.ORGANIZATION AND PRESENTATION

Significant Relationships Referenced in Notes to Condensed Consolidated Financial Statements

● References to "we," "us," "our" or "ARLP Partnership" mean the business and operations of Alliance Resource Partners, L.P., the parent company, as well as its consolidated subsidiaries.

● References to "ARLP" mean Alliance Resource Partners, L.P., individually as the parent company, and not on a consolidated basis.

● References to "MGP" mean Alliance Resource Management GP, LLC, ARLP's general partner.  

● References to "Mr. Craft" mean Joseph W. Craft III, the Chairman, President and Chief Executive Officer of MGP.

● References to "Intermediate Partnership" mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P.

● References to "Alliance Coal" mean Alliance Coal, LLC, an indirect wholly owned subsidiary of ARLP.

● References to "Alliance Minerals" mean Alliance Minerals, LLC, an indirect wholly owned subsidiary of ARLP.

● References to "Alliance Resource Properties" mean Alliance Resource Properties, LLC, an indirect wholly owned subsidiary of ARLP.

Organization

ARLP is a Delaware limited partnership listed on the NASDAQ Global Select Market under the ticker symbol "ARLP."  ARLP was formed in May 1999 and completed its initial public offering on August 19, 1999 when it acquired substantially all of the coal production and marketing assets of Alliance Resource Holdings, Inc., a Delaware corporation, and its subsidiaries.  We are managed by our general partner, MGP, a Delaware limited liability company which holds a non-economic general partner interest in ARLP.

JC Resources Acquisition

On February 22, 2023, we acquired approximately 2,682 oil & gas net royalty acres in the Delaware Basin from JC Resources LP ("JC Resources"), an entity owned by Mr. Craft, for $72.3 million, which was funded with cash on hand ("JC Resources Acquisition"). Because JC Resources is owned by Mr. Craft, the JC Resources Acquisition is accounted for as a reorganization of entities under common control, whereby the assets and liabilities acquired from JC Resources are combined with the ARLP Partnership at their historical amounts for all periods presented.  The recasting of 2022 for the JC Resources Acquisition increased revenues by $3.4 million and $5.9 million for the three and six months ended June 30, 2022, respectively, and increased income from operations, net income and comprehensive income by $2.1 million and $3.5 million for the three and six months ended June 30, 2022, respectively. We did not recast historical earnings per limited partner unit as pre-acquisition earnings from the JC Resources Acquisition were allocated to our general partner. For more information on this acquisition please see Note 2 – Acquisition.

Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of June 30, 2023 and December 31, 2022 and the results of our operations and comprehensive income for the three months ended June 30, 2023 and 2022, and cash flows for the six months ended June 30, 2023 and 2022.  All intercompany transactions and accounts have been eliminated.

These condensed consolidated financial statements and notes are prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting and do not include all the information normally included with financial statements prepared in accordance with generally accepted accounting principles ("GAAP") of the United

States.  These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.

These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of the results for the periods presented.  Results for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2023.

Use of Estimates

The preparation of the ARLP Partnership's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in our condensed consolidated financial statements. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and on deposit, including highly liquid investments with maturities of three months or less. At times the ARLP Partnership maintains deposits in federally insured financial institutions in excess of stated federally insured limits.  Management monitors the credit ratings and concentration of risk with these financial institutions on a continuing basis to safeguard cash deposits. Based on this monitoring and other diligence, including discussions with representatives of the financial institutions, we have no reason to believe that any of the financial institutions in which we have deposits in excess of stated federally insured limits are facing financial difficulties, defaults or limited liquidity situations that would cause us to be unable to access to our deposits.

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ACQUISITIONS

6 Months Ended

Jun. 30, 2023

ACQUISITIONS

ACQUISITIONS

2.ACQUISITIONS

JC Resources

As discussed in Note 1 – Organization and Presentation, on February 22, 2023, we completed the JC Resources Acquisition, which gives us increased exposure to a prolific area of the Delaware Basin that is within close proximity to reserves that we currently own.  This acquisition was approved by the conflicts committee of MGP's board of directors, which is comprised entirely of independent directors.  Because JC Resources is under common control with us, we recorded the acquisition at JC Resources' carrying value for each period presented. The carrying value of the mineral interests as well as related receivables and payables at February 22, 2023 was $65.0 million inclusive of $25.4 million and $37.8 million of mineral interests in proved and unproved properties, respectively. The JC Resources Acquisition increased revenues included in our condensed consolidated statements of income by $2.4 million and $5.4 million for the three and six months ended June 30, 2023, respectively.

Acquisition Agreement

On January 27, 2023, we entered into a one-year collaborative agreement with a third party, effective January 1, 2023, committing up to $35.0 million for the acquisition of oil & gas mineral interests in the Midland and Delaware Basins. Under the agreement, the third party assists us in the identification, evaluation, and acquisition of target oil & gas mineral interests. In exchange for these services, the third party receives a participation share, partially funded by the third party, and is paid a periodic management fee.  As of June 30, 2023, we have purchased $1.9 million and $2.1 million of oil & gas mineral interests in proved and unproved properties, respectively, pursuant to this agreement.  Management fees paid under this agreement have been immaterial.

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CONTINGENCIES

6 Months Ended

Jun. 30, 2023

CONTINGENCIES

CONTINGENCIES

3.CONTINGENCIES

Certain of our subsidiaries are party to litigation in which the plaintiffs allege violations of the Fair Labor Standards Act and state law due to alleged failure to compensate for time "donning" and "doffing" equipment and to account for certain bonuses in the calculation of overtime rates and pay. The plaintiffs seek class and collective action certification, which we oppose, and the courts have not yet made definitive final rulings on those issues. We had a mediation with the plaintiffs on June 12, 2023 but no settlement was reached. We are defending this litigation vigorously and continue to believe the plaintiffs' claims are without merit. We believe our ultimate exposure, if any, will not be material to our results of operations or financial position; however, if our current belief that the claims are without merit

is not upheld, it is reasonably possible that the ultimate resolution of these matters could result in a potential loss that may be material to our results of operations.

We also have various other lawsuits, claims and regulatory proceedings incidental to our business that are pending against the ARLP Partnership. We record an accrual for a potential loss related to these matters when, in management's opinion, such loss is probable and reasonably estimable. Based on known facts and circumstances, we believe the ultimate outcome of these outstanding lawsuits, claims and regulatory proceedings will not have a material adverse effect on our financial condition, results of operations or liquidity. However, if the results of these matters are different from management's current expectations and in amounts greater than our accruals, such matters could have a material adverse effect on our business and operations.

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INVENTORIES

6 Months Ended

Jun. 30, 2023

INVENTORIES

INVENTORIES

4.INVENTORIES

Inventories consist of the following:

	June 30,		December 31,
	2023		2022
	(in thousands)
Coal	$	66,383	$	23,553
Supplies (net of reserve for obsolescence of $7,456 and $6,601, respectively)		62,557		53,773
Total inventories, net	$	128,940	$	77,326

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2023

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

5.FAIR VALUE MEASUREMENTS

The following table summarizes our fair value measurements within the hierarchy not included elsewhere in these notes:

	June 30, 2023						December 31, 2022
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
	(in thousands)
Long-term debt	$	—	$	429,757	$	—	$	—	$	424,420	$	—
Total	$	—	$	429,757	$	—	$	—	$	424,420	$	—

The carrying amounts for cash equivalents, accounts receivable, accounts payable, accrued and other liabilities approximate fair value due to the short maturity of those instruments.

The estimated fair value of our long-term debt, including current maturities, is based on interest rates that we believe are currently available to us in active markets for issuance of debt with similar terms and remaining maturities (See Note 6 – Long-Term Debt).  The fair value of debt, which is based upon these interest rates, is classified as a Level 2 measurement under the fair value hierarchy.

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LONG-TERM DEBT

6 Months Ended

Jun. 30, 2023

LONG-TERM DEBT

LONG-TERM DEBT

6.LONG-TERM DEBT

Long-term debt consists of the following:

					Unamortized Discount and
	Principal				Debt Issuance Costs
	June 30,		December 31,		June 30,		December 31,
	2023		2022		2023		2022
	(in thousands)
Revolving credit facility	$	—	$	—	$	(8,806)	$	(2,702)
Term loan		70,312		—		(1,538)		—
Senior notes		339,214		400,000		(1,427)		(2,134)
Securitization facility		—		—		—		—
November 2019 equipment financing		15,425		21,072		—		—
June 2020 equipment financing		4,018		5,937		—		—
		428,969		427,009		(11,771)		(4,836)
Less current maturities		(38,194)		(24,970)		423		—
Total long-term debt	$	390,775	$	402,039	$	(11,348)	$	(4,836)

Credit Facility.  On January 13, 2023, Alliance Coal, as borrower, entered into a Credit Agreement (the "Credit Agreement") with various financial institutions. The Credit Agreement provides for a $425 million revolving credit facility, which includes a sublimit of $15.0 million for swingline borrowings and permits the issuance of letters of credit up to the full amount of $425 million (the "Revolving Credit Facility"), and for a term loan in an aggregate principal amount of $75 million (the "Term Loan"). The Credit Agreement matures on March 9, 2027, at which time the aggregate outstanding principal amount of all Revolving Credit Facility advances and all Term Loan advances are required to be repaid in full. The Credit Agreement will instead mature on January 30, 2025, if on that date our Senior Notes, as discussed below, are still outstanding and Alliance Coal does not have liquidity of at least $200 million. Interest is payable quarterly, with principal of the Term Loan due in quarterly installments equal to 6.25% of the original principal amount of the Term Loan beginning with the quarter ending June 30, 2023 and the balance payable at maturity. The Revolving Credit Facility replaces the $459.5 million revolving credit facility, which included a sublimit of $125.0 million for the issuance of letters of credit and a sublimit of $15.0 million for swingline borrowings, extended to the Intermediate Partnership under its Fifth Amended and Restated Credit Agreement, dated as of March 9, 2020 that would have expired on March 9, 2024. We incurred debt issuance costs during the six months ended June 30, 2023 of $11.7 million in connection with the Credit Agreement. These debt issuance costs are deferred and amortized as a component of interest expense over the term of the Revolving Credit Facility.

The Revolving Credit Facility is underwritten by a syndicate of eighteen financial institutions and the obligations of the lenders are individual obligations, which means the failure of one or more lenders to be able to fund its obligation does not relieve the remaining lenders from funding their obligations. Based on our diligence, including discussions with representatives of certain of these financial institutions, as of June 30, 2023 we have no reason to believe that the banks within our syndicate are facing financial difficulties, defaults or limited liquidity situations that would cause them to be unable to fund their obligations under the Credit Agreement. However, should any of the banks in our syndicate experience conditions in the future that limit their ability to fund their obligations, the amount available under the Revolving Credit Facility could be reduced.    

The Credit Agreement is guaranteed by ARLP and certain of its subsidiaries, including the Intermediate Partnership and most of the direct and indirect subsidiaries of Alliance Coal (the "Subsidiary Guarantors"). The Credit Agreement also is secured by substantially all of the assets of the Subsidiary Guarantors and Alliance Coal. Borrowings under the Credit Agreement bear interest, at our option, at either (i) an adjusted term rate plus the applicable margin or (ii) the base rate plus the applicable margin. The base rate is the highest of (i) the Overnight Bank Funding Rate plus 0.50%, (ii) the Administrative Agent's prime rate, and (iii) the Daily Simple Secured Overnight Financing Rate plus 100 basis points. The applicable margin for borrowings under the Credit Agreement are determined by reference to the Consolidated Debt to Consolidated Cash Flow Ratio and was 0.49% as of June 30, 2023. At June 30, 2023, we had $41.0 million of letters of credit outstanding with $384.0 million available for borrowing under the Revolving Credit Facility. We incurred an annual commitment fee of 0.50% on the undrawn portion of the Revolving Credit Facility. We utilize the Credit

Agreement, as appropriate, for working capital requirements, capital expenditures and investments, scheduled debt payments and distribution payments.  

The Credit Agreement contains various restrictions affecting Alliance Coal and its subsidiaries, including, among other things, restrictions on incurrence of additional indebtedness and liens, sale of assets, investments, mergers and consolidations and transactions with affiliates. In each case, these restrictions are subject to various exceptions. In addition, restrictions apply to cash distributions by Alliance Coal to the Intermediate Partnership if such distribution would result in exceeding a minimum fixed charge coverage ratio (as determined in the Credit Agreement) or in Alliance Coal having liquidity of less than $200 million. The Credit Agreement requires us to maintain (a) a debt of Alliance Coal to cash flow ratio of not more than 1.5 to 1.0, (b) a consolidated debt of Alliance Coal and the Intermediate Partnership to cash flow ratio of not more than 2.5 to 1.0 and (c) an interest coverage ratio of not less than 3.0 to 1.0, in each case, during the four most recently ended fiscal quarters. The debt of Alliance Coal to cash flow ratio, consolidated debt of Alliance Coal and the Intermediate Partnership to cash flow ratio, and interest coverage ratio were 0.10 to 1.0, 0.49 to 1.0 and 145.52 to 1.0, respectively, for the trailing twelve months ended June 30, 2023. We were in compliance with the covenants of the Credit Agreement as of June 30, 2023 and anticipate remaining in compliance with the covenants.  

Senior Notes.  On April 24, 2017, the Intermediate Partnership and Alliance Resource Finance Corporation (as co-issuer), a wholly owned subsidiary of the Intermediate Partnership ("Alliance Finance"), issued an aggregate principal amount of $400.0 million of senior unsecured notes due 2025 ("Senior Notes") in a private placement to qualified institutional buyers.  The Senior Notes have a term of eight years, maturing on May 1, 2025 (the "Term") and accrue interest at an annual rate of 7.5%.  Interest is payable semi-annually in arrears on each May 1 and November 1.  The indenture governing the Senior Notes contains customary terms, events of default and covenants relating to, among other things, the incurrence of debt, the payment of distributions or similar restricted payments, undertaking transactions with affiliates and limitations on asset sales. During the six months ended June 30, 2023, we repurchased $60.8 million of our Senior Notes. The gain on extinguishment of the Senior Notes is immaterial.  In July 2023, we redeemed an additional $50.0 million of our Senior Notes.      

Accounts Receivable Securitization.  Certain direct and indirect wholly owned subsidiaries of our Intermediate Partnership are party to a $60.0 million accounts receivable securitization facility ("Securitization Facility"). Under the Securitization Facility, certain subsidiaries sell certain trade receivables on an ongoing basis to our Intermediate Partnership, which then sells the trade receivables to AROP Funding, LLC ("AROP Funding"), a wholly owned bankruptcy-remote special purpose subsidiary of our Intermediate Partnership, which in turn borrows on a revolving basis up to $60.0 million secured by the trade receivables. After the sale, Alliance Coal, as servicer of the assets, collects the receivables on behalf of AROP Funding. The Securitization Facility bears interest based on a short-term bank yield index. On June 30, 2023, we had $11.7 million of letters of credit outstanding with $48.3 million available for borrowing under the Securitization Facility. The agreement governing the Securitization Facility contains customary terms and conditions, including limitations with regards to certain customer credit ratings. In January 2023, we extended the term of the Securitization Facility to January 2024. The Securitization Facility was previously scheduled to mature in January 2023. At June 30, 2023, we did not have any outstanding borrowings under the Securitization Facility.

November 2019 Equipment Financing.  On November 6, 2019, the Intermediate Partnership entered into an equipment financing arrangement accounted for as debt, wherein the Intermediate Partnership received $53.1 million in exchange for conveying its interest in certain equipment owned indirectly by the Intermediate Partnership and entering into a master lease agreement for that equipment (the "November 2019 Equipment Financing").  The November 2019 Equipment Financing contains customary terms and events of default and an implicit interest rate of 4.75%, providing for a four-year term with forty-seven monthly payments of $1.0 million and a balloon payment of $11.6 million upon maturity on November 6, 2023.  Upon maturity, the equipment will revert to the Intermediate Partnership.  

June 2020 Equipment Financing.  On June 5, 2020, the Intermediate Partnership entered into an equipment financing arrangement accounted for as debt, wherein the Intermediate Partnership received $14.7 million in exchange for conveying its interest in certain equipment owned indirectly by the Intermediate Partnership and entering into a master lease agreement for that equipment (the "June 2020 Equipment Financing"). The June 2020 Equipment Financing contains customary terms and events of default and provides for forty-eight monthly payments with an implicit interest rate of 6.1%, maturing on June 5, 2024. Upon maturity, the equipment will revert to the Intermediate Partnership.

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INCOME TAXES

6 Months Ended

Jun. 30, 2023

INCOME TAXES

INCOME TAXES

7.INCOME TAXES

Components of income tax expense are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Current:
Federal	$	3,935	$	6,175	$	8,247	$	11,209
State		272		445		573		831
		4,207		6,620		8,820		12,040
Deferred:
Federal		(190)		(255)		(521)		34,665
State		(18)		(34)		(59)		2,341
		(208)		(289)		(580)		37,006
Income tax expense	$	3,999	$	6,331	$	8,240	$	49,046

On March 15, 2022, Alliance Minerals changed its U.S. federal income tax status from a pass-through entity to a taxable entity via a "check the box" election (the "Tax Election"), which became effective January 1, 2022. The Tax Election resulted in the recognition of an initial deferred tax liability of $37.3 million and a corresponding increase to income tax expense for the six months ended June 30, 2022.

The effective income tax rate for our income tax expense for the three months ended June 30, 2023 and 2022 and the six months ended June 30, 2023 is less than the federal statutory rate, primarily due to the portion of income not subject to income taxes. The effective income tax rate for our income tax expense for the six months ended June 30, 2022 is greater than the federal statutory rate, primarily due to the effect of the Tax Election, partially offset by the portion of income not subject to income taxes.

Our 2019 through 2022 tax years remain open to examination by tax authorities. We have been notified by the Internal Revenue Service that lower-tier partnership income tax returns for the tax year ended December 31, 2020 have been selected for audit.

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VARIABLE INTEREST ENTITIES

6 Months Ended

Jun. 30, 2023

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

8.VARIABLE INTEREST ENTITIES

Cavalier Minerals

On November 10, 2014, our subsidiary, Alliance Minerals, and Bluegrass Minerals Management, LLC ("Bluegrass Minerals") entered into a limited liability company agreement (the "Cavalier Agreement") to create Cavalier Minerals JV, LLC ("Cavalier Minerals"), which was formed to indirectly acquire oil & gas mineral interests through its ownership in AllDale I & II.  Alliance Minerals owns a 96% member interest in Cavalier Minerals, and Bluegrass Minerals owns a 4% member interest in Cavalier Minerals and a profits interest which entitles it to receive distributions equal to 25% of all distributions (including in liquidation) after all members have recovered their investment.  Distributions with respect to Bluegrass Minerals' profits interest are offset by all distributions received by Bluegrass Minerals from the former general partners of AllDale I & II.  All members have recovered their investment and Bluegrass Minerals began receiving its profits interest distributions in late 2022.  We hold the managing member interest in Cavalier Minerals.  

We have concluded that Cavalier Minerals is a variable interest entity ("VIE") which we consolidate as the primary beneficiary because we are the managing member and a substantial equity owner in Cavalier Minerals.  Bluegrass Minerals' equity ownership of Cavalier Minerals is accounted for as noncontrolling ownership interest in our condensed consolidated balance sheets.  In addition, earnings attributable to Bluegrass Minerals are recognized as noncontrolling interest in our condensed consolidated statements of income.

AllDale III

In February 2017, Alliance Minerals committed to directly invest $30.0 million in AllDale Minerals III, LP ("AllDale III") which was created for similar investment purposes as AllDale I & II.  Alliance Minerals completed funding of this commitment in 2018. Alliance Minerals' limited partner interest in AllDale III is 13.9%.

The AllDale III Partnership Agreement includes a 25% profits interest for the general partner, subject to a return hurdle equal to the greater of 125% of cumulative capital contributions and a 10% internal rate of return, and following an 80/20 "catch-up" provision for the general partner.  

Since AllDale III is structured as a limited partnership with the limited partners (1) not having the ability to remove the general partner and (2) not participating significantly in the operational decisions, we concluded that AllDale III is a VIE.  We are not the primary beneficiary of AllDale III as we do not have the power to direct the activities that most significantly impact AllDale III's economic performance.  We account for our ownership interest in the income or loss of AllDale III as an equity method investment.  We record equity income or loss based on AllDale III's distribution structure. See Note 9 – Investments for more information.

Francis

On April 5, 2022, we invested $20 million in Francis Renewable Energy, LLC ("Francis"), in the form of a convertible note. Our convertible note matured on April 1, 2023 and was converted into a 17.8% preferred equity interest in Francis.  Prior to conversion, we had determined the note more closely represented equity as opposed to debt. Therefore, we accounted for the convertible note as an equity contribution even though we did not participate in Francis' earnings or losses and were not eligible to receive distributions during the term of the note. Subsequent to the conversion on April 1, 2023, we participate in earnings and losses and are eligible to receive distributions.

We have concluded that Francis is a VIE as the management structure is similar to a limited partnership with the non-managing members (i) not having the ability to remove the managing member and (ii) not participating significantly in the operational decisions.  We are not the primary beneficiary of Francis as we do not have the power to direct the activities that most significantly impact Francis's economic performance. We account for our ownership interest in the income or loss of Francis as an equity method investment. Following the conversion of our note to preferred equity, we record equity income or loss based on Francis' distribution structure. See Note 9 – Investments for more information.

NGP ETP IV

On June 2, 2022, we committed to purchase $25.0 million of limited partner interests in NGP ETP IV, L.P. ("NGP ETP IV"), a private equity fund sponsored by NGP and focused on investments that are part of the global transition toward a lower carbon economy. This commitment represents a 3.6% interest in NGP ETP IV. As of June 30, 2023, we have funded $5.4 million of this commitment.  

We have concluded that NGP ETP IV is a VIE as it is structured as a limited partnership with limited partners (i) not having the ability to remove the general partner and (ii) not participating significantly in the operational decisions. We are not the primary beneficiary of NGP ETP IV as we do not have the power to direct the activities that most significantly impact NGP ETP IV's economic performance.  We account for our ownership interest in the income or loss of NGP ETP IV as an equity method investment. See Note 9 – Investments for more information.

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INVESTMENTS

6 Months Ended

Jun. 30, 2023

INVESTMENTS

INVESTMENTS

9.           INVESTMENTS

AllDale III

As discussed in Note 8 – Variable Interest Entities, we account for our ownership interest in the income or loss of AllDale III as an equity method investment.  We record equity income or loss based on AllDale III's distribution structure.  The changes in our equity method investment in AllDale III for each of the periods presented were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Beginning balance	$	24,695	$	26,194	$	25,284	$	26,325
Equity method investment income		716		1,585		1,141		2,468
Distributions received		(960)		(1,501)		(1,974)		(2,515)
Ending balance	$	24,451	$	26,278	$	24,451	$	26,278

Francis

As discussed in Note 8 – Variable Interest Entities, we account for our ownership interest in the income or loss of Francis as an equity method investment. Prior to the conversion of our convertible note, we did not participate in Francis' earnings or losses; however, upon conversion on April 1, 2023 we began participating. As a development stage company, Francis depends on capital contributions to meet its operating and debt obligations.  We currently believe that the carrying value of our investment is recoverable; however, if Francis is unable to raise sufficient funds to continue its operations and meet its debt obligations, it could have an adverse effect on our investment. The changes in our equity method investment in Francis for three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Beginning balance	$	20,000	$	—	$	20,000	$	—
Contributions		—		20,000		—		20,000
Equity method investment loss		(2,620)		—		(2,620)		—
Ending balance	$	17,380	$	20,000	$	17,380	$	20,000

NGP ETP IV

As discussed in Note 8 – Variable Interest Entities, we account for our ownership interest in the income or loss of NGP ETP IV as an equity method investment. The changes in our equity method investment in NGP ETP IV for three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Beginning balance	$	4,254	$	—	$	4,087	$	—
Contributions		794		110		1,334		110
Equity method investment loss		(90)		—		(463)		—
Ending balance	$	4,958	$	110	$	4,958	$	110

Infinitum

We hold $42.0 million of Series D Preferred Stock in Infinitum Electric, Inc. ("Infinitum"), a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators.  Our preferred stock provides for non-cumulative dividends when and if declared by Infinitum's board of directors. Each share is convertible, at any time, at our option, into shares of common stock of Infinitum. We account for our ownership interest in Infinitum as an equity

investment without a readily determinable fair value.  It is not practicable to estimate the fair value of our investment in Infinitum because of the lack of a quoted market price for our ownership interests.  Therefore, we use a measurement alternative other than fair value to account for our investment. There have been no fair value adjustments in our investment in Infinitum subsequent to our purchases.  During the period we have not observed any price changes that have occurred to identical or similar securities sold by Infinitum that would indicate an adjustment to the fair value of our investment is warranted.  

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PARTNERS' CAPITAL

6 Months Ended

Jun. 30, 2023

PARTNERS' CAPITAL

PARTNERS' CAPITAL

10.PARTNERS' CAPITAL

Distributions

Distributions paid or declared during 2022 and 2023 were as follows:

Payment Date	Per Unit Cash Distribution		Total Cash Distribution
			(in thousands)
February 14, 2022	$	0.2500	$	32,750
May 13, 2022		0.3500		45,810
August 12, 2022		0.4000		52,338
November 14, 2022		0.5000		65,449
Total	$	1.5000	$	196,347
February 14, 2023	$	0.7000	$	91,938
May 15, 2023		0.7000		90,930
August 14, 2023 (1)		0.7000		—
Total	$	2.1000	$	182,868

(1) On July 28, 2023, we declared this quarterly distribution payable on August 14, 2023 to all unitholders of record as of August 7, 2023.  

Unit Repurchase Program

In January 2023, the board of directors of MGP authorized a $93.5 million increase to the unit repurchase program, which had $6.5 million of available capacity as of December 31, 2022. As a result, we are authorized to repurchase up to a total of $100.0 million of ARLP common units. During the six months ended June 30, 2023, we repurchased and retired 929,842 units at an average unit price of $20.90 for an aggregate purchase price of $19.4 million. Since inception of the unit repurchase program, we have repurchased and retired 6,390,446 units at an average unit price of $17.67 for an aggregate purchase price of $112.9 million.

Change in Partners' Capital

The following tables present the quarterly change in Partners' Capital for the six months ended June 30, 2023 and 2022:

						Accumulated
	Number of	Limited		General		Other
	Limited Partner	Partners'		Partner's		Comprehensive		Noncontrolling		Total Partners'
	Units	Capital		Capital		Income (Loss)		Interest		Capital
	(in thousands, except unit data)
Balance at January 1, 2023	127,195,219	$	1,656,025	$	66,548	$	(41,054)	$	26,507	$	1,708,026
Comprehensive income:
Net income	—		189,801		1,384		—		1,493		192,678
Actuarially determined long-term liability adjustments	—		—		—		565		—		565
Total comprehensive loss											193,243
Settlement of deferred compensation plans	860,060		(9,320)		—		—		—		(9,320)
Purchase of units under unit repurchase program	(860,060)		(18,209)		—		—		—		(18,209)
Common unit-based compensation	—		2,830		—		—		—		2,830
Distributions on deferred common unit-based compensation	—		(2,901)		—		—		—		(2,901)
Distributions from consolidated company to affiliate noncontrolling interest	—		—		—		—		(2,288)		(2,288)
JC Resources acquisition - See Note 1	—		(7,251)		(64,999)		—		—		(72,250)
Cash retained by JC Resources in acquisition - See Note 1	—		—		(2,933)		—		—		(2,933)
Distributions to Partners	—		(89,037)		—		—		—		(89,037)
Balance at March 31, 2023	127,195,219		1,721,938		—		(40,489)		25,712		1,707,161
Comprehensive income:
Net income	—		169,790		—		—		1,515		171,305
Actuarially determined long-term liability adjustments	—		—		—		563		—		563
Total comprehensive income											171,868
Settlement of deferred compensation plans	—		(1,014)		—		—		—		(1,014)
Purchase of units under unit repurchase program	(69,782)		(1,223)		—		—		—		(1,223)
Common unit-based compensation	—		3,121		—		—		—		3,121
Distributions on deferred common unit-based compensation	—		(1,895)		—		—		—		(1,895)
Distributions from consolidated company to noncontrolling interest	—		—		—		—		(2,226)		(2,226)
Distributions to Partners	—		(89,035)		—		—		—		(89,035)
Balance at June 30, 2023	127,125,437	$	1,801,682	$	—	$	(39,926)	$	25,001	$	1,786,757

						Accumulated
	Number of	Limited		General		Other
	Limited Partner	Partners'		Partner's		Comprehensive		Noncontrolling		Total Partners'
	Units	Capital		Capital *		Income (Loss)		Interest		Capital *
	(in thousands, except unit data)
Balance at January 1, 2022	127,195,219	$	1,279,183	$	68,075	$	(64,229)	$	11,115	$	1,294,144
Comprehensive income:
Net income	—		36,652		1,431		—		290		38,373
Actuarially determined long-term liability adjustments	—		—		—		790		—		790
Total comprehensive income											39,163
Common unit-based compensation	—		2,640		—		—		—		2,640
Distributions on deferred common unit-based compensation	—		(950)		—		—		—		(950)
Distributions from consolidated company to affiliate noncontrolling interest	—		—		—		—		(298)		(298)
Cash retained by JC Resources in acquisition - See Note 1	—		—		(1,590)		—		—		(1,590)
Distributions to Partners	—		(31,800)		—		—		—		(31,800)
Balance at March 31, 2022	127,195,219		1,285,725		67,916		(63,439)		11,107		1,301,309
Comprehensive income:
Net income	—		161,478		2,050		—		323		163,851
Actuarially determined long-term liability adjustments	—		—		—		794		—		794
Total comprehensive loss											164,645
Common unit-based compensation	—		2,340		—		—		—		2,340
Distributions on deferred common unit-based compensation	—		(1,292)		—		—		—		(1,292)
Distributions from consolidated company to noncontrolling interest	—		—		—		—		(325)		(325)
Cash retained by JC Resources in acquisition - See Note 1	—		—		(2,484)		—		—		(2,484)
Distributions to Partners	—		(44,518)		—		—		—		(44,518)
Balance at June 30, 2022	127,195,219	$	1,403,733	$	67,482	$	(62,645)	$	11,105	$	1,419,675

* Recast as discussed in Note 1 – Organization and Presentation.  

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REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 2023

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

11.REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table illustrates the disaggregation of our revenues by type, including a reconciliation to our segment presentation as presented in Note 16 – Segment Information.

	Coal Operations				Royalties				Other,
	Illinois								Corporate and
	Basin		Appalachia		Oil & Gas		Coal		Elimination		Consolidated
	(in thousands)
Three Months Ended June 30, 2023
Coal sales	$	331,813	$	228,518	$	—	$	—	$	—	$	560,331
Oil & gas royalties		—		—		33,087		—		—		33,087
Coal royalties		—		—		—		16,567		(16,567)		—
Transportation revenues		21,178		9,349		—		—		—		30,527
Other revenues		2,401		375		325		—		14,790		17,891
Total revenues	$	355,392	$	238,242	$	33,412	$	16,567	$	(1,777)	$	641,836
Three Months Ended June 30, 2022
Coal sales	$	290,389	$	241,418	$	—	$	—	$	—	$	531,807
Oil & gas royalties *		—		—		39,287		—		—		39,287
Coal royalties		—		—		—		14,525		(14,525)		—
Transportation revenues		21,449		13,936		—		—		—		35,385
Other revenues		1,659		328		669		—		10,743		13,399
Total revenues	$	313,497	$	255,682	$	39,956	$	14,525	$	(3,782)	$	619,878
Six Months Ended June 30, 2023
Coal sales	$	668,723	$	470,392	$	—	$	—	$	—	$	1,139,115
Oil & gas royalties		—		—		67,584		—		—		67,584
Coal royalties		—		—		—		32,080		(32,080)		—
Transportation revenues		42,506		18,259		—		—		—		60,765
Other revenues		4,569		850		1,365		—		30,510		37,294
Total revenues	$	715,798	$	489,501	$	68,949	$	32,080	$	(1,570)	$	1,304,758
Six Months Ended June 30, 2022
Coal sales	$	544,294	$	375,873	$	—	$	—	$	—	$	920,167
Oil & gas royalties *		—		—		72,683		—		—		72,683
Coal royalties		—		—		—		29,692		(29,692)		—
Transportation revenues		40,340		24,417		—		—		—		64,757
Other revenues		3,559		691		793		—		20,650		25,693
Total revenues	$	588,193	$	400,981	$	73,476	$	29,692	$	(9,042)	$	1,083,300

* Recast as discussed in Note 1 – Organization and Presentation.

The following table illustrates the amount of our transaction price for all current coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied as of June 30, 2023 and disaggregated by segment and contract duration.

							2026 and
	2023		2024		2025		Thereafter		Total
	(in thousands)
Illinois Basin Coal Operations coal revenues	$	762,478	$	925,042	$	344,601	$	243,600	$	2,275,721
Appalachia Coal Operations coal revenues		452,387		574,481		325,425		1,600		1,353,893
Total coal revenues (1)	$	1,214,865	$	1,499,523	$	670,026	$	245,200	$	3,629,614

(1) Coal revenues generally consists of consolidated revenues excluding our Oil & Gas Royalties segment as well as intercompany revenues from our Coal Royalties segment.

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EARNINGS PER LIMITED PARTNER UNIT

6 Months Ended

Jun. 30, 2023

EARNINGS PER LIMITED PARTNER UNIT

EARNINGS PER LIMITED PARTNER UNIT

12.EARNINGS PER LIMITED PARTNER UNIT

We utilize the two-class method in calculating basic and diluted earnings per limited partner unit ("EPU").  Subsequent to the JC Resources Acquisition, which is discussed in more detail in Note 1 – Organization and Presentation, net income attributable to ARLP is allocated to limited partners and participating securities with nonforfeitable distributions or distribution equivalents, while net losses attributable to ARLP are allocated only to limited partners but not to participating securities.  Prior to the JC Resources Acquisition, in addition to limited partners and participating securities allocations, amounts are also allocated to our general partner for historical earnings from the mineral interests acquired in the JC Resources Acquisition.  

Our participating securities are outstanding restricted unit awards under our Long-Term Incentive Plan ("LTIP") and phantom units in notional accounts under our Supplemental Executive Retirement Plan ("SERP") and the MGP Amended and Restated Deferred Compensation Plan for Directors ("Directors' Deferred Compensation Plan").

The following is a reconciliation of net income attributable to ARLP used for calculating basic and diluted earnings per unit and the weighted-average units used in computing EPU for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022 (1)
	(in thousands, except per unit data)
Net income attributable to ARLP	$	169,790	$	163,528	$	360,975	$	201,611
Adjustment:
General partner's interest in net income attributable to ARLP		—		(2,050)		(1,384)		(3,481)
Limited partners' interest in net income attributable to ARLP		169,790		161,478		359,591		198,130
Less:
Distributions to participating securities		(2,396)		(1,720)		(4,828)		(3,272)
Undistributed earnings attributable to participating securities		(2,071)		(3,645)		(4,981)		(3,245)
Net income attributable to ARLP available to limited partners	$	165,323	$	156,113	$	349,782	$	191,613
Weighted-average limited partner units outstanding – basic and diluted		127,183		127,195		127,236		127,195
Earnings per limited partner unit - basic and diluted (2)	$	1.30	$	1.23	$	2.75	$	1.51

(1) Recast as discussed in Note 1 – Organization and Presentation.

(2) Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive.  The combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 2,577 and 2,896 for the three and six months ended June 30, 2023, respectively, and 3,529 and 3,289 for the three and six months ended June 30, 2022, respectively, were considered anti-dilutive under the treasury stock method.

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WORKERS' COMPENSATION AND PNEUMOCONIOSIS

6 Months Ended

Jun. 30, 2023

WORKERS' COMPENSATION AND PNEUMOCONIOSIS

WORKERS' COMPENSATION AND PNEUMOCONIOSIS

13.WORKERS' COMPENSATION AND PNEUMOCONIOSIS

The changes in the workers' compensation liability, including current and long-term liability balances, for each of the periods presented were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Beginning balance	$	50,017	$	53,206	$	49,452	$	53,448
Changes in accruals		2,196		2,271		6,070		4,546
Payments		(2,646)		(3,278)		(6,505)		(6,082)
Interest accretion		551		287		1,101		574
Valuation loss (gain) (1)		990		(5,265)		990		(5,265)
Ending balance	$	51,108	$	47,221	$	51,108	$	47,221

(1) Our estimate of the liability for the present value of current workers′ compensation benefits is based on our actuarial calculations.  Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claims development patterns, mortality, medical costs and interest rates.  The valuation loss in 2023 is due to adverse claims development.  The valuation gain in 2022 is due to an increase in the discount rate from 2.41% on December 31, 2021 to 4.22% on June 30, 2022.

We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a claim have been met.  The deductible level may vary by claim year.  Our workers' compensation liability above is presented on a gross basis and does not include our expected receivables on our insurance policy.  Our receivables for traumatic injury claims under this policy as of June 30, 2023 are $4.1 million and are included in Other long-term assets on our condensed consolidated balance sheet.

Certain of our mine operating entities are liable under state statutes and the Federal Coal Mine Health and Safety Act of 1969, as amended, to pay pneumoconiosis, or black lung, benefits to eligible employees and former employees and their dependents.  Components of the net periodic benefit cost for each of the periods presented are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Service cost	$	675	$	954	$	1,344	$	1,901
Interest cost (1)		1,238		749		2,476		1,496
Net amortization (1)		346		259		691		519
Net periodic benefit cost	$	2,259	$	1,962	$	4,511	$	3,916

(1) Interest cost and net amortization are included in the Other income (expense) line item within our condensed consolidated statements of income.

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COMMON UNIT-BASED COMPENSATION PLANS

6 Months Ended

Jun. 30, 2023

COMMON UNIT-BASED COMPENSATION PLANS

COMMON UNIT-BASED COMPENSATION PLANS

14.COMMON UNIT-BASED COMPENSATION PLANS

Long-Term Incentive Plan

A summary of non-vested LTIP grants as of and for the six months ended June 30, 2023 is as follows:

	Number of units	Weighted average grant date fair value per unit		Intrinsic value
				(in thousands)
Non-vested grants at January 1, 2023	3,697,133	$	7.40		75,126
Granted (1)	447,225		21.54
Vested (2)	(1,291,330)		5.02
Forfeited	(145,584)		6.86
Non-vested grants at June 30, 2023	2,707,444		10.90		50,061

(1) The restricted units granted during 2023 have certain minimum-value guarantees per unit, regardless of whether or not the awards vest.

(2) During the six months ended June 30, 2023, we issued 860,060 unrestricted common units to the LTIP participants.  The remaining vested units were settled in cash to satisfy tax withholding obligations of the LTIP participants.

LTIP expense for grants of restricted units was $2.7 million and $2.1 million for the three months ended June 30, 2023 and 2022, respectively, and $4.9 million and $4.4 million for the six months ended June 30, 2023 and 2022, respectively. The total obligation associated with LTIP grants of restricted units as of June 30, 2023 was $14.1 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets.  As of June 30, 2023, there was $15.4 million in total unrecognized compensation expense related to the non-vested LTIP restricted unit grants that are expected to vest.  That expense is expected to be recognized over a weighted-average period of 1.1 years.

Supplemental Executive Retirement Plan and Directors' Deferred Compensation Plan

A summary of SERP and Directors' Deferred Compensation Plan activity as of and for the six months ended June 30, 2023 is as follows:

	Number of units	Weighted average grant date fair value per unit		Intrinsic value
				(in thousands)
Phantom units outstanding as of January 1, 2023	742,540	$	20.28	$	15,088
Granted	49,480		19.72
Settled (1)	(49,331)		20.27
Phantom units outstanding as of June 30, 2023	742,689		20.38		13,732

(1) During the six months ended June 30, 2023, we purchased 27,576 ARLP common units on the open market to settle the account of a participant under the SERP.  Units purchased and delivered to the participant were net of units settled in cash to satisfy tax withholding obligations.

Total SERP and Directors' Deferred Compensation Plan expense was $0.6 million and $0.3 million for the three months ended June 30, 2023 and 2022, respectively, and $1.2 million and $0.6 million for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, the total obligation associated with the SERP and Directors' Deferred Compensation Plan was $15.1 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets.

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COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

6 Months Ended

Jun. 30, 2023

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

15.COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

Eligible employees at certain of our mining operations participate in a defined benefit plan (the "Pension Plan") that we sponsor.  The Pension Plan is currently closed to new applicants and participants in the Pension Plan are no longer receiving benefit accruals for service.  The benefit formula for the Pension Plan is a fixed dollar unit based on years of service.  Components of the net periodic benefit cost for each of the periods presented are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Interest cost	$	1,296	$	936	$	2,591	$	1,868
Expected return on plan assets		(1,517)		(1,664)		(3,115)		(3,329)
Amortization of prior service cost		46		46		93		93
Amortization of net loss		171		489		344		972
Net periodic benefit credit (1)	$	(4)	$	(193)	$	(87)	$	(396)

(1) Net periodic benefit credit for the Pension Plan is included in the Other income (expense) line item within our condensed consolidated statements of income.

As a result of certain pension plan relief provided by the American Rescue Plan Act enacted in March 2021, we do not expect to make contributions to the Pension Plan during 2023.

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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2023

SEGMENT INFORMATION

SEGMENT INFORMATION

16.SEGMENT INFORMATION

We operate in the United States as a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic and international utilities, metallurgical and industrial users as well as royalty income from oil & gas mineral interests. In addition, we continue to position ourselves as a reliable energy partner for the future as we pursue opportunities that support the advancement of energy and related infrastructure. We aggregate multiple operating segments into four reportable segments, Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties. We also have an "all other" category referred to as Other, Corporate and Elimination. Our two coal operations reportable segments correspond to major coal producing regions in the eastern United States with similar economic characteristics including coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues. The two coal operations reportable segments include seven mining complexes operating in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia and a coal loading terminal in Indiana on the Ohio River. Our Oil & Gas Royalties reportable segment includes our oil & gas mineral interests which are located primarily in the Permian (Delaware and Midland), Anadarko (SCOOP/STACK) and Williston (Bakken) basins. The operations within our Oil & Gas Royalties reportable segment primarily include receiving royalties and lease bonuses for our oil & gas mineral interests. Our Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties, which are either (a) leased to our mining complexes or (b) near our coal mining operations but not yet leased.

The Illinois Basin Coal Operations reportable segment includes (a) the Gibson County Coal mining complex, (b) the Warrior mining complex, (c) the River View mining complex and (d) the Hamilton mining complex. The segment also includes our Mt. Vernon Transfer Terminal, LLC ("Mt. Vernon") coal loading terminal in Indiana which operates on the Ohio River, Mid-America Carbonates, LLC and other support services, and our non-operating mining complexes.      

The Appalachia Coal Operations reportable segment includes (a) the Mettiki mining complex, (b) the Tunnel Ridge mining complex and (c) the MC Mining mining complex.

The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by AR Midland, LP ("AR Midland") and AllDale I & II and includes Alliance Minerals' equity interests in both AllDale III (Note 9 – Investments) and Cavalier Minerals.

The Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties that are (a) leased to certain of our mining complexes in both the Illinois Basin Coal Operations and

Appalachia Coal Operations reportable segments or (b) located near our operations and external mining operations. Approximately two-thirds of the coal sold by our Coal Operations' mines is leased from our Coal Royalties entities.

Other, Corporate and Elimination includes marketing and administrative activities, Matrix Design Group, LLC, its subsidiaries, and Alliance Design Group, LLC (collectively referred to as the "Matrix Group"), our investments in Francis, Infinitum and NGP ETP IV (see Note 9 – Investments), Wildcat Insurance, which assists the ARLP Partnership with its insurance requirements, AROP Funding and Alliance Finance (both discussed in Note 6 – Long-Term Debt) and other miscellaneous activities. The eliminations included in Other, Corporate and Elimination primarily represent the intercompany coal royalty transactions described above between our Coal Royalties reportable segment and our coal operations' mines.

Reportable segment results are presented below.

	Coal Operations				Royalties				Other,
	Illinois								Corporate and
	Basin		Appalachia		Oil & Gas		Coal		Elimination		Consolidated
	(in thousands)
Three Months Ended June 30, 2023
Revenues - Outside	$	355,392	$	238,242	$	33,412	$	—	$	14,790	$	641,836
Revenues - Intercompany		—		—		—		16,567		(16,567)		—
Total revenues (2)		355,392		238,242		33,412		16,567		(1,777)		641,836
Segment Adjusted EBITDA Expense (3)		214,666		119,319		3,562		5,597		(4,710)		338,434
Segment Adjusted EBITDA (4)		119,551		109,573		29,050		10,970		222		269,366
Capital expenditures (5)		57,469		31,309		40		—		725		89,543
Three Months Ended June 30, 2022
Revenues - Outside (1)	$	313,497	$	255,682	$	39,956	$	—	$	10,743	$	619,878
Revenues - Intercompany		—		—		—		14,525		(14,525)		—
Total revenues (2)		313,497		255,682		39,956		14,525		(3,782)		619,878
Segment Adjusted EBITDA Expense (1) (3)		194,697		117,369		3,582		5,398		(4,624)		316,422
Segment Adjusted EBITDA (1) (4)		97,352		124,377		37,638		9,127		839		269,333
Capital expenditures		35,343		22,491		—		—		4,995		62,829
Six Months Ended June 30, 2023
Revenues - Outside	$	715,798	$	489,501	$	68,949	$	—	$	30,510	$	1,304,758
Revenues - Intercompany		—		—		—		32,080		(32,080)		—
Total revenues (2)		715,798		489,501		68,949		32,080		(1,570)		1,304,758
Segment Adjusted EBITDA Expense (3)		421,735		245,118		7,986		10,985		(8,094)		677,730
Segment Adjusted EBITDA (4)		251,559		226,123		59,095		21,095		3,441		561,313
Total assets		830,821		470,929		758,816		322,926		404,451		2,787,943
Capital expenditures (5)		119,451		63,814		42		400		1,310		185,017
Six Months Ended June 30, 2022
Revenues - Outside (1)	$	588,193	$	400,981	$	73,476	$	—	$	20,650	$	1,083,300
Revenues - Intercompany		—		—		—		29,692		(29,692)		—
Total revenues (2)		588,193		400,981		73,476		29,692		(9,042)		1,083,300
Segment Adjusted EBITDA Expense (1) (3)		372,286		201,084		6,859		10,217		(12,568)		577,878
Segment Adjusted EBITDA (1) (4)		175,567		175,480		68,473		19,475		3,525		442,520
Total assets (1)		748,291		457,724		734,760		288,509		171,389		2,400,673
Capital expenditures		71,890		40,836		—		—		9,256		121,982

(1) Recast for the JC Resources Acquisition as discussed in Note 1 – Organization and Presentation.

(2) Revenues included in the Other, Corporate and Elimination column are attributable to intercompany eliminations, which are primarily intercompany coal royalty eliminations, outside revenues at the Matrix Group and other outside miscellaneous sales and revenue activities.

(3) Segment Adjusted EBITDA Expense includes operating expenses, coal purchases, if applicable, and other income. Transportation expenses are excluded as transportation revenues are recognized in an amount equal to transportation expenses when title passes to the customer.  

The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to Operating expenses (excluding depreciation, depletion and amortization):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Operating expenses (excluding depreciation, depletion and amortization)	$	334,402	$	316,850	$	673,125	$	578,873
Outside coal purchases		4,209		151		4,209		151
Other expense (income)		(177)		(579)		396		(1,146)
Segment Adjusted EBITDA Expense	$	338,434	$	316,422	$	677,730	$	577,878

(4) Segment Adjusted EBITDA is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization, and general and administrative expenses.  Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments.  Consolidated Segment Adjusted EBITDA is reconciled to net income as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Net income	$	171,305	$	163,851	$	363,983	$	202,224
Noncontrolling interest		(1,515)		(323)		(3,008)		(613)
Net income attributable to ARLP	$	169,790	$	163,528	$	360,975	$	201,611
General and administrative		20,130		22,480		41,215		41,102
Depreciation, depletion and amortization		68,639		67,690		134,189		131,830
Interest expense, net		6,808		9,304		16,694		18,931
Income tax expense		3,999		6,331		8,240		49,046
Consolidated Segment Adjusted EBITDA	$	269,366	$	269,333	$	561,313	$	442,520

(5) Capital expenditures for the three and six months ended June 30, 2023 exclude $1.1 million and $3.9 million, respectively, paid towards the Acquisition Agreement.  Capital expenditures for the six months ended June 30, 2023 also exclude the $72.3 million paid for the JC Resources Acquisition (See Note 2 – Acquisitions).

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ORGANIZATION AND PRESENTATION (Policies)

6 Months Ended

Jun. 30, 2023

ORGANIZATION AND PRESENTATION

Consolidation

Significant Relationships Referenced in Notes to Condensed Consolidated Financial Statements

● References to "we," "us," "our" or "ARLP Partnership" mean the business and operations of Alliance Resource Partners, L.P., the parent company, as well as its consolidated subsidiaries.

● References to "ARLP" mean Alliance Resource Partners, L.P., individually as the parent company, and not on a consolidated basis.

● References to "MGP" mean Alliance Resource Management GP, LLC, ARLP's general partner.  

● References to "Mr. Craft" mean Joseph W. Craft III, the Chairman, President and Chief Executive Officer of MGP.

● References to "Intermediate Partnership" mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P.

● References to "Alliance Coal" mean Alliance Coal, LLC, an indirect wholly owned subsidiary of ARLP.

● References to "Alliance Minerals" mean Alliance Minerals, LLC, an indirect wholly owned subsidiary of ARLP.

● References to "Alliance Resource Properties" mean Alliance Resource Properties, LLC, an indirect wholly owned subsidiary of ARLP.

Organization

ARLP is a Delaware limited partnership listed on the NASDAQ Global Select Market under the ticker symbol "ARLP."  ARLP was formed in May 1999 and completed its initial public offering on August 19, 1999 when it acquired substantially all of the coal production and marketing assets of Alliance Resource Holdings, Inc., a Delaware corporation, and its subsidiaries.  We are managed by our general partner, MGP, a Delaware limited liability company which holds a non-economic general partner interest in ARLP.

JC Resources Acquisition

JC Resources Acquisition

On February 22, 2023, we acquired approximately 2,682 oil & gas net royalty acres in the Delaware Basin from JC Resources LP ("JC Resources"), an entity owned by Mr. Craft, for $72.3 million, which was funded with cash on hand ("JC Resources Acquisition"). Because JC Resources is owned by Mr. Craft, the JC Resources Acquisition is accounted for as a reorganization of entities under common control, whereby the assets and liabilities acquired from JC Resources are combined with the ARLP Partnership at their historical amounts for all periods presented.  The recasting of 2022 for the JC Resources Acquisition increased revenues by $3.4 million and $5.9 million for the three and six months ended June 30, 2022, respectively, and increased income from operations, net income and comprehensive income by $2.1 million and $3.5 million for the three and six months ended June 30, 2022, respectively. We did not recast historical earnings per limited partner unit as pre-acquisition earnings from the JC Resources Acquisition were allocated to our general partner. For more information on this acquisition please see Note 2 – Acquisition.

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of June 30, 2023 and December 31, 2022 and the results of our operations and comprehensive income for the three months ended June 30, 2023 and 2022, and cash flows for the six months ended June 30, 2023 and 2022.  All intercompany transactions and accounts have been eliminated.

These condensed consolidated financial statements and notes are prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting and do not include all the information normally included with financial statements prepared in accordance with generally accepted accounting principles ("GAAP") of the United

States.  These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.

These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of the results for the periods presented.  Results for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2023.

Use of Estimates

Use of Estimates

The preparation of the ARLP Partnership's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in our condensed consolidated financial statements. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and on deposit, including highly liquid investments with maturities of three months or less. At times the ARLP Partnership maintains deposits in federally insured financial institutions in excess of stated federally insured limits.  Management monitors the credit ratings and concentration of risk with these financial institutions on a continuing basis to safeguard cash deposits. Based on this monitoring and other diligence, including discussions with representatives of the financial institutions, we have no reason to believe that any of the financial institutions in which we have deposits in excess of stated federally insured limits are facing financial difficulties, defaults or limited liquidity situations that would cause us to be unable to access to our deposits.

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INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2023

INVENTORIES

Schedule of inventories

	June 30,		December 31,
	2023		2022
	(in thousands)
Coal	$	66,383	$	23,553
Supplies (net of reserve for obsolescence of $7,456 and $6,601, respectively)		62,557		53,773
Total inventories, net	$	128,940	$	77,326

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2023

FAIR VALUE MEASUREMENTS

Summary of fair value measurements within the hierarchy

	June 30, 2023						December 31, 2022
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
	(in thousands)
Long-term debt	$	—	$	429,757	$	—	$	—	$	424,420	$	—
Total	$	—	$	429,757	$	—	$	—	$	424,420	$	—

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LONG-TERM DEBT (Tables)

6 Months Ended

Jun. 30, 2023

LONG-TERM DEBT

Schedule of long-term debt

					Unamortized Discount and
	Principal				Debt Issuance Costs
	June 30,		December 31,		June 30,		December 31,
	2023		2022		2023		2022
	(in thousands)
Revolving credit facility	$	—	$	—	$	(8,806)	$	(2,702)
Term loan		70,312		—		(1,538)		—
Senior notes		339,214		400,000		(1,427)		(2,134)
Securitization facility		—		—		—		—
November 2019 equipment financing		15,425		21,072		—		—
June 2020 equipment financing		4,018		5,937		—		—
		428,969		427,009		(11,771)		(4,836)
Less current maturities		(38,194)		(24,970)		423		—
Total long-term debt	$	390,775	$	402,039	$	(11,348)	$	(4,836)

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INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2023

INCOME TAXES

Components of income tax expense

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Current:
Federal	$	3,935	$	6,175	$	8,247	$	11,209
State		272		445		573		831
		4,207		6,620		8,820		12,040
Deferred:
Federal		(190)		(255)		(521)		34,665
State		(18)		(34)		(59)		2,341
		(208)		(289)		(580)		37,006
Income tax expense	$	3,999	$	6,331	$	8,240	$	49,046

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INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2023

All Dale Minerals III

INVESTMENTS

Schedule of changes in equity method investments

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Beginning balance	$	24,695	$	26,194	$	25,284	$	26,325
Equity method investment income		716		1,585		1,141		2,468
Distributions received		(960)		(1,501)		(1,974)		(2,515)
Ending balance	$	24,451	$	26,278	$	24,451	$	26,278

Francis Renewable Energy

INVESTMENTS

Schedule of changes in equity method investments

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Beginning balance	$	20,000	$	—	$	20,000	$	—
Contributions		—		20,000		—		20,000
Equity method investment loss		(2,620)		—		(2,620)		—
Ending balance	$	17,380	$	20,000	$	17,380	$	20,000

NGP ETP

INVESTMENTS

Schedule of changes in equity method investments

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Beginning balance	$	4,254	$	—	$	4,087	$	—
Contributions		794		110		1,334		110
Equity method investment loss		(90)		—		(463)		—
Ending balance	$	4,958	$	110	$	4,958	$	110

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PARTNERS' CAPITAL (Tables)

6 Months Ended

Jun. 30, 2023

PARTNERS' CAPITAL

Summary of quarterly per unit distribution paid

Payment Date	Per Unit Cash Distribution		Total Cash Distribution
			(in thousands)
February 14, 2022	$	0.2500	$	32,750
May 13, 2022		0.3500		45,810
August 12, 2022		0.4000		52,338
November 14, 2022		0.5000		65,449
Total	$	1.5000	$	196,347
February 14, 2023	$	0.7000	$	91,938
May 15, 2023		0.7000		90,930
August 14, 2023 (1)		0.7000		—
Total	$	2.1000	$	182,868

(1) On July 28, 2023, we declared this quarterly distribution payable on August 14, 2023 to all unitholders of record as of August 7, 2023.  

Summary of changes to Partners' Capital

						Accumulated
	Number of	Limited		General		Other
	Limited Partner	Partners'		Partner's		Comprehensive		Noncontrolling		Total Partners'
	Units	Capital		Capital		Income (Loss)		Interest		Capital
	(in thousands, except unit data)
Balance at January 1, 2023	127,195,219	$	1,656,025	$	66,548	$	(41,054)	$	26,507	$	1,708,026
Comprehensive income:
Net income	—		189,801		1,384		—		1,493		192,678
Actuarially determined long-term liability adjustments	—		—		—		565		—		565
Total comprehensive loss											193,243
Settlement of deferred compensation plans	860,060		(9,320)		—		—		—		(9,320)
Purchase of units under unit repurchase program	(860,060)		(18,209)		—		—		—		(18,209)
Common unit-based compensation	—		2,830		—		—		—		2,830
Distributions on deferred common unit-based compensation	—		(2,901)		—		—		—		(2,901)
Distributions from consolidated company to affiliate noncontrolling interest	—		—		—		—		(2,288)		(2,288)
JC Resources acquisition - See Note 1	—		(7,251)		(64,999)		—		—		(72,250)
Cash retained by JC Resources in acquisition - See Note 1	—		—		(2,933)		—		—		(2,933)
Distributions to Partners	—		(89,037)		—		—		—		(89,037)
Balance at March 31, 2023	127,195,219		1,721,938		—		(40,489)		25,712		1,707,161
Comprehensive income:
Net income	—		169,790		—		—		1,515		171,305
Actuarially determined long-term liability adjustments	—		—		—		563		—		563
Total comprehensive income											171,868
Settlement of deferred compensation plans	—		(1,014)		—		—		—		(1,014)
Purchase of units under unit repurchase program	(69,782)		(1,223)		—		—		—		(1,223)
Common unit-based compensation	—		3,121		—		—		—		3,121
Distributions on deferred common unit-based compensation	—		(1,895)		—		—		—		(1,895)
Distributions from consolidated company to noncontrolling interest	—		—		—		—		(2,226)		(2,226)
Distributions to Partners	—		(89,035)		—		—		—		(89,035)
Balance at June 30, 2023	127,125,437	$	1,801,682	$	—	$	(39,926)	$	25,001	$	1,786,757

						Accumulated
	Number of	Limited		General		Other
	Limited Partner	Partners'		Partner's		Comprehensive		Noncontrolling		Total Partners'
	Units	Capital		Capital *		Income (Loss)		Interest		Capital *
	(in thousands, except unit data)
Balance at January 1, 2022	127,195,219	$	1,279,183	$	68,075	$	(64,229)	$	11,115	$	1,294,144
Comprehensive income:
Net income	—		36,652		1,431		—		290		38,373
Actuarially determined long-term liability adjustments	—		—		—		790		—		790
Total comprehensive income											39,163
Common unit-based compensation	—		2,640		—		—		—		2,640
Distributions on deferred common unit-based compensation	—		(950)		—		—		—		(950)
Distributions from consolidated company to affiliate noncontrolling interest	—		—		—		—		(298)		(298)
Cash retained by JC Resources in acquisition - See Note 1	—		—		(1,590)		—		—		(1,590)
Distributions to Partners	—		(31,800)		—		—		—		(31,800)
Balance at March 31, 2022	127,195,219		1,285,725		67,916		(63,439)		11,107		1,301,309
Comprehensive income:
Net income	—		161,478		2,050		—		323		163,851
Actuarially determined long-term liability adjustments	—		—		—		794		—		794
Total comprehensive loss											164,645
Common unit-based compensation	—		2,340		—		—		—		2,340
Distributions on deferred common unit-based compensation	—		(1,292)		—		—		—		(1,292)
Distributions from consolidated company to noncontrolling interest	—		—		—		—		(325)		(325)
Cash retained by JC Resources in acquisition - See Note 1	—		—		(2,484)		—		—		(2,484)
Distributions to Partners	—		(44,518)		—		—		—		(44,518)
Balance at June 30, 2022	127,195,219	$	1,403,733	$	67,482	$	(62,645)	$	11,105	$	1,419,675

* Recast as discussed in Note 1 – Organization and Presentation.  

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REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

6 Months Ended

Jun. 30, 2023

REVENUE FROM CONTRACTS WITH CUSTOMERS

Schedule of disaggregation of revenues by type

	Coal Operations				Royalties				Other,
	Illinois								Corporate and
	Basin		Appalachia		Oil & Gas		Coal		Elimination		Consolidated
	(in thousands)
Three Months Ended June 30, 2023
Coal sales	$	331,813	$	228,518	$	—	$	—	$	—	$	560,331
Oil & gas royalties		—		—		33,087		—		—		33,087
Coal royalties		—		—		—		16,567		(16,567)		—
Transportation revenues		21,178		9,349		—		—		—		30,527
Other revenues		2,401		375		325		—		14,790		17,891
Total revenues	$	355,392	$	238,242	$	33,412	$	16,567	$	(1,777)	$	641,836
Three Months Ended June 30, 2022
Coal sales	$	290,389	$	241,418	$	—	$	—	$	—	$	531,807
Oil & gas royalties *		—		—		39,287		—		—		39,287
Coal royalties		—		—		—		14,525		(14,525)		—
Transportation revenues		21,449		13,936		—		—		—		35,385
Other revenues		1,659		328		669		—		10,743		13,399
Total revenues	$	313,497	$	255,682	$	39,956	$	14,525	$	(3,782)	$	619,878
Six Months Ended June 30, 2023
Coal sales	$	668,723	$	470,392	$	—	$	—	$	—	$	1,139,115
Oil & gas royalties		—		—		67,584		—		—		67,584
Coal royalties		—		—		—		32,080		(32,080)		—
Transportation revenues		42,506		18,259		—		—		—		60,765
Other revenues		4,569		850		1,365		—		30,510		37,294
Total revenues	$	715,798	$	489,501	$	68,949	$	32,080	$	(1,570)	$	1,304,758
Six Months Ended June 30, 2022
Coal sales	$	544,294	$	375,873	$	—	$	—	$	—	$	920,167
Oil & gas royalties *		—		—		72,683		—		—		72,683
Coal royalties		—		—		—		29,692		(29,692)		—
Transportation revenues		40,340		24,417		—		—		—		64,757
Other revenues		3,559		691		793		—		20,650		25,693
Total revenues	$	588,193	$	400,981	$	73,476	$	29,692	$	(9,042)	$	1,083,300

* Recast as discussed in Note 1 – Organization and Presentation.

Schedule of current coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied

							2026 and
	2023		2024		2025		Thereafter		Total
	(in thousands)
Illinois Basin Coal Operations coal revenues	$	762,478	$	925,042	$	344,601	$	243,600	$	2,275,721
Appalachia Coal Operations coal revenues		452,387		574,481		325,425		1,600		1,353,893
Total coal revenues (1)	$	1,214,865	$	1,499,523	$	670,026	$	245,200	$	3,629,614

(1) Coal revenues generally consists of consolidated revenues excluding our Oil & Gas Royalties segment as well as intercompany revenues from our Coal Royalties segment.

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EARNINGS PER LIMITED PARTNER UNIT (Tables)

6 Months Ended

Jun. 30, 2023

EARNINGS PER LIMITED PARTNER UNIT

Reconciliation of net income (loss) and EPU calculations

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022 (1)
	(in thousands, except per unit data)
Net income attributable to ARLP	$	169,790	$	163,528	$	360,975	$	201,611
Adjustment:
General partner's interest in net income attributable to ARLP		—		(2,050)		(1,384)		(3,481)
Limited partners' interest in net income attributable to ARLP		169,790		161,478		359,591		198,130
Less:
Distributions to participating securities		(2,396)		(1,720)		(4,828)		(3,272)
Undistributed earnings attributable to participating securities		(2,071)		(3,645)		(4,981)		(3,245)
Net income attributable to ARLP available to limited partners	$	165,323	$	156,113	$	349,782	$	191,613
Weighted-average limited partner units outstanding – basic and diluted		127,183		127,195		127,236		127,195
Earnings per limited partner unit - basic and diluted (2)	$	1.30	$	1.23	$	2.75	$	1.51

(1) Recast as discussed in Note 1 – Organization and Presentation.

(2) Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive.  The combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 2,577 and 2,896 for the three and six months ended June 30, 2023, respectively, and 3,529 and 3,289 for the three and six months ended June 30, 2022, respectively, were considered anti-dilutive under the treasury stock method.

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WORKERS' COMPENSATION AND PNEUMOCONIOSIS BENEFITS (Tables)

6 Months Ended

Jun. 30, 2023

Black lung benefits:

Reconciliation of changes in workers' compensation liability

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Beginning balance	$	50,017	$	53,206	$	49,452	$	53,448
Changes in accruals		2,196		2,271		6,070		4,546
Payments		(2,646)		(3,278)		(6,505)		(6,082)
Interest accretion		551		287		1,101		574
Valuation loss (gain) (1)		990		(5,265)		990		(5,265)
Ending balance	$	51,108	$	47,221	$	51,108	$	47,221

(1) Our estimate of the liability for the present value of current workers′ compensation benefits is based on our actuarial calculations.  Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claims development patterns, mortality, medical costs and interest rates.  The valuation loss in 2023 is due to adverse claims development.  The valuation gain in 2022 is due to an increase in the discount rate from 2.41% on December 31, 2021 to 4.22% on June 30, 2022.

Pneumoconiosis benefits

Black lung benefits:

Components of net periodic benefit cost

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Service cost	$	675	$	954	$	1,344	$	1,901
Interest cost (1)		1,238		749		2,476		1,496
Net amortization (1)		346		259		691		519
Net periodic benefit cost	$	2,259	$	1,962	$	4,511	$	3,916

(1) Interest cost and net amortization are included in the Other income (expense) line item within our condensed consolidated statements of income.

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COMMON UNIT-BASED COMPENSATION PLANS (Tables)

6 Months Ended

Jun. 30, 2023

ARLP LTIP

COMMON UNIT-BASED COMPENSATION PLANS

Summary of non-vested share activity

	Number of units	Weighted average grant date fair value per unit		Intrinsic value
				(in thousands)
Non-vested grants at January 1, 2023	3,697,133	$	7.40		75,126
Granted (1)	447,225		21.54
Vested (2)	(1,291,330)		5.02
Forfeited	(145,584)		6.86
Non-vested grants at June 30, 2023	2,707,444		10.90		50,061

(1) The restricted units granted during 2023 have certain minimum-value guarantees per unit, regardless of whether or not the awards vest.

(2) During the six months ended June 30, 2023, we issued 860,060 unrestricted common units to the LTIP participants.  The remaining vested units were settled in cash to satisfy tax withholding obligations of the LTIP participants.

SERP and Deferred Compensation Plans

COMMON UNIT-BASED COMPENSATION PLANS

Summary of activity in share-based plans

	Number of units	Weighted average grant date fair value per unit		Intrinsic value
				(in thousands)
Phantom units outstanding as of January 1, 2023	742,540	$	20.28	$	15,088
Granted	49,480		19.72
Settled (1)	(49,331)		20.27
Phantom units outstanding as of June 30, 2023	742,689		20.38		13,732

(1) During the six months ended June 30, 2023, we purchased 27,576 ARLP common units on the open market to settle the account of a participant under the SERP.  Units purchased and delivered to the participant were net of units settled in cash to satisfy tax withholding obligations.

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COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Tables)

6 Months Ended

Jun. 30, 2023

Defined benefit pension plan

Employee Benefit Plans

Components of net periodic benefit cost

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Interest cost	$	1,296	$	936	$	2,591	$	1,868
Expected return on plan assets		(1,517)		(1,664)		(3,115)		(3,329)
Amortization of prior service cost		46		46		93		93
Amortization of net loss		171		489		344		972
Net periodic benefit credit (1)	$	(4)	$	(193)	$	(87)	$	(396)

(1) Net periodic benefit credit for the Pension Plan is included in the Other income (expense) line item within our condensed consolidated statements of income.

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SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2023

SEGMENT INFORMATION

Schedule of reportable segment results

Reportable segment results are presented below.

	Coal Operations				Royalties				Other,
	Illinois								Corporate and
	Basin		Appalachia		Oil & Gas		Coal		Elimination		Consolidated
	(in thousands)
Three Months Ended June 30, 2023
Revenues - Outside	$	355,392	$	238,242	$	33,412	$	—	$	14,790	$	641,836
Revenues - Intercompany		—		—		—		16,567		(16,567)		—
Total revenues (2)		355,392		238,242		33,412		16,567		(1,777)		641,836
Segment Adjusted EBITDA Expense (3)		214,666		119,319		3,562		5,597		(4,710)		338,434
Segment Adjusted EBITDA (4)		119,551		109,573		29,050		10,970		222		269,366
Capital expenditures (5)		57,469		31,309		40		—		725		89,543
Three Months Ended June 30, 2022
Revenues - Outside (1)	$	313,497	$	255,682	$	39,956	$	—	$	10,743	$	619,878
Revenues - Intercompany		—		—		—		14,525		(14,525)		—
Total revenues (2)		313,497		255,682		39,956		14,525		(3,782)		619,878
Segment Adjusted EBITDA Expense (1) (3)		194,697		117,369		3,582		5,398		(4,624)		316,422
Segment Adjusted EBITDA (1) (4)		97,352		124,377		37,638		9,127		839		269,333
Capital expenditures		35,343		22,491		—		—		4,995		62,829
Six Months Ended June 30, 2023
Revenues - Outside	$	715,798	$	489,501	$	68,949	$	—	$	30,510	$	1,304,758
Revenues - Intercompany		—		—		—		32,080		(32,080)		—
Total revenues (2)		715,798		489,501		68,949		32,080		(1,570)		1,304,758
Segment Adjusted EBITDA Expense (3)		421,735		245,118		7,986		10,985		(8,094)		677,730
Segment Adjusted EBITDA (4)		251,559		226,123		59,095		21,095		3,441		561,313
Total assets		830,821		470,929		758,816		322,926		404,451		2,787,943
Capital expenditures (5)		119,451		63,814		42		400		1,310		185,017
Six Months Ended June 30, 2022
Revenues - Outside (1)	$	588,193	$	400,981	$	73,476	$	—	$	20,650	$	1,083,300
Revenues - Intercompany		—		—		—		29,692		(29,692)		—
Total revenues (2)		588,193		400,981		73,476		29,692		(9,042)		1,083,300
Segment Adjusted EBITDA Expense (1) (3)		372,286		201,084		6,859		10,217		(12,568)		577,878
Segment Adjusted EBITDA (1) (4)		175,567		175,480		68,473		19,475		3,525		442,520
Total assets (1)		748,291		457,724		734,760		288,509		171,389		2,400,673
Capital expenditures		71,890		40,836		—		—		9,256		121,982

(1) Recast for the JC Resources Acquisition as discussed in Note 1 – Organization and Presentation.

(2) Revenues included in the Other, Corporate and Elimination column are attributable to intercompany eliminations, which are primarily intercompany coal royalty eliminations, outside revenues at the Matrix Group and other outside miscellaneous sales and revenue activities.

(3) Segment Adjusted EBITDA Expense includes operating expenses, coal purchases, if applicable, and other income. Transportation expenses are excluded as transportation revenues are recognized in an amount equal to transportation expenses when title passes to the customer.  

The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to Operating expenses (excluding depreciation, depletion and amortization):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Operating expenses (excluding depreciation, depletion and amortization)	$	334,402	$	316,850	$	673,125	$	578,873
Outside coal purchases		4,209		151		4,209		151
Other expense (income)		(177)		(579)		396		(1,146)
Segment Adjusted EBITDA Expense	$	338,434	$	316,422	$	677,730	$	577,878

(4) Segment Adjusted EBITDA is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization, and general and administrative expenses.  Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments.  Consolidated Segment Adjusted EBITDA is reconciled to net income as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Net income	$	171,305	$	163,851	$	363,983	$	202,224
Noncontrolling interest		(1,515)		(323)		(3,008)		(613)
Net income attributable to ARLP	$	169,790	$	163,528	$	360,975	$	201,611
General and administrative		20,130		22,480		41,215		41,102
Depreciation, depletion and amortization		68,639		67,690		134,189		131,830
Interest expense, net		6,808		9,304		16,694		18,931
Income tax expense		3,999		6,331		8,240		49,046
Consolidated Segment Adjusted EBITDA	$	269,366	$	269,333	$	561,313	$	442,520

(5) Capital expenditures for the three and six months ended June 30, 2023 exclude $1.1 million and $3.9 million, respectively, paid towards the Acquisition Agreement.  Capital expenditures for the six months ended June 30, 2023 also exclude the $72.3 million paid for the JC Resources Acquisition (See Note 2 – Acquisitions).

Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Operating expenses (excluding depreciation, depletion and amortization)	$	334,402	$	316,850	$	673,125	$	578,873
Outside coal purchases		4,209		151		4,209		151
Other expense (income)		(177)		(579)		396		(1,146)
Segment Adjusted EBITDA Expense	$	338,434	$	316,422	$	677,730	$	577,878

Reconciliation of consolidated Segment Adjusted EBITDA to net income

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in thousands)
Net income	$	171,305	$	163,851	$	363,983	$	202,224
Noncontrolling interest		(1,515)		(323)		(3,008)		(613)
Net income attributable to ARLP	$	169,790	$	163,528	$	360,975	$	201,611
General and administrative		20,130		22,480		41,215		41,102
Depreciation, depletion and amortization		68,639		67,690		134,189		131,830
Interest expense, net		6,808		9,304		16,694		18,931
Income tax expense		3,999		6,331		8,240		49,046
Consolidated Segment Adjusted EBITDA	$	269,366	$	269,333	$	561,313	$	442,520

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ORGANIZATION AND PRESENTATION (Details) $ in Thousands		3 Months Ended			6 Months Ended
	Feb. 22, 2023 USD ($) a	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Ownership interests
JC Resources acquisition			$ (72,250)
Revenues		$ 641,836		$ 619,878	$ 1,304,758	$ 1,083,300
Income from operations		183,929		177,322	391,255	266,587
JC Resources
Ownership interests
Royalty acres, net | a	2,682
JC Resources acquisition	$ 72,300				72,300
Revenues		$ 2,400		3,400	$ 5,400	5,900
Income from operations				$ 2,100		$ 3,500

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ACQUISITIONS (Details) $ in Thousands		3 Months Ended		6 Months Ended
	Feb. 22, 2023 USD ($) a	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jan. 27, 2023 USD ($)
Asset acquisition
JC Resources acquisition				$ 64,999
Oil & gas royalty acquisition				3,935
Revenues		$ 641,836	$ 619,878	1,304,758	$ 1,083,300
Acquisition Agreement
Asset acquisition
Funding commitment						$ 35,000
Oil & gas royalty acquisition		1,100		3,900
Mineral interests in proved properties		1,900		1,900
Mineral interests in unproved properties		2,100		2,100
JC Resources
Asset acquisition
JC Resources acquisition	$ 65,000
Royalty acres, net | a	2,682
Mineral interests in proved properties	$ 25,400
Mineral interests in unproved properties	$ 37,800
Revenues		$ 2,400	$ 3,400	$ 5,400	$ 5,900

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INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
INVENTORIES
Coal	$ 66,383	$ 23,553
Supplies (net of reserve for obsolescence)	62,557	53,773
Total inventories, net	128,940	77,326
Reserve for obsolescence	$ 7,456	$ 6,601

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FAIR VALUE MEASUREMENTS (Details) - Estimated fair value - Significant Observable Inputs (Level 2) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
FAIR VALUE MEASUREMENTS
Long-term debt	$ 429,757	$ 424,420
Total	$ 429,757	$ 424,420

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LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Principal
Aggregate maturities of long-term debt	$ 428,969	$ 427,009
Less current maturities	(38,194)	(24,970)
Total long-term debt	390,775	402,039
Unamortized Discount and Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(11,771)	(4,836)
Less current maturities	423
Total unamortized debt issuance costs	(11,348)	(4,836)
Revolving credit facility
Unamortized Discount and Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(8,806)	(2,702)
Term loan
Principal
Aggregate maturities of long-term debt	70,312
Unamortized Discount and Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(1,538)
Senior notes due 2025
Principal
Aggregate maturities of long-term debt	339,214	400,000
Unamortized Discount and Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(1,427)	(2,134)
November 2019 equipment financing
Principal
Aggregate maturities of long-term debt	15,425	21,072
June 2020 equipment financing
Principal
Aggregate maturities of long-term debt	$ 4,018	$ 5,937

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LONG-TERM DEBT - Credit Facility (Details) $ in Thousands		6 Months Ended
	Jan. 13, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 09, 2020 USD ($)
Long-Term Debt
Debt issuance costs incurred		$ 11,744
Credit Agreement
Long-Term Debt
Maximum borrowing capacity	$ 425,000
Minimum liquidity to extend maturity	$ 200,000
Debt issuance costs incurred		11,700
Letters of credit outstanding		41,000
Debt available for borrowing		$ 384,000
Annual commitment fee percentage, undrawn portion		0.50%
ARLP debt arrangements requirements, debt to cash flow ratio		0.49
Interest coverage ratio	3.0
Actual cash flow to interest expense ratio for trailing twelve months		145.52
ARLP debt arrangements requirements, period over which the ratios are required to be maintained		12 months
Credit Agreement | Overnight Bank Funding Rate
Long-Term Debt
Basis spread for variable interest rate (as a percent)	0.50%
Credit Agreement | Daily Simple Secured Overnight Financing Rate
Long-Term Debt
Basis spread for variable interest rate (as a percent)	1.00%
Credit Agreement | Alliance Coal
Long-Term Debt
ARLP debt arrangements requirements, debt to cash flow ratio	1.5
Actual debt to cash flow ratio for trailing twelve months		0.10
Credit Agreement | Alliance Coal and Intermediate Partnership
Long-Term Debt
ARLP debt arrangements requirements, debt to cash flow ratio	2.5
Actual debt to cash flow ratio for trailing twelve months		0.49
Letters of credit subfacility
Long-Term Debt
Maximum borrowing capacity	$ 425,000		$ 125,000
Swingline subfacility
Long-Term Debt
Maximum borrowing capacity	15,000		15,000
Term loan
Long-Term Debt
Maximum borrowing term loan	$ 75,000
Interest rate (as a percent)	6.25%
Revolving credit facility
Long-Term Debt
Maximum borrowing capacity			$ 459,500

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LONG-TERM DEBT - 2025 Senior Notes (Details) - USD ($) $ in Thousands		1 Months Ended	6 Months Ended
	Apr. 24, 2017	Jul. 31, 2023	Jun. 30, 2023
Issuance of Senior Notes
Senior debt repaid			$ 65,474
Senior notes due 2025
Issuance of Senior Notes
Principal amount	$ 400,000
Term	8 years
Interest rate (as a percent)	7.50%
Senior debt repaid		$ 50,000	$ 60,800

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LONG-TERM DEBT - Securitization Facility (Details) - Securitization facility $ in Millions	Jun. 30, 2023 USD ($)
Long-Term Debt
Maximum borrowing capacity	$ 60.0
Letters of credit outstanding	11.7
Debt available for borrowing	48.3
Facility outstanding amount	$ 0.0

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LONG-TERM DEBT - Equipment financing and other (Details) $ in Millions	Jun. 05, 2020 USD ($)	Nov. 06, 2019 USD ($) payment
November 2019 Equipment Financing
Long-Term Debt
Principal amount		$ 53.1
Term		4 years
Effective interest rate (as a percent)		4.75%
Number of monthly payments | payment		47
Periodic Payment		$ 1.0
Balloon payment on maturity		$ 11.6
June 2020 equipment financing
Long-Term Debt
Principal amount	$ 14.7
Term	48 months
Effective interest rate (as a percent)	6.10%

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INCOME TAXES - Components (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Current:
Federal	$ 3,935	$ 6,175	$ 8,247	$ 11,209
State	272	445	573	831
Total current income tax expense	4,207	6,620	8,820	12,040
Deferred:
Federal	(190)	(255)	(521)	34,665
State	(18)	(34)	(59)	2,341
Total deferred income tax expense	(208)	(289)	(580)	37,006
Income tax expense	$ 3,999	$ 6,331	$ 8,240	$ 49,046

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INCOME TAXES - Tax election (Details) $ in Millions	Jun. 30, 2022 USD ($)
Change in tax accounting
Taxes
Deferred tax liability	$ 37.3

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VARIABLE INTEREST ENTITIES - Cavalier (Details)	6 Months Ended
	Jun. 30, 2023
Cavalier Minerals | Bluegrass Minerals
Variable Interest Entities
Incentive distribution of available cash (as a percent)	25.00%
Cavalier Minerals
Variable Interest Entities
Ownership interest in VIE (as a percent)	96.00%
Cavalier Minerals | Bluegrass Minerals
Variable Interest Entities
Noncontrolling ownership interest (as a percent)	4.00%

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VARIABLE INTEREST ENTITIES - AllDale III (Detail) - All Dale Minerals III - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Feb. 28, 2017
Investments
Other Commitment		$ 30.0
Distribution after hurdles (as a percent)	25.00%
Specified internal rate of return (as a percent)	10.00%
Percentage of available cash distributed	125.00%
All Dale Minerals III
Investments
Ownership percentage by limited partners	13.90%

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VARIABLE INTEREST ENTITIES - Investments (Detail) - USD ($) $ in Thousands				3 Months Ended		6 Months Ended
	Apr. 01, 2023	Jun. 02, 2022	Apr. 05, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Investments
Contributions to equity method investments						$ 1,334	$ 20,110
Francis Renewable Energy
Investments
Contributions to equity method investments			$ 20,000		$ 20,000		20,000
Francis Renewable Energy | Francis Renewable Energy
Investments
Ownership percentage by limited partners	17.80%
NGP ETP
Investments
Funding commitment		$ 25,000
Contributions to equity method investments				$ 794	$ 110	1,334	$ 110
Contributions to investee to date				$ 5,400		$ 5,400
NGP ETP | NGP ETP
Investments
Ownership percentage by limited partners		3.60%

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INVESTMENTS - Equity method (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Apr. 05, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Investments
Beginning balance				$ 49,371
Contributions				1,334	$ 20,110
Equity method investment income (loss)		$ (1,994)	$ 1,585	(1,942)	2,468
Ending balance		46,789		46,789
All Dale Minerals III
Investments
Beginning balance		24,695	26,194	25,284	26,325
Equity method investment income (loss)		716	1,585	1,141	2,468
Distributions received		(960)	(1,501)	(1,974)	(2,515)
Ending balance		24,451	26,278	24,451	26,278
Francis Renewable Energy
Investments
Beginning balance		20,000		20,000
Contributions	$ 20,000		20,000		20,000
Equity method investment income (loss)		(2,620)		(2,620)
Ending balance		17,380	20,000	17,380	20,000
NGP ETP
Investments
Beginning balance		4,254		4,087
Contributions		794	110	1,334	110
Equity method investment income (loss)		(90)		(463)
Ending balance		$ 4,958	$ 110	$ 4,958	$ 110

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INVESTMENTS - Non-equity method (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Investments
Equity investment without readily determinable fair value	$ 42,000	$ 42,000
Infinitum Electric
Investments
Equity investment without readily determinable fair value	$ 42,000

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PARTNERS' CAPITAL - Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands								6 Months Ended		12 Months Ended
	Aug. 14, 2023	May 15, 2023	Feb. 14, 2023	Nov. 14, 2022	Aug. 12, 2022	May 13, 2022	Feb. 14, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
PARTNERS' CAPITAL
Quarterly distribution paid (in dollars per unit)	$ 0.7000	$ 0.7000	$ 0.7000	$ 0.5000	$ 0.4000	$ 0.3500	$ 0.2500	$ 2.1000		$ 1.5000
Total Cash Distribution		$ 90,930	$ 91,938	$ 65,449	$ 52,338	$ 45,810	$ 32,750	$ 182,868	$ 78,560	$ 196,347

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PARTNERS' CAPITAL - Narrative (Details) - Limited Partners' Capital - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	6 Months Ended
	Jan. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Partners' capital
Increase in authorization amount	$ 93.5
Remaining authorized amount			$ 6.5
Repurchase and retire authorization	$ 100.0
Treasury units retired		$ 19.4
Number of units retired		929,842
Repurchase price (in dollars per unit)		$ 20.90
Aggregate
Partners' capital
Treasury units retired		$ 112.9
Number of units retired		6,390,446
Repurchase price (in dollars per unit)		$ 17.67

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PARTNERS' CAPITAL - Change (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Increase (decrease) in Partners' Capital
Balance at beginning of period	$ 1,707,161	$ 1,708,026	$ 1,301,309	$ 1,294,144	$ 1,708,026	$ 1,294,144
Balance at beginning of period (in units)		127,195,219			127,195,219
Comprehensive income (loss):
Net income	171,305	$ 192,678	163,851	38,373	$ 363,983	202,224
Actuarially determined long-term liability adjustments	563	565	794	790	1,128	1,584
COMPREHENSIVE INCOME	171,868	193,243	164,645	39,163	365,111	203,808
Settlement of deferred compensation plans	(1,014)	(9,320)
Purchase of units under unit repurchase program	(1,223)	(18,209)
Common unit-based compensation	3,121	2,830	2,340	2,640
Distributions on deferred common unit-based compensation	(1,895)	(2,901)	(1,292)	(950)
Distributions from consolidated company to noncontrolling interest	(2,226)	(2,288)	(325)	(298)
Distributions to Partners	(89,035)	(89,037)	(44,518)	(31,800)
JC Resources acquisition		(72,250)
Cash retained by JC Resources in acquisition		(2,933)	(2,484)	(1,590)
Balance at end of period	$ 1,786,757	1,707,161	1,419,675	1,301,309	$ 1,786,757	1,419,675
Balance at end of period (in units)	127,125,437				127,125,437
Accumulated Other Comprehensive Income (Loss)
Increase (decrease) in Partners' Capital
Balance at beginning of period	$ (40,489)	(41,054)	(63,439)	(64,229)	$ (41,054)	(64,229)
Comprehensive income (loss):
Actuarially determined long-term liability adjustments	563	565	794	790
Balance at end of period	(39,926)	(40,489)	(62,645)	(63,439)	(39,926)	(62,645)
Noncontrolling Interest
Increase (decrease) in Partners' Capital
Balance at beginning of period	25,712	26,507	11,107	11,115	26,507	11,115
Comprehensive income (loss):
Net income	1,515	1,493	323	290
Distributions from consolidated company to noncontrolling interest	(2,226)	(2,288)	(325)	(298)
Balance at end of period	25,001	25,712	11,105	11,107	25,001	11,105
Limited Partners' Capital
Increase (decrease) in Partners' Capital
Balance at beginning of period	$ 1,721,938	$ 1,656,025	$ 1,285,725	$ 1,279,183	$ 1,656,025	$ 1,279,183
Balance at beginning of period (in units)	127,195,219	127,195,219	127,195,219	127,195,219	127,195,219	127,195,219
Comprehensive income (loss):
Net income	$ 169,790	$ 189,801	$ 161,478	$ 36,652
Settlement of deferred compensation plans	(1,014)	$ (9,320)
Settlement of deferred compensation plans (in units)		860,060
Purchase of units under unit repurchase program	$ (1,223)	$ (18,209)
Purchase of units under unit repurchase program (in units)	(69,782)	(860,060)
Common unit-based compensation	$ 3,121	$ 2,830	2,340	2,640
Distributions on deferred common unit-based compensation	(1,895)	(2,901)	(1,292)	(950)
Distributions to Partners	(89,035)	(89,037)	(44,518)	(31,800)
JC Resources acquisition		(7,251)
Balance at end of period	$ 1,801,682	$ 1,721,938	$ 1,403,733	$ 1,285,725	$ 1,801,682	$ 1,403,733
Balance at end of period (in units)	127,125,437	127,195,219	127,195,219	127,195,219	127,125,437	127,195,219
General Partners' Capital (Deficit)
Increase (decrease) in Partners' Capital
Balance at beginning of period		$ 66,548	$ 67,916	$ 68,075	$ 66,548	$ 68,075
Comprehensive income (loss):
Net income		1,384	2,050	1,431
JC Resources acquisition		(64,999)
Cash retained by JC Resources in acquisition		$ (2,933)	(2,484)	(1,590)
Balance at end of period			$ 67,482	$ 67,916		$ 67,482

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REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of revenues
Revenues	$ 641,836	$ 619,878	$ 1,304,758	$ 1,083,300
Coal sales
Disaggregation of revenues
Revenues	560,331	531,807	1,139,115	920,167
Oil & gas royalties
Disaggregation of revenues
Revenues	33,087	39,287	67,584	72,683
Transportation
Disaggregation of revenues
Revenues	30,527	35,385	60,765	64,757
Other revenues
Disaggregation of revenues
Revenues	17,891	13,399	37,294	25,693
Operating segments | Illinois Basin Coal
Disaggregation of revenues
Revenues	355,392	313,497	715,798	588,193
Operating segments | Illinois Basin Coal | Coal sales
Disaggregation of revenues
Revenues	331,813	290,389	668,723	544,294
Operating segments | Illinois Basin Coal | Transportation
Disaggregation of revenues
Revenues	21,178	21,449	42,506	40,340
Operating segments | Illinois Basin Coal | Other revenues
Disaggregation of revenues
Revenues	2,401	1,659	4,569	3,559
Operating segments | Appalachia Coal
Disaggregation of revenues
Revenues	238,242	255,682	489,501	400,981
Operating segments | Appalachia Coal | Coal sales
Disaggregation of revenues
Revenues	228,518	241,418	470,392	375,873
Operating segments | Appalachia Coal | Transportation
Disaggregation of revenues
Revenues	9,349	13,936	18,259	24,417
Operating segments | Appalachia Coal | Other revenues
Disaggregation of revenues
Revenues	375	328	850	691
Operating segments | Oil & Gas Royalties
Disaggregation of revenues
Revenues	33,412	39,956	68,949	73,476
Operating segments | Oil & Gas Royalties | Oil & gas royalties
Disaggregation of revenues
Revenues	33,087	39,287	67,584	72,683
Operating segments | Oil & Gas Royalties | Other revenues
Disaggregation of revenues
Revenues	325	669	1,365	793
Operating segments | Coal Royalties
Disaggregation of revenues
Revenues	16,567	14,525	32,080	29,692
Operating segments | Coal Royalties | Coal royalties
Disaggregation of revenues
Revenues	16,567	14,525	32,080	29,692
Other, Corporate and Elimination
Disaggregation of revenues
Revenues	(1,777)	(3,782)	(1,570)	(9,042)
Other, Corporate and Elimination | Coal royalties
Disaggregation of revenues
Revenues	(16,567)	(14,525)	(32,080)	(29,692)
Other, Corporate and Elimination | Other revenues
Disaggregation of revenues
Revenues	14,790	10,743	30,510	20,650
Elimination
Disaggregation of revenues
Revenues	(16,567)	(14,525)	(32,080)	(29,692)
Elimination | Coal Royalties
Disaggregation of revenues
Revenues	$ 16,567	$ 14,525	$ 32,080	$ 29,692

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REVENUE FROM CONTRACTS WITH CUSTOMERS - Supply contracts (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Performance obligations unsatisfied or partially unsatisfied
Total	$ 3,629,614
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 1,214,865
Expected timing of satisfaction period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 1,499,523
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 670,026
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 245,200
Expected timing of satisfaction period	1 year
Illinois Basin Coal
Performance obligations unsatisfied or partially unsatisfied
Total	$ 2,275,721
Illinois Basin Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 762,478
Expected timing of satisfaction period	6 months
Illinois Basin Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 925,042
Expected timing of satisfaction period	1 year
Illinois Basin Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 344,601
Expected timing of satisfaction period	1 year
Illinois Basin Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 243,600
Expected timing of satisfaction period	1 year
Appalachia Coal
Performance obligations unsatisfied or partially unsatisfied
Total	$ 1,353,893
Appalachia Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 452,387
Expected timing of satisfaction period	6 months
Appalachia Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 574,481
Expected timing of satisfaction period	1 year
Appalachia Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 325,425
Expected timing of satisfaction period	1 year
Appalachia Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 1,600
Expected timing of satisfaction period	1 year

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EARNINGS PER LIMITED PARTNER UNIT - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
EARNINGS PER LIMITED PARTNER UNIT
NET INCOME ATTRIBUTABLE TO ARLP	$ 169,790	$ 163,528	$ 360,975	$ 201,611
General partner's interest in net income attributable to ARLP		(2,050)	(1,384)	(3,481)
Limited partners' interest in net income attributable to ARLP	169,790	161,478	359,591	198,130
Distributions to participating securities	(2,396)	(1,720)	(4,828)	(3,272)
Undistributed earnings attributable to participating securities	(2,071)	(3,645)	(4,981)	(3,245)
Net income (loss) attributable to ARLP available to limited partners	$ 165,323	$ 156,113	$ 349,782	$ 191,613
Weighted-average limited partner units outstanding - basic (in units)	127,183,439	127,195,219	127,236,097	127,195,219
Weighted-average limited partner units outstanding - diluted (in units)	127,183,000	127,195,000	127,236,000	127,195,000
Earnings per limited partner unit - basic (in dollars per unit)	$ 1.30	$ 1.23	$ 2.75	$ 1.51
Earnings per limited partner unit - diluted (in dollars per unit)	$ 1.30	$ 1.23	$ 2.75	$ 1.51
Anti-dilutive under the treasury stock method (in units)	2,577,000	3,529,000	2,896,000	3,289,000

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WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Workers' Comp (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2021
Reconciliation of changes in the workers' compensation liability
Beginning balance	$ 50,017	$ 53,206	$ 49,452	$ 53,448
Changes in accruals	2,196	2,271	6,070	4,546
Payments	(2,646)	(3,278)	(6,505)	(6,082)
Interest accretion	551	287	1,101	574
Valuation loss (gain)	990	(5,265)	990	(5,265)
Ending balance	51,108	$ 47,221	51,108	$ 47,221	$ 53,448
Estimated present value of future obligations and other information
Workers' compensation discount rate				4.22%	2.41%
Other long-term assets
Estimated present value of future obligations and other information
Receivables for traumatic injury claims	$ 4,100		$ 4,100

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WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Periodic Benefit Cost (Details) - Pneumoconiosis benefits - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Black lung benefits:
Service cost	$ 675	$ 954	$ 1,344	$ 1,901
Interest cost	$ 1,238	$ 749	$ 2,476	$ 1,496
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)
Net amortization	$ 346	$ 259	$ 691	$ 519
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)
Net periodic benefit cost	$ 2,259	$ 1,962	$ 4,511	$ 3,916

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COMMON UNIT-BASED COMPENSATION PLANS - LTIP Grants (Details) - ARLP LTIP - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Number of units
Balance at the beginning of the period (in units)	3,697,133
Granted (in units)	447,225
Vested (in units)	(1,291,330)
Forfeited (in units)	(145,584)
Balance at the end of the period (in units)	2,707,444
Weighted average grant date fair value per unit
Balance at the beginning of the period (in dollars per unit)	$ 7.40
Granted (in dollars per unit)	21.54
Vested (in dollars per unit)	5.02
Forfeited (in dollars per unit)	6.86
Balance at the end of the period (in dollars per unit)	$ 10.90
Intrinsic value (in dollars)
Intrinsic value of outstanding grants (in dollars)	$ 50,061	$ 75,126
Other information
Common units issued	860,060

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COMMON UNIT-BASED COMPENSATION PLANS - LTIP Other (Details) - ARLP LTIP - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Other information
Unit-based compensation expense	$ 2.7	$ 2.1	$ 4.9	$ 4.4
Total unit-based obligation recorded	14.1		14.1
Unrecognized compensation expense (in dollars)	$ 15.4		$ 15.4
Weighted-average period for recognition of expense			1 year 1 month 6 days

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COMMON UNIT-BASED COMPENSATION PLANS - SERP and Directors (Details) - SERP and Deferred Compensation Plans - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Number of units
Balance at the beginning of the period (in units)			742,540
Granted (in units)			49,480
Settled (in units)			(49,331)
Balance at the end of the period (in units)	742,689		742,689
Weighted average grant date fair value per unit
Balance at the beginning of the period (in dollars per unit)			$ 20.28
Granted (in dollars per unit)			19.72
Settled (in dollars per unit)			20.27
Balance at the end of the period (in dollars per unit)	$ 20.38		$ 20.38
Intrinsic value (in dollars)
Intrinsic value of outstanding grants (in dollars)	$ 13,732		$ 13,732		$ 15,088
Other information
Purchased for awards (in shares)			27,576
Unit-based compensation expense	600	$ 300	$ 1,200	$ 600
Total unit-based obligation recorded	$ 15,100		$ 15,100

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COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Details) - Defined benefit pension plan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Components of net periodic benefit cost:
Interest cost	$ 1,296	$ 936	$ 2,591	$ 1,868
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)
Expected return on plan assets	$ (1,517)	$ (1,664)	$ (3,115)	$ (3,329)
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)
Amortization of prior service cost	$ 46	$ 46	$ 93	$ 93
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)
Amortization of net loss	$ 171	$ 489	$ 344	$ 972
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)
Net periodic benefit cost	$ (4)	$ (193)	$ (87)	$ (396)

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SEGMENT INFORMATION - General (Details)	6 Months Ended
	Jun. 30, 2023 segment
SEGMENT INFORMATION
Number of reportable segments	4
Number Of Coal Reportable Segments	2
Number Of Mining Complex	7

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SEGMENT INFORMATION - Segment Results (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Reportable segment results
Revenues	$ 641,836	$ 619,878	$ 1,304,758	$ 1,083,300
Segment Adjusted EBITDA Expense	338,434	316,422	677,730	577,878
Segment Adjusted EBITDA	269,366	269,333	561,313	442,520
Total assets	2,787,943	2,400,673	2,787,943	2,400,673	$ 2,728,021
Capital expenditures	89,543	62,829	185,017	121,982
Operating segments | Illinois Basin Coal
Reportable segment results
Revenues	355,392	313,497	715,798	588,193
Segment Adjusted EBITDA Expense	214,666	194,697	421,735	372,286
Segment Adjusted EBITDA	119,551	97,352	251,559	175,567
Total assets	830,821	748,291	830,821	748,291
Capital expenditures	57,469	35,343	119,451	71,890
Operating segments | Appalachia Coal
Reportable segment results
Revenues	238,242	255,682	489,501	400,981
Segment Adjusted EBITDA Expense	119,319	117,369	245,118	201,084
Segment Adjusted EBITDA	109,573	124,377	226,123	175,480
Total assets	470,929	457,724	470,929	457,724
Capital expenditures	31,309	22,491	63,814	40,836
Operating segments | Oil & Gas Royalties
Reportable segment results
Revenues	33,412	39,956	68,949	73,476
Segment Adjusted EBITDA Expense	3,562	3,582	7,986	6,859
Segment Adjusted EBITDA	29,050	37,638	59,095	68,473
Total assets	758,816	734,760	758,816	734,760
Capital expenditures	40		42
Operating segments | Coal Royalties
Reportable segment results
Revenues	16,567	14,525	32,080	29,692
Segment Adjusted EBITDA Expense	5,597	5,398	10,985	10,217
Segment Adjusted EBITDA	10,970	9,127	21,095	19,475
Total assets	322,926	288,509	322,926	288,509
Capital expenditures			400
Other, Corporate and Elimination
Reportable segment results
Revenues	(1,777)	(3,782)	(1,570)	(9,042)
Segment Adjusted EBITDA Expense	(4,710)	(4,624)	(8,094)	(12,568)
Segment Adjusted EBITDA	222	839	3,441	3,525
Total assets	404,451	171,389	404,451	171,389
Capital expenditures	725	4,995	1,310	9,256
Elimination
Reportable segment results
Revenues	(16,567)	(14,525)	(32,080)	(29,692)
Elimination | Coal Royalties
Reportable segment results
Revenues	$ 16,567	$ 14,525	$ 32,080	$ 29,692

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SEGMENT INFORMATION - EBITDA Expense Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reconciliation of consolidated Segment Adjusted EBITDA Expense
Outside coal purchases	$ 4,209	$ 151	$ 4,209	$ 151
Other expense (income)	(177)	(579)	396	(1,146)
Segment Adjusted EBITDA Expense	338,434	316,422	677,730	577,878
Product
Reconciliation of consolidated Segment Adjusted EBITDA Expense
Operating expenses (excluding depreciation, depletion and amortization)	$ 334,402	$ 316,850	$ 673,125	$ 578,873

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SEGMENT INFORMATION - EBITDA Reconciliation (Details) - USD ($) $ in Thousands		3 Months Ended				6 Months Ended
	Feb. 22, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Reconciliation of consolidated Segment Adjusted EBITDA to net income
Net income		$ 171,305	$ 192,678	$ 163,851	$ 38,373	$ 363,983	$ 202,224
Noncontrolling interest		(1,515)		(323)		(3,008)	(613)
NET INCOME ATTRIBUTABLE TO ARLP		169,790		163,528		360,975	201,611
General and administrative		20,130		22,480		41,215	41,102
Depreciation, depletion and amortization		68,639		67,690		134,189	131,830
Interest expense, net		6,808		9,304		16,694	18,931
Income tax expense		3,999		6,331		8,240	49,046
Consolidated Segment Adjusted EBITDA		269,366		$ 269,333		561,313	$ 442,520
JC Resources acquisition			$ (72,250)
Oil & gas royalty acquisition						3,935
Acquisition Agreement
Reconciliation of consolidated Segment Adjusted EBITDA to net income
Oil & gas royalty acquisition		$ 1,100				3,900
JC Resources
Reconciliation of consolidated Segment Adjusted EBITDA to net income
JC Resources acquisition	$ 72,300					$ 72,300

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 169,790	$ 163,528	$ 360,975	$ 201,611

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Insider Trading Arrangements

3 Months Ended

6 Months Ended

Jun. 30, 2023

Jun. 30, 2023

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

During the three months ended June 30, 2023, no director or officer adopted or terminated (i) any contract, instructions or written plan for the purchase or sale of securities of the Partnership intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) and/or (ii) any written arrangement for the purchase or sale of securities of the Partnership that meets the definition of a non-Rule 10b5-1 trading arrangement as defined in Item 408(c).

Rule 10b5-1 Arrangement Adopted

false

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false