ALLIANCE RESOURCE PARTNERS LP, 10-Q filed on 5/9/2024
Quarterly Report
v3.24.1.u1
Document and Entity Information - shares
 3 Months Ended
Mar. 31, 2024
May 09, 2024
Document and Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2024  
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  
Title of 12(b) Security Common units  
Trading Symbol ARLP  
Security Exchange Name NASDAQ  
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  
Entity Common Units Outstanding   128,061,981
Entity Central Index Key 0001086600  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.24.1.u1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
CURRENT ASSETS:    
Cash and cash equivalents $ 133,957 $ 59,813
Trade receivables 272,191 282,622
Other receivables 9,208 9,678
Inventories, net 162,197 127,556
Advance royalties 6,173 7,780
Digital assets 30,325 9,579
Prepaid expenses and other assets 16,891 19,093
Total current assets 630,942 516,121
PROPERTY, PLANT AND EQUIPMENT:    
Property, plant and equipment, at cost 4,284,051 4,172,544
Less accumulated depreciation, depletion and amortization (2,204,392) (2,149,881)
Total property, plant and equipment, net 2,079,659 2,022,663
OTHER ASSETS:    
Advance royalties 78,933 71,125
Equity method investments 45,693 46,503
Equity securities 92,541 92,541
Operating lease right-of-use assets 16,357 16,569
Other long-term assets 21,662 22,904
Total other assets 255,186 249,642
TOTAL ASSETS 2,965,787 2,788,426
CURRENT LIABILITIES:    
Accounts payable 107,600 108,269
Accrued taxes other than income taxes 21,367 21,007
Accrued payroll and related expenses 27,301 29,884
Accrued interest 9,067 3,558
Workers' compensation and pneumoconiosis benefits 15,913 15,913
Other current liabilities 46,295 28,498
Current maturities, long-term debt, net 76,422 20,338
Total current liabilities 303,965 227,467
LONG-TERM LIABILITIES:    
Long-term debt, excluding current maturities, net 354,619 316,821
Pneumoconiosis benefits 128,809 127,249
Accrued pension benefit 8,112 8,618
Workers' compensation 36,843 37,257
Asset retirement obligations 147,769 146,925
Long-term operating lease obligations 13,684 13,661
Deferred income tax liabilities 33,060 33,450
Other liabilities 17,522 18,381
Total long-term liabilities 740,418 702,362
Total liabilities 1,044,383 929,829
COMMITMENTS AND CONTINGENCIES - (NOTE 4)
ARLP Partners' Capital:    
Limited Partners - Common Unitholders 128,061,981 and 127,125,437 units outstanding, respectively 1,958,382 1,896,027
Accumulated other comprehensive loss (60,602) (61,525)
Total ARLP Partners' Capital 1,897,780 1,834,502
Noncontrolling interest 23,624 24,095
Total Partners' Capital 1,921,404 1,858,597
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 2,965,787 $ 2,788,426
v3.24.1.u1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares
Mar. 31, 2024
Dec. 31, 2023
CONDENSED CONSOLIDATED BALANCE SHEETS    
Common units outstanding 128,061,981 127,125,437
v3.24.1.u1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
SALES AND OPERATING REVENUES:    
Revenues $ 651,697 $ 662,922
EXPENSES:    
Outside coal purchases 9,112  
General and administrative 22,129 21,085
Depreciation, depletion and amortization 65,549 65,550
Total operating expenses 491,402 455,596
INCOME FROM OPERATIONS 160,295 207,326
Interest expense (net of interest capitalized for the three months ended March 31, 2024 and 2023 of $2,298 and $1,407, respectively) (7,749) (12,676)
Interest income 1,276 2,790
Equity method investment income (loss) (553) 52
Change in fair value of digital assets 11,853  
Other expense (606) (573)
INCOME BEFORE INCOME TAXES 164,516 196,919
INCOME TAX EXPENSE 4,949 4,241
NET INCOME 159,567 192,678
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST (1,510) (1,493)
NET INCOME ATTRIBUTABLE TO ARLP 158,057 191,185
NET INCOME ATTRIBUTABLE TO ARLP    
GENERAL PARTNER   1,384
LIMITED PARTNERS $ 158,057 $ 189,801
EARNINGS PER LIMITED PARTNER UNIT - BASIC (in dollars per unit) $ 1.21 $ 1.45
EARNINGS PER LIMITED PARTNER UNIT - DILUTED (in dollars per unit) $ 1.21 $ 1.45
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING - BASIC (in units) 127,670,897 127,289,340
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING - DILUTED (in units) 127,671,000 127,289,000
Product    
EXPENSES:    
Operating expenses (excluding depreciation, depletion and amortization) $ 363,859 $ 338,723
Coal sales    
SALES AND OPERATING REVENUES:    
Revenues 561,879 578,784
Oil & gas royalties    
SALES AND OPERATING REVENUES:    
Revenues 37,030 34,497
Transportation    
SALES AND OPERATING REVENUES:    
Revenues 30,753 30,238
EXPENSES:    
Operating expenses (excluding depreciation, depletion and amortization) 30,753 30,238
Other revenues    
SALES AND OPERATING REVENUES:    
Revenues $ 22,035 $ 19,403
v3.24.1.u1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF INCOME    
Interest expense, interest capitalized $ 2,298 $ 1,407
v3.24.1.u1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
NET INCOME $ 159,567 $ 192,678
OTHER COMPREHENSIVE INCOME:    
OTHER COMPREHENSIVE INCOME 923 565
COMPREHENSIVE INCOME 160,490 193,243
Less: Comprehensive income attributable to noncontrolling interest (1,510) (1,493)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ARLP 158,980 191,750
Defined benefit pension plan    
OTHER COMPREHENSIVE INCOME:    
Amortization of prior service cost (1) 47 47
Amortization of net actuarial loss (1) 37 173
Total recognized in accumulated other comprehensive Income 84 220
Pneumoconiosis benefits    
OTHER COMPREHENSIVE INCOME:    
Amortization of net actuarial loss (1) 839 345
Total recognized in accumulated other comprehensive Income $ 839 $ 345
v3.24.1.u1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:      
CASH FLOWS FROM OPERATING ACTIVITIES $ 209,673 $ 221,688  
Property, plant and equipment:      
Capital expenditures (123,846) (95,474)  
Change in accounts payable and accrued liabilities 4,331 12,110  
Proceeds from sale of property, plant and equipment 164 2,395  
Contributions to equity method investments (625) (540)  
JC Resources acquisition   (64,999)  
Oil & gas reserve asset acquisitions (1,822) (2,800)  
Other 1,286 2,160  
Net cash used in investing activities (120,512) (147,148)  
CASH FLOWS FROM FINANCING ACTIVITIES:      
Borrowings under securitization facility 75,000    
Payments under securitization facility (30,000)    
Proceeds from equipment financings 54,626    
Payments on equipment financings (1,976) (3,759)  
Borrowings under revolving credit facilities 20,000    
Payments under revolving credit facilities (20,000)    
Borrowing under long-term debt   75,000  
Payments on long-term debt (4,688) (26,633)  
Payment of debt issuance costs   (11,653)  
Payments for purchases of units under unit repurchase program   (18,209)  
Payments for tax withholdings related to settlements under deferred compensation plans (13,292) (9,320)  
Excess purchase price over the contributed basis from JC Resources acquisition   (7,251)  
Cash retained by JC Resources in acquisition   (2,933)  
Distributions paid to Partners (91,246) (91,938) $ (364,579)
Other (3,441) (2,617)  
Net cash used in financing activities (15,017) (99,313)  
NET CHANGE IN CASH AND CASH EQUIVALENTS 74,144 (24,773)  
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 59,813 296,023 296,023
CASH AND CASH EQUIVALENTS AT END OF PERIOD 133,957 271,250 $ 59,813
SUPPLEMENTAL CASH FLOW INFORMATION:      
Cash paid for interest 3,248 2,175  
SUPPLEMENTAL NON-CASH ACTIVITY:      
Accounts payable for purchase of property, plant and equipment 18,917 56,391  
Market value of common units issued under deferred compensation plans before tax withholding requirements $ 32,566 $ 27,906  
v3.24.1.u1
ORGANIZATION AND PRESENTATION
 3 Months Ended
Mar. 31, 2024
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.

​

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 March 31, 2024 and December 31, 2023 and the results of our operations, comprehensive income and cash flows for the three months ended March 31, 2024 and 2023.  All intercompany transactions and accounts have been eliminated. Certain immaterial amounts in the prior quarter have been reclassified to conform to the current quarter presentation.

​

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, 2023.

​

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, 2024.

​

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.

​

Digital Assets

​

We began our crypto-mining activities during the second half of 2020 as we started mining bitcoin as a pilot project to monetize already paid for, yet underutilized, electricity load.  We continue to periodically be awarded digital assets through our crypto-mining activities. The awards are accounted for as revenue and valued at the exchange quoted price at the time they are awarded. Beginning January 1, 2024, with our adoption of the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60) ("ASU 2023-08"), the digital assets we hold are subsequently remeasured to fair value based on the exchange quoted price as of the balance sheet date and included on our condensed consolidated balance sheets within the Digital assets line item.  The fair value of our digital assets are based on the exchange quoted price and represent a Level 1 input under the fair value hierarchy. The activity from remeasurement of digital assets to fair value is reflected in our condensed consolidated statements of income within the Change in fair value of digital assets line item. Digital assets sold for cash nearly immediately after they are awarded to us for mining activities are presented as cash flows from operating activities, while other sales are reflected as cash flows from investing activities in our condensed consolidated statements of cash flows. Our realized gains or losses are determined as the difference between the proceeds received when the digital assets are sold and our cost basis in the digital assets. Our cost basis is the value of the digital assets when they are awarded less any impairment recognized prior to our adoption of ASU 2023-08. We use a first-in, first-out methodology to assign costs to our digital assets in the calculation of our realized gains or losses. See Note 6 – Digital Assets for additional information.  

v3.24.1.u1
NEW ACCOUNTING STANDARDS
 3 Months Ended
Mar. 31, 2024
NEW ACCOUNTING STANDARDS  
NEW ACCOUNTING STANDARDS

2.NEW ACCOUNTING STANDARDS

​

New Accounting Standards Issued and Adopted

​

In December 2023, the FASB issued ASU 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60) ("ASU 2023-08"), which requires an entity to measure certain digital assets at fair value with changes in the fair value recognized in net income. In addition, the guidance requires additional disclosures related to digital assets once adopted.  We adopted ASU 2023-08, effective January 1, 2024, which resulted in a cumulative-effect adjustment to increase the opening balance of Partners' Capital of $6.2 million.  See Note 6 – Digital Assets for more information on our digital assets.

​

New Accounting Standards Issued and Not Yet Adopted

​

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 primarily requires enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker ("CODM"), the amount and composition of other segment items, and the title and position of the CODM. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. We are currently evaluating the impact of adopting ASU 2023-07, but do not expect it to have a material effect on our consolidated financial statements.

​

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 primarily requires enhanced disclosures to (1) disclose specific categories in the rate reconciliation, (2) disclose the amount of income taxes paid and expensed disaggregated by federal, state, and foreign taxes, with further disaggregation by individual jurisdictions if certain criteria are met, and (3) disclose income (loss) from continuing operations before income tax (benefit) disaggregated between domestic and foreign. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2023-09, but do not expect it to have a material effect on our consolidated financial statements.
v3.24.1.u1
ACQUISITIONS
 3 Months Ended
Mar. 31, 2024
ACQUISITIONS  
ACQUISITIONS

3.ACQUISITIONS

​

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. On February 19, 2024, we renewed this agreement for an additional one-year term, committing up to $25.0 million.  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.  During the three months ended March 31, 2024, we purchased $0.3 million and $0.1 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.

​

Miscellaneous Acquisitions

​

In addition to the acquisitions under the collaborative agreement discussed above, we purchased $0.3 million and $1.2 million of oil & gas mineral interests in proved and unproved properties, respectively, during the three months ended March 31, 2024.

​
v3.24.1.u1
CONTINGENCIES
 3 Months Ended
Mar. 31, 2024
CONTINGENCIES  
CONTINGENCIES

4.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. In April 2024, we entered into a settlement agreement with the plaintiffs pursuant to which we agreed to settle such litigation for $15.3 million. As a result of reaching this settlement, which is subject to court approval, we have accrued $15.3 million as of March 31, 2024.  Our $15.3 million accrual is included in the Other current liabilities line item on our condensed consolidated balance sheet.

​

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 (if any), such matters could have a material adverse effect on our business and operations.
v3.24.1.u1
INVENTORIES
 3 Months Ended
Mar. 31, 2024
INVENTORIES  
INVENTORIES

5.INVENTORIES

​

Inventories consist of the following:

​

​

​

​

​

​

​

​

​

​

    

March 31, 

​

December 31, 

​

​

​

2024

    

2023

 

​

​

(in thousands)

​

​

​

​

​

​

​

​

​

Coal

​

$

88,108

​

$

56,549

​

Finished goods (net of reserve for obsolescence of $745 and $728, respectively)

​

​

4,174

​

​

3,908

​

Work in process

​

​

562

​

​

791

​

Raw materials

​

​

2,097

​

​

2,144

​

​

​

​

94,941

​

​

63,392

​

Supplies (net of reserve for obsolescence of $7,719 and $7,439, respectively)

​

 

67,256

​

 

64,164

​

Total inventories, net

​

$

162,197

​

$

127,556

​

​

During the three months ended March 31, 2024, we recorded lower of cost or net realizable value adjustments of $7.3 million to our coal inventories. These adjustments are a result of lower coal sale prices and higher cost per ton primarily due to a longwall move at Hamilton County Coal, LLC ("Hamilton") and ongoing development activities at the Henderson County mine at our River View Coal, LLC ("River View") mining complex.

​

Certain of our subsidiaries, primarily consisting of Matrix Design Group, LLC, its subsidiaries, and Alliance Design Group, LLC (collectively referred to as "Matrix Group"), manufacture a variety of products for our mining operations and third parties.  These products are primarily consumed internally by our mining operations with associated inventory historically presented as supplies inventory.  Recently Matrix Group has been increasing its production of

products with the intention to increase third-party sales.  We have therefore presented our manufactured goods inventories in the table above separately from our historical presentation of supplies inventory.
v3.24.1.u1
DIGITAL ASSETS
 3 Months Ended
Mar. 31, 2024
DIGITAL ASSETS  
DIGITAL ASSETS

6.DIGITAL ASSETS

​

The following table sets forth our digital assets as shown on the condensed consolidated balance sheet:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

​

​

Units

​

Cost Basis

​

Fair Value

​

Digital assets:

​

(in thousands, except unit data)

​

Bitcoin

​

​

425.10

​

$

12,769

​

$

30,325

​

Total

​

​

​

​

$

12,769

​

$

30,325

​

​

The following table represents a reconciliation of the fair values of our digital assets:

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

    

2024

​

Digital assets:

​

(in thousands)

​

Beginning balance

​

$

15,811

​

Additions

​

​

3,604

​

Dispositions

​

​

(943)

​

Change in fair value gains

​

​

11,853

​

Ending balance

​

$

30,325

​

​

As discussed in Note 2 – New Accounting Standards, our beginning balance is inclusive of a cumulative-effect adjustment of $6.2 million as of January 1, 2024.  Additions are the result of awarded digital assets received from our crypto-mining activities, while dispositions are the result of sales and payments for services. During the three months ended March 31, 2024, we had digital asset dispositions of $0.9 million, inclusive of realized gains of $0.6 million.
v3.24.1.u1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2024
FAIR VALUE MEASUREMENTS  
FAIR VALUE MEASUREMENTS

7.FAIR VALUE MEASUREMENTS

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

December 31, 2023

​

​

    

Level 1

    

Level 2

    

Level 3

    

Level 1

    

Level 2

    

Level 3

 

​

​

(in thousands)

​

Long-term debt

​

$

—

​

$

440,659

​

$

—

​

$

—

​

$

347,116

​

$

—

​

​

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 8 – Long-Term Debt for additional information on our long-term debt.

v3.24.1.u1
LONG-TERM DEBT
 3 Months Ended
Mar. 31, 2024
LONG-TERM DEBT  
LONG-TERM DEBT

8.LONG-TERM DEBT

​

Long-term debt consists of the following:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Unamortized Discount and

​

​

​

Principal

​

Debt Issuance Costs

​

​

​

March 31, 

​

December 31, 

​

March 31, 

​

December 31, 

​

​

    

2024

    

2023

    

2024

    

2023

 

​

​

(in thousands)

​

Revolving credit facility

​

$

—

​

$

—

​

$

(7,478)

​

$

(8,118)

​

Term loan

​

 

56,250

​

 

60,938

​

 

(1,304)

​

 

(1,416)

​

Senior notes

​

 

284,607

​

 

284,607

​

 

(724)

​

 

(891)

​

Securitization facility

​

​

45,000

​

​

—

​

​

—

​

​

—

​

June 2020 equipment financing

​

​

1,028

​

​

2,039

​

​

—

​

​

—

​

February 2024 equipment financing

​

​

53,662

​

​

—

​

​

—

​

​

—

​

​

​

 

440,547

​

 

347,584

​

 

(9,506)

​

 

(10,425)

​

Less current maturities

​

 

(76,873)

​

 

(20,789)

​

 

451

​

 

451

​

Total long-term debt

​

$

363,674

​

$

326,795

​

$

(9,055)

​

$

(9,974)

​

​

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 on 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 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 March 31, 2024 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 one-month, three-month or six-month term rate based on the secured overnight financing rate published by the Federal Reserve Bank of New York, 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. For borrowings under the Term Loan, we elected the three-month term rate, with applicable margin, which was 8.46% as of March 31, 2024.  At March 31, 2024, 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 0.21 to 1.0, 0.59 to 1.0 and 59.18 to 1.0, respectively, for the trailing twelve months ended March 31, 2024. We were in compliance with the covenants of the Credit Agreement as of March 31, 2024 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 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.

​

Accounts Receivable Securitization

​

Certain direct and indirect wholly owned subsidiaries of our Intermediate Partnership are party to a $90.0 million accounts receivable securitization facility ("Securitization Facility") which matures in January 2025. 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 $90.0 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 March 31, 2024, we had $11.7 million of letters of credit outstanding with $33.3 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.

​

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.

​

February 2024 Equipment Financing

​

On February 28, 2024, the Intermediate Partnership entered into an equipment financing arrangement accounted for as debt, wherein the Intermediate Partnership received $54.6 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 "February 2024 Equipment Financing"). The February 2024 Equipment Financing contains customary terms and events of default and provides for forty-eight monthly payments with an implicit interest rate of 8.29%, maturing on February 28, 2028. Upon maturity, the equipment will revert to the Intermediate Partnership.
v3.24.1.u1
INCOME TAXES
 3 Months Ended
Mar. 31, 2024
INCOME TAXES  
INCOME TAXES

9.INCOME TAXES

​

Components of income tax expense are as follows:

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

    

2023

    

​

​

(in thousands)

​

Current:

​

​

​

​

​

​

​

Federal

​

$

4,718

​

$

4,312

​

State

​

 

338

​

 

301

​

​

​

 

5,056

​

 

4,613

​

Deferred:

​

​

​

​

​

​

​

Federal

​

 

(127)

​

 

(331)

​

State

​

 

20

​

 

(41)

​

​

​

 

(107)

​

 

(372)

​

Income tax expense

​

$

4,949

​

$

4,241

​

​

The effective income tax rates for our income tax expense for the three months ended March 31, 2024 and 2023 are less than the federal statutory rate, primarily due to the portion of income not subject to income taxes.

​

Our 2020 through 2023 tax years remain open to examination by tax authorities, and certain lower-tier partnership income tax returns for the tax years ended December 31, 2020 and 2021 are being audited by the Internal Revenue Service.
v3.24.1.u1
VARIABLE INTEREST ENTITIES
 3 Months Ended
Mar. 31, 2024
VARIABLE INTEREST ENTITIES  
VARIABLE INTEREST ENTITIES

10.VARIABLE INTEREST ENTITIES

​

AllDale I & II and Cavalier Minerals

​

We own the general partner interests and, including the limited partner interests we hold through our ownership in Cavalier Minerals JV, LLC ("Cavalier Minerals"), approximately 97% of the limited partner interests in AllDale Minerals LP ("AllDale I") and AllDale Minerals II, LP ("AllDale II", and collectively with AllDale I, "AllDale I & II"). As the general partner of AllDale I & II, we are entitled to receive 20.0% of all distributions from AllDale I & II with the remaining 80.0% allocated to limited partners based upon ownership percentages.

​

Cavalier Minerals owns approximately 72% of the limited partner interests in AllDale I & II. We own the managing member interest and a 96% member interest in Cavalier Minerals. Bluegrass Minerals Management, LLC ("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. All members have recovered their investment and Bluegrass Minerals began receiving its profits interest distributions in late 2022.

​

We have concluded that AllDale I, AllDale II and Cavalier Minerals are variable interest entities ("VIEs") which we consolidate as the primary beneficiary because we have the power to direct the activities that most significantly impact the economic performance of AllDale I, AllDale II and Cavalier Minerals in addition to having substantial equity ownership.

​

Our share of Cavalier Minerals' investment in AllDale I & II is eliminated in consolidation and Bluegrass Minerals' investment in Cavalier Minerals is accounted for as noncontrolling ownership interest on our condensed consolidated balance sheets. Additionally, earnings attributable to Bluegrass Minerals are recognized as noncontrolling interest in our condensed consolidated statements of income.

​

The following table presents the carrying amounts and classification of AllDale I & II's assets and liabilities included in our condensed consolidated balance sheets:

​

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

​

​

2024

    

2023

​

Assets (liabilities):

    

(in thousands)

 

Cash and cash equivalents

​

$

4,229

​

$

4,690

​

Trade receivables

​

 

17,131

​

 

16,058

​

Total property, plant and equipment, net

​

 

385,580

​

 

389,767

​

Accounts payable

​

​

(202)

​

​

(175)

​

Accrued taxes other than income taxes

​

 

(280)

​

​

(958)

​

​

AllDale III

​

AllDale Minerals III, LP ("AllDale III") owns oil & gas mineral interests in areas around the oil & gas mineral interests we own. Alliance Minerals owns a 13.9% limited partner interest in AllDale III. Alliance Minerals' investment in AllDale III is subject to a 25% profits interest for the general partner that is 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.

​

We have concluded that AllDale III is a VIE that we do not consolidate because we are not the primary beneficiary and 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 are not the primary beneficiary of AllDale III because we do not have the power to direct the activities that most significantly impact AllDale III's economic performance. See Note 11 – Equity Investments for more information about the accounting for our investment in AllDale III.

​

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 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. As of March 31, 2024, we held approximately 16.7% of Francis' equity.

​

We have concluded that Francis is a VIE that we do not consolidate because we are not the primary beneficiary and Francis' 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 because we do not have the power to direct the activities that most significantly impact Francis's economic performance. See Note 11 – Equity Investments for more information about the accounting for our investment in Francis.

​

NGP ET IV

​

On June 2, 2022, we committed to purchase $25.0 million of limited partner interests in NGP Energy Transition, L.P. ("NGP ET 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 ET IV. As of March 31, 2023, we have funded $7.2 million of this commitment.  

​

We have concluded that NGP ET IV is a VIE that we do not consolidate because we are not the primary beneficiary and NGP ET IV 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 ET IV because we do not have the power to direct the activities that most significantly impact NGP ET IV's economic performance. See Note 11 – Equity Investments for more information about the accounting for our investment in NGP ET IV.
v3.24.1.u1
EQUITY INVESTMENTS
 3 Months Ended
Mar. 31, 2024
EQUITY INVESTMENTS  
EQUITY INVESTMENTS

11.           EQUITY INVESTMENTS

​

AllDale III

​

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 were as follows:

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

    

2024

    

2023

​

​

​

(in thousands)

​

Beginning balance

​

$

23,933

​

$

25,284

​

Equity method investment income

​

​

507

​

​

425

​

Distributions received

​

​

(882)

​

​

(1,014)

​

Ending balance

​

$

23,558

​

$

24,695

​

​

Francis

​

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 primarily 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 were as follows:

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

        

2023

    

​

​

(in thousands)

​

Beginning balance

​

$

16,487

​

$

20,000

​

Equity method investment loss

​

​

(1,097)

​

​

—

​

Ending balance

​

$

15,390

​

$

20,000

​

​

NGP ET IV

​

We account for our ownership interest in the income or loss of NGP ET IV as an equity method investment. The changes in our equity method investment in NGP ET IV were as follows:

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

        

2023

​

​

​

(in thousands)

​

Beginning balance

​

$

6,083

​

$

4,087

​

Contributions

​

​

625

​

​

540

​

Equity method investment income (loss)

​

​

37

​

​

(373)

​

Ending balance

​

$

6,745

​

$

4,254

​

​

Infinitum

​

During 2022, we purchased $42.0 million of Series D Preferred Stock ("Series D Preferred Stock") in Infinitum Electric, Inc. ("Infinitum"), a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators.  On September 8, 2023, we purchased $24.6 million of Series E Preferred Stock ("Series E Preferred Stock" and, together with the "Series D Preferred Stock," the "Infinitum Preferred Stock") in Infinitum.  The Infinitum Preferred Stock provides for non-cumulative dividends when and if declared by Infinitum's board of directors. Each share of

Infinitum Preferred Stock 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. Absent an observable price change, 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.

​

Ascend

​

On August 22, 2023, we purchased $25.0 million of Series D Preferred Stock (the "Ascend Preferred Stock") in Ascend Elements, Inc. ("Ascend"), a U.S.-based manufacturer and recycler of sustainable, engineered battery materials for electric vehicles. The Ascend Preferred Stock provides for non-cumulative dividends when and if declared by Ascend's board of directors. Each share is convertible, at any time, at our option, into shares of common stock of Ascend. We account for our ownership interest in Ascend as an equity investment without a readily determinable fair value.  Absent an observable price change, it is not practicable to estimate the fair value of our investment in Ascend 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.  

v3.24.1.u1
PARTNERS' CAPITAL
 3 Months Ended
Mar. 31, 2024
PARTNERS' CAPITAL  
PARTNERS' CAPITAL

12.PARTNERS' CAPITAL

​

Distributions

​

Distributions paid or declared during 2023 and 2024 were as follows:

​

​

​

​

​

​

​

​

​

Payment Date

    

Per Unit Cash Distribution

 

Total Cash Distribution

 

​

​

​

​

​

(in thousands)

​

​

​

​

​

​

​

​

​

February 14, 2023

​

$

0.7000

​

$

91,938

​

May 15, 2023

​

​

0.7000

​

​

90,930

​

August 14, 2023

​

​

0.7000

​

​

90,899

​

November 14, 2023

​

​

0.7000

​

​

90,812

​

Total

​

$

2.8000

​

$

364,579

​

​

​

​

​

​

​

​

​

February 14, 2024

​

$

0.7000

​

$

91,246

​

May 15, 2024 (1)

​

​

0.7000

​

​

​

​

Total

​

$

1.4000

​

$

91,246

​

(1)On April 26, 2024, we declared this quarterly distribution payable on May 15, 2024 to all unitholders of record as of May 8, 2024.  

​

Unit Repurchase Program

​

In January 2023, the board of directors of MGP authorized a $93.5 million increase to the unit repurchase program  authorizing us to be able to repurchase up to a total of $100.0 million of ARLP common units from that date. No units were repurchased during the three months ended March 31, 2024. During the three months ended March 31, 2023, we repurchased and retired 860,060 units at an average unit price of $21.17 for an aggregate purchase price of $18.2 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 three months ended March 31, 2024 and 2023:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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, 2024

​

127,125,437

​

$

1,896,027

​

$

—

​

$

(61,525)

​

$

24,095

​

$

1,858,597

​

Cumulative-effect adjustment (see Note 2)

​

—

​

​

6,232

​

​

—

​

​

—

​

​

—

​

​

6,232

​

Comprehensive income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

 

—

​

 

158,057

​

 

—

​

 

—

​

​

1,510

 

 

159,567

​

Actuarially determined long-term liability adjustments

 

—

​

 

—

​

 

—

​

 

923

​

 

—

 

 

923

​

Total comprehensive income

 

—

​

​

—

​

​

​

​

​

—

​

​

—

 

​

160,490

​

Settlement of deferred compensation plans

​

936,544

​

​

(13,292)

​

​

—

​

​

—

​

​

—

​

​

(13,292)

​

Purchase of units under unit repurchase program

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

Common unit-based compensation

 

—

​

 

2,604

​

​

—

​

​

—

​

​

—

​

​

2,604

​

Distributions on deferred common unit-based compensation

 

—

​

 

(2,261)

​

​

—

​

​

—

​

​

—

​

​

(2,261)

​

Distributions from consolidated company to noncontrolling interest

​

—

​

​

—

​

​

—

​

​

—

​

​

(1,981)

​

​

(1,981)

​

Distributions to Partners

 

—

​

​

(88,985)

​

​

—

​

​

—

​

​

—

​

​

(88,985)

​

Balance at March 31, 2024

 

128,061,981

​

$

1,958,382

​

$

—

​

$

(60,602)

​

$

23,624

​

$

1,921,404

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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 income

 

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

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

​

​

​

​

(7,251)

​

​

(64,999)

​

​

​

​

​

​

​

​

(72,250)

​

Cash retained by JC Resources in acquisition

​

—

​

​

—

​

​

(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

​

​
v3.24.1.u1
REVENUE FROM CONTRACTS WITH CUSTOMERS
 3 Months Ended
Mar. 31, 2024
REVENUE FROM CONTRACTS WITH CUSTOMERS  
REVENUE FROM CONTRACTS WITH CUSTOMERS

13.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 18 – Segment Information.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Coal Operations

​

Royalties

​

Other,

​

​

​

​

​

​

Illinois

    

​

    

​

​

​

    

Corporate and

    

​

​

​

​

    

Basin

    

Appalachia

    

Oil & Gas

    

Coal

    

Elimination

    

Consolidated

​

​

​

(in thousands)

​

Three Months Ended March 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Coal sales

​

$

370,630

​

$

191,249

​

$

—

​

$

—

​

$

—

​

$

561,879

​

Oil & gas royalties

​

​

—

​

​

—

​

​

37,030

​

​

—

​

​

—

​

​

37,030

​

Coal royalties

​

​

—

​

​

—

​

​

—

​

​

18,702

​

​

(18,702)

​

​

—

​

Transportation revenues

​

​

24,476

​

​

6,277

​

​

—

​

​

—

​

​

—

​

​

30,753

​

Other revenues

​

​

2,735

​

​

487

​

​

315

​

​

6

​

​

18,492

​

​

22,035

​

Total revenues

​

$

397,841

​

$

198,013

​

$

37,345

​

$

18,708

​

$

(210)

​

$

651,697

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended March 31, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Coal sales

​

$

336,910

​

$

241,874

​

$

—

​

$

—

​

$

—

​

$

578,784

​

Oil & gas royalties

​

​

—

​

​

—

​

​

34,497

​

​

—

​

​

—

​

​

34,497

​

Coal royalties

​

​

—

​

​

—

​

​

—

​

​

15,513

​

​

(15,513)

​

​

—

​

Transportation revenues

​

​

21,328

​

​

8,910

​

​

—

​

​

—

​

​

—

​

​

30,238

​

Other revenues

​

​

2,168

​

​

475

​

​

1,040

​

​

—

​

​

15,720

​

​

19,403

​

Total revenues

​

$

360,406

​

$

251,259

​

$

35,537

​

$

15,513

​

$

207

​

$

662,922

​

​

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 March 31, 2024 and disaggregated by segment and contract duration.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2027 and

​

​

​

    

2024

    

2025

    

2026

    

Thereafter

    

Total

​

​

(in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Illinois Basin Coal Operations coal revenues

​

$

951,283

​

$

525,584

​

$

280,755

​

$

291,000

​

$

2,048,622

Appalachia Coal Operations coal revenues

​

​

606,498

​

​

352,175

​

​

31,400

​

​

9,000

​

​

999,073

Total coal revenues (1)

​

$

1,557,781

​

$

877,759

​

$

312,155

​

$

300,000

​

$

3,047,695

(1) Coal revenues generally consists of consolidated revenues excluding our Oil & Gas Royalties segment as well as intercompany revenues from our Coal Royalties segment.
v3.24.1.u1
EARNINGS PER LIMITED PARTNER UNIT
 3 Months Ended
Mar. 31, 2024
EARNINGS PER LIMITED PARTNER UNIT  
EARNINGS PER LIMITED PARTNER UNIT

14.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 acquisition of oil & gas net royalty acres from JC Resources LP on February 22, 2023 (the "JC Resources Acquisition"), 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 were 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:

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

    

2024

    

2023

    

​

​

(in thousands, except per unit data)

​

​

​

​

​

​

​

​

​

Net income attributable to ARLP

​

$

158,057

​

$

191,185

​

Less:

​

​

​

​

​

​

​

General partner's interest in net income attributable to ARLP

​

 

—

​

 

(1,384)

​

​

​

​

​

​

​

​

​

Limited partners' interest in net income attributable to ARLP

​

 

158,057

​

 

189,801

​

​

​

​

​

​

​

​

​

Less:

​

​

​

​

​

​

​

Distributions to participating securities

​

 

(1,680)

​

 

(2,432)

​

Undistributed earnings attributable to participating securities

​

 

(1,448)

​

 

(2,979)

​

​

​

​

​

​

​

​

​

Net income attributable to ARLP available to limited partners

​

$

154,929

​

$

184,390

​

​

​

​

​

​

​

​

​

Weighted-average limited partner units outstanding – basic and diluted

​

 

127,671

​

 

127,289

​

​

​

​

​

​

​

​

​

Earnings per limited partner unit - basic and diluted (1)

​

$

1.21

​

$

1.45

​

(1)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 2,175 and 3,147 for the three months ended March 31, 2024 and 2023, respectively, were considered anti-dilutive under the treasury stock method.
v3.24.1.u1
WORKERS' COMPENSATION AND PNEUMOCONIOSIS
 3 Months Ended
Mar. 31, 2024
WORKERS' COMPENSATION AND PNEUMOCONIOSIS  
WORKERS' COMPENSATION AND PNEUMOCONIOSIS

15.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

 

​

​

March 31, 

​

​

​

2024

    

2023

​

​

​

​

​

​

​

​

​

Beginning balance

​

$

47,975

​

$

49,452

​

Changes in accruals

​

 

3,125

​

 

3,874

​

Payments

​

 

(4,048)

​

 

(3,859)

​

Interest accretion

​

 

509

​

 

550

​

Ending balance

​

$

47,561

​

$

50,017

​

​

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 from our insurance policy.  Our receivables for traumatic injury claims under this policy as of March 31, 2024 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

​

​

​

March 31, 

​

​

​

2024

    

2023

 

​

​

(in thousands)

​

Black lung benefits:

​

​

​

​

​

​

​

Service cost

​

$

861

​

$

669

 

Interest cost (1)

​

 

1,558

​

 

1,238

​

Net amortization (1)

​

 

839

​

 

346

​

Net periodic benefit cost

​

$

3,258

​

$

2,253

​

(1)Interest cost and net amortization are included in the Other income (expense) line item within our condensed consolidated statements of income.
v3.24.1.u1
COMMON UNIT-BASED COMPENSATION PLANS
 3 Months Ended
Mar. 31, 2024
COMMON UNIT-BASED COMPENSATION PLANS  
COMMON UNIT-BASED COMPENSATION PLANS

16.COMMON UNIT-BASED COMPENSATION PLANS

​

Long-Term Incentive Plan

​

A summary of non-vested LTIP grants of restricted units is as follows:

​

​

​

​

​

​

​

​

​

​

​

​

    

Number of units

 

Weighted average grant date fair value per unit

 

Intrinsic value

 

​

​

​

​

​

​

​

(in thousands)

​

​

​

​

​

​

​

​

​

​

​

Non-vested grants at January 1, 2024

​

2,710,344

​

$

10.91

​

​

51,405

​

Granted (1)

 

455,574

​

​

19.69

​

​

​

​

Vested (2)

 

(1,582,422)

​

 

6.53

​

​

​

​

Forfeited

 

(22,958)

​

 

15.31

​

​

​

​

Non-vested grants at March 31, 2024

 

1,560,538

​

 

17.86

​

​

31,289

​

(1)The restricted units granted during 2024 have certain minimum-value guarantees per unit, regardless of whether or not the awards vest.
(2)During the three months ended March 31, 2024, we issued 936,544 unrestricted common units to the LTIP participants.  The remaining vested units were settled in cash to satisfy tax withholding.

​

LTIP expense for grants of restricted units was $2.0 million and $2.3 million for the three months ended March 31, 2024 and 2023, respectively. The total obligation associated with LTIP grants of restricted units as of March 31, 2024 was $11.2 million and is included in the partners' capital Limited partners-common unitholders line item on our condensed consolidated balance sheets.  As of March 31, 2024, there was $16.7 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 1.6 years.

​

Supplemental Executive Retirement Plan and Directors' Deferred Compensation Plan

​

A summary of SERP and Directors' Deferred Compensation Plan activity 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, 2024

​

811,946

​

$

20.44

​

$

17,197

​

Granted

​

27,879

​

​

19.90

​

​

​

​

Phantom units outstanding as of March 31, 2024

 

839,825

​

 

20.42

​

​

16,838

​

​

Total SERP and Directors' Deferred Compensation Plan expense was $0.7 million and $0.6 million for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, the total obligation associated with the SERP and Directors' Deferred Compensation Plan was $17.1 million and is included in the partners' capital Limited partners-common unitholders line item on our condensed consolidated balance sheets.
v3.24.1.u1
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS
 3 Months Ended
Mar. 31, 2024
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS  
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

17.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 credit for each of the periods presented are as follows:

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

    

2023

    

​

​

(in thousands)

​

Interest cost

​

$

1,259

​

$

1,295

​

Expected return on plan assets

​

 

(1,765)

​

 

(1,598)

​

Amortization of prior service cost

​

​

47

​

​

47

​

Amortization of net loss

​

 

37

​

 

173

​

Net periodic benefit credit (1)

​

$

(422)

​

$

(83)

​

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

​

We do not expect to make material contributions to the Pension Plan during 2024.
v3.24.1.u1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2024
SEGMENT INFORMATION  
SEGMENT INFORMATION

18.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, and industrial users as well as royalty income from oil & gas mineral interests. 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, LLC's mining complex, (b) the Warrior Coal, LLC 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, LLC mining complex and (c) the MC Mining, LLC mining complex.

​

The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by Alliance Minerals through its consolidated subsidiaries as well as equity interests held in AllDale III (Note 11 – Equity Investments).

​

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 64% 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, the Matrix Group, our investments in Francis, Infinitum, NGP ET IV, and Ascend (see Note 11 – Equity Investments), Wildcat Insurance, LLC which assists the ARLP Partnership with its insurance requirements, AROP Funding and Alliance Finance (both discussed in Note 8 – Long-Term Debt) and our crypto-mining 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 March 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenues - Outside (1)

​

$

397,841

​

$

198,013

​

$

37,345

​

$

6

​

$

18,492

​

$

651,697

​

Revenues - Intercompany

​

​

—

​

​

—

​

​

—

​

​

18,702

​

​

(18,702)

​

​

—

​

Total revenues (1)

​

​

397,841

​

​

198,013

​

​

37,345

​

​

18,708

​

​

(210)

​

​

651,697

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Segment Adjusted EBITDA Expense (2)

​

 

233,087

​

​

117,502

​

​

4,940

​

​

6,264

​

​

(3,466)

​

 

358,327

​

Segment Adjusted EBITDA (3)

​

 

140,278

​

​

74,235

​

​

31,402

​

​

12,444

​

​

2,195

​

 

260,554

​

Total assets

​

 

1,019,209

​

​

520,093

​

​

783,309

​

​

320,217

​

​

322,959

​

 

2,965,787

​

Capital expenditures (4)

​

 

96,133

​

​

26,451

​

​

—

​

​

—

​

​

1,262

​

 

123,846

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended March 31, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenues - Outside (1)

​

$

360,406

​

$

251,259

​

$

35,537

​

$

—

​

$

15,720

​

$

662,922

​

Revenues - Intercompany

​

​

—

​

​

—

​

​

—

​

​

15,513

​

​

(15,513)

​

​

—

​

Total revenues (1)

​

​

360,406

​

​

251,259

​

​

35,537

​

​

15,513

​

​

207

​

​

662,922

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Segment Adjusted EBITDA Expense (2)

​

 

207,069

​

​

125,799

​

​

4,424

​

​

5,388

​

​

(3,384)

​

 

339,296

​

Segment Adjusted EBITDA (3)

​

 

132,008

​

​

116,550

​

​

30,045

​

​

10,125

​

​

3,219

​

 

291,947

​

Total assets

​

 

840,792

​

​

459,834

​

​

768,728

​

​

326,064

​

​

392,331

​

 

2,787,749

​

Capital expenditures (4)

​

 

61,982

​

​

32,505

​

​

2

​

​

400

​

​

585

​

 

95,474

​

(1)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 awarded digital assets received for our crypto-mining activities.

​

(2)Segment Adjusted EBITDA Expense (a non-GAAP financial measure) includes operating expenses, coal purchases, if applicable, and other income or expense as adjusted to remove certain items from operating expenses that we characterize as unrepresentative of our ongoing operations such as litigation accruals. 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 (excluding depreciation, depletion and amortization), the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA Expense:

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

    

2023

 

​

​

(in thousands)

​

Operating expenses (excluding depreciation, depletion and amortization)

​

$

363,859

​

$

338,723

​

Litigation expense accrual

​

​

(15,250)

​

 

—

​

Outside coal purchases

​

 

9,112

​

 

—

​

Other expense

​

​

606

​

​

573

​

Segment Adjusted EBITDA Expense

​

$

358,327

​

$

339,296

​

​

(3)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 modified for certain items that we characterize as unrepresentative of our ongoing operations, such as the change in fair value of digital assets and litigation accruals. 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 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

​

​

​

March 31, 

​

​

​

2024

    

2023

 

​

​

(in thousands)

​

Net income

​

$

159,567

​

$

192,678

​

Noncontrolling interest

​

​

(1,510)

​

​

(1,493)

​

Net income attributable to ARLP

​

$

158,057

​

$

191,185

​

General and administrative

​

 

22,129

​

 

21,085

​

Depreciation, depletion and amortization

​

 

65,549

​

 

65,550

​

Interest expense, net

​

 

6,473

​

 

9,886

​

Change in fair value of digital assets

​

​

(11,853)

​

​

—

​

Litigation expense accrual

​

​

15,250

​

​

—

​

Income tax expense

​

 

4,949

​

 

4,241

​

Consolidated Segment Adjusted EBITDA

​

$

260,554

​

$

291,947

​

​

(4)Capital expenditures exclude $72.3 million paid for the JC Resources Acquisition for the three months ended March 31, 2023 and $1.8 million and $2.8 million paid towards oil & gas reserve acquisitions for the three months ended March 31, 2024 and 2023 respectively. (See Note 3 – Acquisitions).
v3.24.1.u1
ORGANIZATION AND PRESENTATION (Policies)
 3 Months Ended
Mar. 31, 2024
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.
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 March 31, 2024 and December 31, 2023 and the results of our operations, comprehensive income and cash flows for the three months ended March 31, 2024 and 2023.  All intercompany transactions and accounts have been eliminated. Certain immaterial amounts in the prior quarter have been reclassified to conform to the current quarter presentation.

​

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, 2023.

​

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, 2024.

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.

Digital Assets

Digital Assets

​

We began our crypto-mining activities during the second half of 2020 as we started mining bitcoin as a pilot project to monetize already paid for, yet underutilized, electricity load.  We continue to periodically be awarded digital assets through our crypto-mining activities. The awards are accounted for as revenue and valued at the exchange quoted price at the time they are awarded. Beginning January 1, 2024, with our adoption of the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60) ("ASU 2023-08"), the digital assets we hold are subsequently remeasured to fair value based on the exchange quoted price as of the balance sheet date and included on our condensed consolidated balance sheets within the Digital assets line item.  The fair value of our digital assets are based on the exchange quoted price and represent a Level 1 input under the fair value hierarchy. The activity from remeasurement of digital assets to fair value is reflected in our condensed consolidated statements of income within the Change in fair value of digital assets line item. Digital assets sold for cash nearly immediately after they are awarded to us for mining activities are presented as cash flows from operating activities, while other sales are reflected as cash flows from investing activities in our condensed consolidated statements of cash flows. Our realized gains or losses are determined as the difference between the proceeds received when the digital assets are sold and our cost basis in the digital assets. Our cost basis is the value of the digital assets when they are awarded less any impairment recognized prior to our adoption of ASU 2023-08. We use a first-in, first-out methodology to assign costs to our digital assets in the calculation of our realized gains or losses. See Note 6 – Digital Assets for additional information.  

New Accounting Standards

New Accounting Standards Issued and Adopted

​

In December 2023, the FASB issued ASU 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60) ("ASU 2023-08"), which requires an entity to measure certain digital assets at fair value with changes in the fair value recognized in net income. In addition, the guidance requires additional disclosures related to digital assets once adopted.  We adopted ASU 2023-08, effective January 1, 2024, which resulted in a cumulative-effect adjustment to increase the opening balance of Partners' Capital of $6.2 million.  See Note 6 – Digital Assets for more information on our digital assets.

​

New Accounting Standards Issued and Not Yet Adopted

​

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 primarily requires enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker ("CODM"), the amount and composition of other segment items, and the title and position of the CODM. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. We are currently evaluating the impact of adopting ASU 2023-07, but do not expect it to have a material effect on our consolidated financial statements.

​

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 primarily requires enhanced disclosures to (1) disclose specific categories in the rate reconciliation, (2) disclose the amount of income taxes paid and expensed disaggregated by federal, state, and foreign taxes, with further disaggregation by individual jurisdictions if certain criteria are met, and (3) disclose income (loss) from continuing operations before income tax (benefit) disaggregated between domestic and foreign. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2023-09, but do not expect it to have a material effect on our consolidated financial statements.
v3.24.1.u1
INVENTORIES (Tables)
 3 Months Ended
Mar. 31, 2024
INVENTORIES  
Schedule of inventories

​

​

​

​

​

​

​

​

​

​

    

March 31, 

​

December 31, 

​

​

​

2024

    

2023

 

​

​

(in thousands)

​

​

​

​

​

​

​

​

​

Coal

​

$

88,108

​

$

56,549

​

Finished goods (net of reserve for obsolescence of $745 and $728, respectively)

​

​

4,174

​

​

3,908

​

Work in process

​

​

562

​

​

791

​

Raw materials

​

​

2,097

​

​

2,144

​

​

​

​

94,941

​

​

63,392

​

Supplies (net of reserve for obsolescence of $7,719 and $7,439, respectively)

​

 

67,256

​

 

64,164

​

Total inventories, net

​

$

162,197

​

$

127,556

​
v3.24.1.u1
DIGITAL ASSETS (Tables)
 3 Months Ended
Mar. 31, 2024
DIGITAL ASSETS  
Schedule of digital assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

​

​

Units

​

Cost Basis

​

Fair Value

​

Digital assets:

​

(in thousands, except unit data)

​

Bitcoin

​

​

425.10

​

$

12,769

​

$

30,325

​

Total

​

​

​

​

$

12,769

​

$

30,325

​
Schedule of digital assets fair value reconciliation

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

    

2024

​

Digital assets:

​

(in thousands)

​

Beginning balance

​

$

15,811

​

Additions

​

​

3,604

​

Dispositions

​

​

(943)

​

Change in fair value gains

​

​

11,853

​

Ending balance

​

$

30,325

​
v3.24.1.u1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2024
FAIR VALUE MEASUREMENTS  
Summary of fair value measurements within the hierarchy

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

​

December 31, 2023

​

​

    

Level 1

    

Level 2

    

Level 3

    

Level 1

    

Level 2

    

Level 3

 

​

​

(in thousands)

​

Long-term debt

​

$

—

​

$

440,659

​

$

—

​

$

—

​

$

347,116

​

$

—

​
v3.24.1.u1
LONG-TERM DEBT (Tables)
 3 Months Ended
Mar. 31, 2024
LONG-TERM DEBT  
Schedule of long-term debt

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Unamortized Discount and

​

​

​

Principal

​

Debt Issuance Costs

​

​

​

March 31, 

​

December 31, 

​

March 31, 

​

December 31, 

​

​

    

2024

    

2023

    

2024

    

2023

 

​

​

(in thousands)

​

Revolving credit facility

​

$

—

​

$

—

​

$

(7,478)

​

$

(8,118)

​

Term loan

​

 

56,250

​

 

60,938

​

 

(1,304)

​

 

(1,416)

​

Senior notes

​

 

284,607

​

 

284,607

​

 

(724)

​

 

(891)

​

Securitization facility

​

​

45,000

​

​

—

​

​

—

​

​

—

​

June 2020 equipment financing

​

​

1,028

​

​

2,039

​

​

—

​

​

—

​

February 2024 equipment financing

​

​

53,662

​

​

—

​

​

—

​

​

—

​

​

​

 

440,547

​

 

347,584

​

 

(9,506)

​

 

(10,425)

​

Less current maturities

​

 

(76,873)

​

 

(20,789)

​

 

451

​

 

451

​

Total long-term debt

​

$

363,674

​

$

326,795

​

$

(9,055)

​

$

(9,974)

​
v3.24.1.u1
INCOME TAXES (Tables)
 3 Months Ended
Mar. 31, 2024
INCOME TAXES  
Components of income tax expense

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

    

2023

    

​

​

(in thousands)

​

Current:

​

​

​

​

​

​

​

Federal

​

$

4,718

​

$

4,312

​

State

​

 

338

​

 

301

​

​

​

 

5,056

​

 

4,613

​

Deferred:

​

​

​

​

​

​

​

Federal

​

 

(127)

​

 

(331)

​

State

​

 

20

​

 

(41)

​

​

​

 

(107)

​

 

(372)

​

Income tax expense

​

$

4,949

​

$

4,241

​
v3.24.1.u1
VARIABLE INTEREST ENTITIES (Tables)
 3 Months Ended
Mar. 31, 2024
VARIABLE INTEREST ENTITIES  
Schedule of assets and liabilities

​

​

​

​

​

​

​

​

​

​

​

March 31, 

​

December 31, 

​

​

​

2024

    

2023

​

Assets (liabilities):

    

(in thousands)

 

Cash and cash equivalents

​

$

4,229

​

$

4,690

​

Trade receivables

​

 

17,131

​

 

16,058

​

Total property, plant and equipment, net

​

 

385,580

​

 

389,767

​

Accounts payable

​

​

(202)

​

​

(175)

​

Accrued taxes other than income taxes

​

 

(280)

​

​

(958)

​
v3.24.1.u1
EQUITY INVESTMENTS (Tables)
 3 Months Ended
Mar. 31, 2024
All Dale Minerals III  
Investments  
Schedule of changes in equity method investments

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

    

2024

    

2023

​

​

​

(in thousands)

​

Beginning balance

​

$

23,933

​

$

25,284

​

Equity method investment income

​

​

507

​

​

425

​

Distributions received

​

​

(882)

​

​

(1,014)

​

Ending balance

​

$

23,558

​

$

24,695

​
Francis Renewable Energy  
Investments  
Schedule of changes in equity method investments

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

        

2023

    

​

​

(in thousands)

​

Beginning balance

​

$

16,487

​

$

20,000

​

Equity method investment loss

​

​

(1,097)

​

​

—

​

Ending balance

​

$

15,390

​

$

20,000

​
NGP ET IV  
Investments  
Schedule of changes in equity method investments

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

        

2023

​

​

​

(in thousands)

​

Beginning balance

​

$

6,083

​

$

4,087

​

Contributions

​

​

625

​

​

540

​

Equity method investment income (loss)

​

​

37

​

​

(373)

​

Ending balance

​

$

6,745

​

$

4,254

​
v3.24.1.u1
PARTNERS' CAPITAL (Tables)
 3 Months Ended
Mar. 31, 2024
PARTNERS' CAPITAL  
Summary of quarterly per unit distribution paid

​

​

​

​

​

​

​

​

Payment Date

    

Per Unit Cash Distribution

 

Total Cash Distribution

 

​

​

​

​

​

(in thousands)

​

​

​

​

​

​

​

​

​

February 14, 2023

​

$

0.7000

​

$

91,938

​

May 15, 2023

​

​

0.7000

​

​

90,930

​

August 14, 2023

​

​

0.7000

​

​

90,899

​

November 14, 2023

​

​

0.7000

​

​

90,812

​

Total

​

$

2.8000

​

$

364,579

​

​

​

​

​

​

​

​

​

February 14, 2024

​

$

0.7000

​

$

91,246

​

May 15, 2024 (1)

​

​

0.7000

​

​

​

​

Total

​

$

1.4000

​

$

91,246

​

(1)On April 26, 2024, we declared this quarterly distribution payable on May 15, 2024 to all unitholders of record as of May 8, 2024.  
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, 2024

​

127,125,437

​

$

1,896,027

​

$

—

​

$

(61,525)

​

$

24,095

​

$

1,858,597

​

Cumulative-effect adjustment (see Note 2)

​

—

​

​

6,232

​

​

—

​

​

—

​

​

—

​

​

6,232

​

Comprehensive income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

 

—

​

 

158,057

​

 

—

​

 

—

​

​

1,510

 

 

159,567

​

Actuarially determined long-term liability adjustments

 

—

​

 

—

​

 

—

​

 

923

​

 

—

 

 

923

​

Total comprehensive income

 

—

​

​

—

​

​

​

​

​

—

​

​

—

 

​

160,490

​

Settlement of deferred compensation plans

​

936,544

​

​

(13,292)

​

​

—

​

​

—

​

​

—

​

​

(13,292)

​

Purchase of units under unit repurchase program

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

Common unit-based compensation

 

—

​

 

2,604

​

​

—

​

​

—

​

​

—

​

​

2,604

​

Distributions on deferred common unit-based compensation

 

—

​

 

(2,261)

​

​

—

​

​

—

​

​

—

​

​

(2,261)

​

Distributions from consolidated company to noncontrolling interest

​

—

​

​

—

​

​

—

​

​

—

​

​

(1,981)

​

​

(1,981)

​

Distributions to Partners

 

—

​

​

(88,985)

​

​

—

​

​

—

​

​

—

​

​

(88,985)

​

Balance at March 31, 2024

 

128,061,981

​

$

1,958,382

​

$

—

​

$

(60,602)

​

$

23,624

​

$

1,921,404

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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 income

 

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

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

​

​

​

​

(7,251)

​

​

(64,999)

​

​

​

​

​

​

​

​

(72,250)

​

Cash retained by JC Resources in acquisition

​

—

​

​

—

​

​

(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

​

​
v3.24.1.u1
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Coal sales

​

$

370,630

​

$

191,249

​

$

—

​

$

—

​

$

—

​

$

561,879

​

Oil & gas royalties

​

​

—

​

​

—

​

​

37,030

​

​

—

​

​

—

​

​

37,030

​

Coal royalties

​

​

—

​

​

—

​

​

—

​

​

18,702

​

​

(18,702)

​

​

—

​

Transportation revenues

​

​

24,476

​

​

6,277

​

​

—

​

​

—

​

​

—

​

​

30,753

​

Other revenues

​

​

2,735

​

​

487

​

​

315

​

​

6

​

​

18,492

​

​

22,035

​

Total revenues

​

$

397,841

​

$

198,013

​

$

37,345

​

$

18,708

​

$

(210)

​

$

651,697

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended March 31, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Coal sales

​

$

336,910

​

$

241,874

​

$

—

​

$

—

​

$

—

​

$

578,784

​

Oil & gas royalties

​

​

—

​

​

—

​

​

34,497

​

​

—

​

​

—

​

​

34,497

​

Coal royalties

​

​

—

​

​

—

​

​

—

​

​

15,513

​

​

(15,513)

​

​

—

​

Transportation revenues

​

​

21,328

​

​

8,910

​

​

—

​

​

—

​

​

—

​

​

30,238

​

Other revenues

​

​

2,168

​

​

475

​

​

1,040

​

​

—

​

​

15,720

​

​

19,403

​

Total revenues

​

$

360,406

​

$

251,259

​

$

35,537

​

$

15,513

​

$

207

​

$

662,922

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2027 and

​

​

​

    

2024

    

2025

    

2026

    

Thereafter

    

Total

​

​

(in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Illinois Basin Coal Operations coal revenues

​

$

951,283

​

$

525,584

​

$

280,755

​

$

291,000

​

$

2,048,622

Appalachia Coal Operations coal revenues

​

​

606,498

​

​

352,175

​

​

31,400

​

​

9,000

​

​

999,073

Total coal revenues (1)

​

$

1,557,781

​

$

877,759

​

$

312,155

​

$

300,000

​

$

3,047,695

(1) Coal revenues generally consists of consolidated revenues excluding our Oil & Gas Royalties segment as well as intercompany revenues from our Coal Royalties segment.
v3.24.1.u1
EARNINGS PER LIMITED PARTNER UNIT (Tables)
 3 Months Ended
Mar. 31, 2024
EARNINGS PER LIMITED PARTNER UNIT  
Reconciliation of net income (loss) and EPU calculations

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

​

    

2024

    

2023

    

​

​

(in thousands, except per unit data)

​

​

​

​

​

​

​

​

​

Net income attributable to ARLP

​

$

158,057

​

$

191,185

​

Less:

​

​

​

​

​

​

​

General partner's interest in net income attributable to ARLP

​

 

—

​

 

(1,384)

​

​

​

​

​

​

​

​

​

Limited partners' interest in net income attributable to ARLP

​

 

158,057

​

 

189,801

​

​

​

​

​

​

​

​

​

Less:

​

​

​

​

​

​

​

Distributions to participating securities

​

 

(1,680)

​

 

(2,432)

​

Undistributed earnings attributable to participating securities

​

 

(1,448)

​

 

(2,979)

​

​

​

​

​

​

​

​

​

Net income attributable to ARLP available to limited partners

​

$

154,929

​

$

184,390

​

​

​

​

​

​

​

​

​

Weighted-average limited partner units outstanding – basic and diluted

​

 

127,671

​

 

127,289

​

​

​

​

​

​

​

​

​

Earnings per limited partner unit - basic and diluted (1)

​

$

1.21

​

$

1.45

​

(1)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 2,175 and 3,147 for the three months ended March 31, 2024 and 2023, respectively, were considered anti-dilutive under the treasury stock method.
v3.24.1.u1
WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables)
 3 Months Ended
Mar. 31, 2024
Black lung benefits:  
Reconciliation of changes in workers' compensation liability

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

 

​

​

March 31, 

​

​

​

2024

    

2023

​

​

​

​

​

​

​

​

​

Beginning balance

​

$

47,975

​

$

49,452

​

Changes in accruals

​

 

3,125

​

 

3,874

​

Payments

​

 

(4,048)

​

 

(3,859)

​

Interest accretion

​

 

509

​

 

550

​

Ending balance

​

$

47,561

​

$

50,017

​
Pneumoconiosis benefits  
Black lung benefits:  
Components of net periodic benefit cost

​

​

​

​

​

​

​

​

​

    

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

    

2023

 

​

​

(in thousands)

​

Black lung benefits:

​

​

​

​

​

​

​

Service cost

​

$

861

​

$

669

 

Interest cost (1)

​

 

1,558

​

 

1,238

​

Net amortization (1)

​

 

839

​

 

346

​

Net periodic benefit cost

​

$

3,258

​

$

2,253

​

(1)Interest cost and net amortization are included in the Other income (expense) line item within our condensed consolidated statements of income.
v3.24.1.u1
COMMON UNIT-BASED COMPENSATION PLANS (Tables)
 3 Months Ended
Mar. 31, 2024
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, 2024

​

2,710,344

​

$

10.91

​

​

51,405

​

Granted (1)

 

455,574

​

​

19.69

​

​

​

​

Vested (2)

 

(1,582,422)

​

 

6.53

​

​

​

​

Forfeited

 

(22,958)

​

 

15.31

​

​

​

​

Non-vested grants at March 31, 2024

 

1,560,538

​

 

17.86

​

​

31,289

​

(1)The restricted units granted during 2024 have certain minimum-value guarantees per unit, regardless of whether or not the awards vest.
(2)During the three months ended March 31, 2024, we issued 936,544 unrestricted common units to the LTIP participants.  The remaining vested units were settled in cash to satisfy tax withholding.
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, 2024

​

811,946

​

$

20.44

​

$

17,197

​

Granted

​

27,879

​

​

19.90

​

​

​

​

Phantom units outstanding as of March 31, 2024

 

839,825

​

 

20.42

​

​

16,838

​

​
v3.24.1.u1
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Tables)
 3 Months Ended
Mar. 31, 2024
Defined benefit pension plan  
Employee Benefit Plans  
Components of net periodic benefit cost

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

    

2023

    

​

​

(in thousands)

​

Interest cost

​

$

1,259

​

$

1,295

​

Expected return on plan assets

​

 

(1,765)

​

 

(1,598)

​

Amortization of prior service cost

​

​

47

​

​

47

​

Amortization of net loss

​

 

37

​

 

173

​

Net periodic benefit credit (1)

​

$

(422)

​

$

(83)

​

(1)Net periodic benefit credit for the Pension Plan is included in the Other expense line item within our condensed consolidated statements of income.
v3.24.1.u1
SEGMENT INFORMATION (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenues - Outside (1)

​

$

397,841

​

$

198,013

​

$

37,345

​

$

6

​

$

18,492

​

$

651,697

​

Revenues - Intercompany

​

​

—

​

​

—

​

​

—

​

​

18,702

​

​

(18,702)

​

​

—

​

Total revenues (1)

​

​

397,841

​

​

198,013

​

​

37,345

​

​

18,708

​

​

(210)

​

​

651,697

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Segment Adjusted EBITDA Expense (2)

​

 

233,087

​

​

117,502

​

​

4,940

​

​

6,264

​

​

(3,466)

​

 

358,327

​

Segment Adjusted EBITDA (3)

​

 

140,278

​

​

74,235

​

​

31,402

​

​

12,444

​

​

2,195

​

 

260,554

​

Total assets

​

 

1,019,209

​

​

520,093

​

​

783,309

​

​

320,217

​

​

322,959

​

 

2,965,787

​

Capital expenditures (4)

​

 

96,133

​

​

26,451

​

​

—

​

​

—

​

​

1,262

​

 

123,846

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended March 31, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenues - Outside (1)

​

$

360,406

​

$

251,259

​

$

35,537

​

$

—

​

$

15,720

​

$

662,922

​

Revenues - Intercompany

​

​

—

​

​

—

​

​

—

​

​

15,513

​

​

(15,513)

​

​

—

​

Total revenues (1)

​

​

360,406

​

​

251,259

​

​

35,537

​

​

15,513

​

​

207

​

​

662,922

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Segment Adjusted EBITDA Expense (2)

​

 

207,069

​

​

125,799

​

​

4,424

​

​

5,388

​

​

(3,384)

​

 

339,296

​

Segment Adjusted EBITDA (3)

​

 

132,008

​

​

116,550

​

​

30,045

​

​

10,125

​

​

3,219

​

 

291,947

​

Total assets

​

 

840,792

​

​

459,834

​

​

768,728

​

​

326,064

​

​

392,331

​

 

2,787,749

​

Capital expenditures (4)

​

 

61,982

​

​

32,505

​

​

2

​

​

400

​

​

585

​

 

95,474

​

(1)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 awarded digital assets received for our crypto-mining activities.

​

(2)Segment Adjusted EBITDA Expense (a non-GAAP financial measure) includes operating expenses, coal purchases, if applicable, and other income or expense as adjusted to remove certain items from operating expenses that we characterize as unrepresentative of our ongoing operations such as litigation accruals. 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 (excluding depreciation, depletion and amortization), the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA Expense:

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

    

2023

 

​

​

(in thousands)

​

Operating expenses (excluding depreciation, depletion and amortization)

​

$

363,859

​

$

338,723

​

Litigation expense accrual

​

​

(15,250)

​

 

—

​

Outside coal purchases

​

 

9,112

​

 

—

​

Other expense

​

​

606

​

​

573

​

Segment Adjusted EBITDA Expense

​

$

358,327

​

$

339,296

​

​

(3)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 modified for certain items that we characterize as unrepresentative of our ongoing operations, such as the change in fair value of digital assets and litigation accruals. 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 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

​

​

​

March 31, 

​

​

​

2024

    

2023

 

​

​

(in thousands)

​

Net income

​

$

159,567

​

$

192,678

​

Noncontrolling interest

​

​

(1,510)

​

​

(1,493)

​

Net income attributable to ARLP

​

$

158,057

​

$

191,185

​

General and administrative

​

 

22,129

​

 

21,085

​

Depreciation, depletion and amortization

​

 

65,549

​

 

65,550

​

Interest expense, net

​

 

6,473

​

 

9,886

​

Change in fair value of digital assets

​

​

(11,853)

​

​

—

​

Litigation expense accrual

​

​

15,250

​

​

—

​

Income tax expense

​

 

4,949

​

 

4,241

​

Consolidated Segment Adjusted EBITDA

​

$

260,554

​

$

291,947

​

​

(4)Capital expenditures exclude $72.3 million paid for the JC Resources Acquisition for the three months ended March 31, 2023 and $1.8 million and $2.8 million paid towards oil & gas reserve acquisitions for the three months ended March 31, 2024 and 2023 respectively. (See Note 3 – Acquisitions).
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

    

2023

 

​

​

(in thousands)

​

Operating expenses (excluding depreciation, depletion and amortization)

​

$

363,859

​

$

338,723

​

Litigation expense accrual

​

​

(15,250)

​

 

—

​

Outside coal purchases

​

 

9,112

​

 

—

​

Other expense

​

​

606

​

​

573

​

Segment Adjusted EBITDA Expense

​

$

358,327

​

$

339,296

​
Reconciliation of consolidated Segment Adjusted EBITDA to net income

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

​

​

​

March 31, 

​

​

​

2024

    

2023

 

​

​

(in thousands)

​

Net income

​

$

159,567

​

$

192,678

​

Noncontrolling interest

​

​

(1,510)

​

​

(1,493)

​

Net income attributable to ARLP

​

$

158,057

​

$

191,185

​

General and administrative

​

 

22,129

​

 

21,085

​

Depreciation, depletion and amortization

​

 

65,549

​

 

65,550

​

Interest expense, net

​

 

6,473

​

 

9,886

​

Change in fair value of digital assets

​

​

(11,853)

​

​

—

​

Litigation expense accrual

​

​

15,250

​

​

—

​

Income tax expense

​

 

4,949

​

 

4,241

​

Consolidated Segment Adjusted EBITDA

​

$

260,554

​

$

291,947

​
v3.24.1.u1
NEW ACCOUNTING STANDARDS (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
New accounting pronouncements    
Fair value digital asset $ 30,325 $ 15,811
ASU 2023-08 - Crypto Assets | Cumulative Effect, Period of Adoption, Adjustment    
New accounting pronouncements    
Fair value digital asset   $ 6,200
v3.24.1.u1
ACQUISITIONS - Asset acquisition (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Feb. 19, 2024
Jan. 27, 2023
Acquisition Agreement      
Asset acquisition      
Funding commitment   $ 25.0 $ 35.0
Mineral interests in proved properties $ 0.3    
Mineral interests in unproved properties 0.1    
Miscellaneous Acquisitions      
Asset acquisition      
Mineral interests in proved properties 0.3    
Mineral interests in unproved properties $ 1.2    
v3.24.1.u1
CONTINGENCIES (Details) - USD ($)
$ in Millions
 1 Months Ended
Apr. 30, 2024
Mar. 31, 2024
CONTINGENCIES    
Settlement awarded to other party $ 15.3  
Settlement accrual   $ 15.3
v3.24.1.u1
INVENTORIES (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Inventory    
Coal $ 88,108 $ 56,549
Finished goods (net of reserve for obsolescence) 4,174 3,908
Work in process 562 791
Raw materials 2,097 2,144
Total operating inventories, net 94,941 63,392
Supplies (net of reserve for obsolescence) 67,256 64,164
Total inventories, net 162,197 127,556
Reduce inventory carrying value to market 7,300  
Manufactured goods    
Inventory    
Reserve for obsolescence 745 728
Supplies    
Inventory    
Reserve for obsolescence $ 7,719 $ 7,439
v3.24.1.u1
DIGITAL ASSETS - Balance sheet (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
instrument
Dec. 31, 2023
USD ($)
DIGITAL ASSETS    
Units | instrument 425  
Cost Basis $ 12,769  
Fair Value $ 30,325 $ 15,811
v3.24.1.u1
DIGITAL ASSETS - Reconciliation (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
Digital assets:  
Digital asset, Beginning Balance $ 15,811
Additions 3,604
Dispositions (943)
Change in fair value gains 11,853
Digital asset, Ending Balance 30,325
Realized gains on disposal of digital assets $ 600
v3.24.1.u1
DIGITAL ASSETS - Accounting standard adoption (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
New accounting pronouncements    
Fair value digital asset $ 30,325 $ 15,811
ASU 2023-08 - Crypto Assets | Cumulative Effect, Period of Adoption, Adjustment    
New accounting pronouncements    
Fair value digital asset   $ 6,200
v3.24.1.u1
FAIR VALUE MEASUREMENTS (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Estimated fair value | Significant Observable Inputs (Level 2)    
FAIR VALUE MEASUREMENTS    
Long-term debt $ 440,659 $ 347,116
v3.24.1.u1
LONG-TERM DEBT - Components (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Principal    
Aggregate maturities of long-term debt $ 440,547 $ 347,584
Less current maturities (76,873) (20,789)
Total long-term debt 363,674 326,795
Unamortized Discount and Debt Issuance Costs    
Unamortized debt issuance costs including current and non-current (9,506) (10,425)
Less current maturities 451 451
Total unamortized debt issuance costs (9,055) (9,974)
Revolving credit facility    
Unamortized Discount and Debt Issuance Costs    
Unamortized debt issuance costs including current and non-current (7,478) (8,118)
Term loan    
Principal    
Aggregate maturities of long-term debt 56,250 60,938
Unamortized Discount and Debt Issuance Costs    
Unamortized debt issuance costs including current and non-current (1,304) (1,416)
Senior notes    
Principal    
Aggregate maturities of long-term debt 284,607 284,607
Unamortized Discount and Debt Issuance Costs    
Unamortized debt issuance costs including current and non-current (724) (891)
Securitization facility    
Principal    
Aggregate maturities of long-term debt 45,000  
June 2020 equipment financing    
Principal    
Aggregate maturities of long-term debt 1,028 $ 2,039
February 2024 equipment financing    
Principal    
Aggregate maturities of long-term debt $ 53,662  
v3.24.1.u1
LONG-TERM DEBT - Credit Facility (Details) - USD ($)
$ in Millions
 3 Months Ended
Jan. 13, 2023
Mar. 31, 2024
Credit Agreement    
Long-Term Debt    
Maximum borrowing capacity $ 425.0  
Minimum liquidity to extend maturity $ 200.0  
Letters of credit outstanding   $ 41.0
Debt available for borrowing   $ 384.0
Annual commitment fee percentage, undrawn portion   0.50%
ARLP debt arrangements requirements, period over which the ratios are required to be maintained   12 months
Credit Agreement | Maximum    
Long-Term Debt    
Interest coverage ratio 3.0  
Actual cash flow to interest expense ratio for trailing twelve months   59.18
Credit Agreement | Minimum    
Long-Term Debt    
Interest coverage ratio 1.0  
Actual cash flow to interest expense ratio for trailing twelve months   1.0
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 | Maximum    
Long-Term Debt    
ARLP debt arrangements requirements, debt to cash flow ratio 1.5 1.0
Credit Agreement | Alliance Coal | Minimum    
Long-Term Debt    
ARLP debt arrangements requirements, debt to cash flow ratio 1.0  
Actual debt to cash flow ratio for trailing twelve months   0.21
Credit Agreement | Alliance Coal and Intermediate Partnership | Maximum    
Long-Term Debt    
ARLP debt arrangements requirements, debt to cash flow ratio 2.5  
Actual debt to cash flow ratio for trailing twelve months   1.0
Credit Agreement | Alliance Coal and Intermediate Partnership | Minimum    
Long-Term Debt    
ARLP debt arrangements requirements, debt to cash flow ratio 1.0  
Actual debt to cash flow ratio for trailing twelve months   0.59
Letters of credit subfacility    
Long-Term Debt    
Maximum borrowing capacity $ 425.0  
Swingline subfacility    
Long-Term Debt    
Maximum borrowing capacity 15.0  
Term loan    
Long-Term Debt    
Maximum borrowing term loan $ 75.0  
Interest rate (as a percent) 6.25%  
Effective interest rate (as a percent)   8.46%
v3.24.1.u1
LONG-TERM DEBT - 2025 Senior Notes (Details) - Senior notes due 2025
$ in Millions
Apr. 24, 2017
USD ($)
Issuance of Senior Notes  
Principal amount $ 400.0
Term 8 years
Interest rate (as a percent) 7.50%
v3.24.1.u1
LONG-TERM DEBT - Securitization Facility (Details) - Securitization facility
$ in Millions
Mar. 31, 2024
USD ($)
Long-Term Debt  
Maximum borrowing capacity $ 90.0
Letters of credit outstanding 11.7
Debt available for borrowing $ 33.3
v3.24.1.u1
LONG-TERM DEBT - Equipment financing and other (Details) - USD ($)
$ in Millions
Feb. 28, 2024
Jun. 05, 2020
June 2020 equipment financing    
Long-Term Debt    
Principal amount   $ 14.7
Term   48 months
Effective interest rate (as a percent)   6.10%
February 2024 equipment financing    
Long-Term Debt    
Principal amount $ 54.6  
Term 48 months  
Effective interest rate (as a percent) 8.29%  
v3.24.1.u1
INCOME TAXES - Components (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Current:    
Federal $ 4,718 $ 4,312
State 338 301
Total current income tax expense 5,056 4,613
Deferred:    
Federal (127) (331)
State 20 (41)
Total deferred income tax expense (107) (372)
Income tax expense $ 4,949 $ 4,241
v3.24.1.u1
VARIABLE INTEREST ENTITIES - AllDale (Detail)
 3 Months Ended
Mar. 31, 2024
AllDale I & II | Cavalier Minerals  
Equity Investments  
Ownership percentage by limited partners 72.00%
Cavalier Minerals  
Equity Investments  
Ownership interest in VIE (as a percent) 96.00%
Cavalier Minerals | Bluegrass Minerals  
Equity Investments  
Distributions to be received (as a percent) 25.00%
Noncontrolling ownership interest (as a percent) 4.00%
All Dale Minerals III  
Equity Investments  
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%
Variable Interest Entity, Primary Beneficiary | AllDale I and II | AllDale I & II  
Equity Investments  
Ownership percentage by limited partners 97.00%
Variable Interest Entity, Primary Beneficiary | AllDale I and II | General Partners' Capital  
Equity Investments  
Distributions to be received (as a percent) 20.00%
Variable Interest Entity, Primary Beneficiary | AllDale I and II | Limited Partners' Capital  
Equity Investments  
Distributions to be received (as a percent) 80.00%
Variable Interest Entity, Not Primary Beneficiary | All Dale Minerals III | All Dale Minerals III  
Equity Investments  
Ownership percentage by limited partners 13.90%
v3.24.1.u1
VARIABLE INTEREST ENTITIES - Bal Sheet (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Balance Sheet Related Disclosures    
Cash and cash equivalents $ 133,957 $ 59,813
Trade receivables 272,191 282,622
Total property, plant and equipment, net 2,079,659 2,022,663
Accounts payable (107,600) (108,269)
Accrued taxes other than income taxes (21,367) (21,007)
AllDale I and II    
Balance Sheet Related Disclosures    
Cash and cash equivalents 4,229 4,690
Trade receivables 17,131 16,058
Total property, plant and equipment, net 385,580 389,767
Accounts payable (202) (175)
Accrued taxes other than income taxes $ (280) $ (958)
v3.24.1.u1
VARIABLE INTEREST ENTITIES - Investments (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 02, 2022
Apr. 05, 2022
Mar. 31, 2024
Mar. 31, 2023
Equity Investments        
Contributions to equity method investments     $ 625 $ 540
Francis Renewable Energy        
Equity Investments        
Contributions to equity method investments   $ 20,000    
Francis Renewable Energy | Francis Renewable Energy        
Equity Investments        
Ownership percentage by limited partners     16.70%  
NGP ET IV        
Equity Investments        
Contributions to equity method investments     $ 625 $ 540
Funding commitment $ 25,000      
Contributions to investee to date     $ 7,200  
NGP ET IV | NGP ET IV        
Equity Investments        
Ownership percentage by limited partners 3.60%      
v3.24.1.u1
EQUITY INVESTMENTS - Equity method (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 05, 2022
Mar. 31, 2024
Mar. 31, 2023
Equity Investments      
Beginning balance   $ 46,503  
Contributions   625 $ 540
Equity method investment income (loss)   (553) 52
Other expense   (606) (573)
Ending balance   45,693  
All Dale Minerals III      
Equity Investments      
Beginning balance   23,933 25,284
Equity method investment income (loss)   507 425
Distributions received   (882) (1,014)
Ending balance   23,558 24,695
Francis Renewable Energy      
Equity Investments      
Beginning balance   16,487 20,000
Contributions $ 20,000    
Equity method investment income (loss)   (1,097)  
Ending balance   15,390 20,000
NGP ET IV      
Equity Investments      
Beginning balance   6,083 4,087
Contributions   625 540
Equity method investment income (loss)   37 (373)
Ending balance   $ 6,745 $ 4,254
v3.24.1.u1
EQUITY INVESTMENTS - Non-equity method (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 08, 2023
Dec. 31, 2022
Mar. 31, 2024
Dec. 31, 2023
Aug. 22, 2023
Equity securities without readily determinable fair value          
Equity securities     $ 92,541 $ 92,541  
Infinitum Electric          
Equity securities without readily determinable fair value          
Contributions $ 24,600 $ 42,000      
Ascend          
Equity securities without readily determinable fair value          
Equity securities         $ 25,000
v3.24.1.u1
PARTNERS' CAPITAL - Distributions (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
May 15, 2024
Feb. 14, 2024
Nov. 14, 2023
Aug. 14, 2023
May 15, 2023
Feb. 14, 2023
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
PARTNERS' CAPITAL                  
Quarterly distribution paid (in dollars per unit) $ 0.7000 $ 0.7000 $ 0.7000 $ 0.7000 $ 0.7000 $ 0.7000 $ 1.4000   $ 2.8000
Total Cash Distribution   $ 91,246 $ 90,812 $ 90,899 $ 90,930 $ 91,938 $ 91,246 $ 91,938 $ 364,579
v3.24.1.u1
PARTNERS' CAPITAL - Narrative (Details) - Limited Partners' Capital - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 3 Months Ended
Jan. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Partners' capital      
Increase in authorization amount $ 93.5    
Repurchase and retire authorization $ 100.0    
Number of units retired   0 860,060
Treasury units retired     $ 18.2
Repurchase price (in dollars per unit)     $ 21.17
Aggregate      
Partners' capital      
Number of units retired   6,390,446  
Treasury units retired   $ 112.9  
Repurchase price (in dollars per unit)   $ 17.67  
v3.24.1.u1
PARTNERS' CAPITAL - Change (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Increase (decrease) in Partners' Capital    
Balance at beginning of period $ 1,858,597 $ 1,708,026
Balance at beginning of period (in units) 127,125,437  
Comprehensive income (loss):    
Net income $ 159,567 192,678
Actuarially determined long-term liability adjustments 923 565
COMPREHENSIVE INCOME 160,490 193,243
Settlement of deferred compensation plans (13,292) (9,320)
Purchase of units under unit repurchase program   (18,209)
Common unit-based compensation 2,604 2,830
Distributions on deferred common unit-based compensation (2,261) (2,901)
Distributions from consolidated company to noncontrolling interest (1,981) (2,288)
JC Resources acquisition   (72,250)
Cash retained by JC Resources in acquisition   (2,933)
Distributions to Partners (88,985) (89,037)
Balance at end of period $ 1,921,404 1,707,161
Balance at end of period (in units) 128,061,981  
Cumulative Effect, Period of Adoption, Adjustment    
Increase (decrease) in Partners' Capital    
Balance at beginning of period $ 6,232  
Accumulated Other Comprehensive Income (Loss)    
Increase (decrease) in Partners' Capital    
Balance at beginning of period (61,525) (41,054)
Comprehensive income (loss):    
Actuarially determined long-term liability adjustments 923 565
Balance at end of period (60,602) (40,489)
Noncontrolling Interest    
Increase (decrease) in Partners' Capital    
Balance at beginning of period 24,095 26,507
Comprehensive income (loss):    
Net income 1,510 1,493
Distributions from consolidated company to noncontrolling interest (1,981) (2,288)
Balance at end of period 23,624 25,712
Limited Partners' Capital    
Increase (decrease) in Partners' Capital    
Balance at beginning of period $ 1,896,027 $ 1,656,025
Balance at beginning of period (in units) 127,125,437 127,195,219
Comprehensive income (loss):    
Net income $ 158,057 $ 189,801
Settlement of deferred compensation plans $ (13,292) $ (9,320)
Settlement of deferred common unit- based compensation plans (in units) 936,544 860,060
Purchase of units under unit repurchase program   $ (18,209)
Purchase of units under unit repurchase program (in units)   (860,060)
Common unit-based compensation $ 2,604 $ 2,830
Distributions on deferred common unit-based compensation (2,261) (2,901)
JC Resources acquisition   (7,251)
Distributions to Partners (88,985) (89,037)
Balance at end of period $ 1,958,382 $ 1,721,938
Balance at end of period (in units) 128,061,981 127,195,219
Limited Partners' Capital | Cumulative Effect, Period of Adoption, Adjustment    
Increase (decrease) in Partners' Capital    
Balance at beginning of period $ 6,232  
General Partners' Capital    
Increase (decrease) in Partners' Capital    
Balance at beginning of period   $ 66,548
Comprehensive income (loss):    
Net income   1,384
JC Resources acquisition   (64,999)
Cash retained by JC Resources in acquisition   $ (2,933)
v3.24.1.u1
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Disaggregation of revenues    
Revenues $ 651,697 $ 662,922
Coal sales    
Disaggregation of revenues    
Revenues 561,879 578,784
Oil & gas royalties    
Disaggregation of revenues    
Revenues 37,030 34,497
Transportation    
Disaggregation of revenues    
Revenues 30,753 30,238
Other revenues    
Disaggregation of revenues    
Revenues 22,035 19,403
Coal Royalties    
Disaggregation of revenues    
Revenues 18,708 15,513
Operating segments | Illinois Basin Coal    
Disaggregation of revenues    
Revenues 397,841 360,406
Operating segments | Illinois Basin Coal | Coal sales    
Disaggregation of revenues    
Revenues 370,630 336,910
Operating segments | Illinois Basin Coal | Transportation    
Disaggregation of revenues    
Revenues 24,476 21,328
Operating segments | Illinois Basin Coal | Other revenues    
Disaggregation of revenues    
Revenues 2,735 2,168
Operating segments | Appalachia Coal    
Disaggregation of revenues    
Revenues 198,013 251,259
Operating segments | Appalachia Coal | Coal sales    
Disaggregation of revenues    
Revenues 191,249 241,874
Operating segments | Appalachia Coal | Transportation    
Disaggregation of revenues    
Revenues 6,277 8,910
Operating segments | Appalachia Coal | Other revenues    
Disaggregation of revenues    
Revenues 487 475
Operating segments | Oil & Gas Royalties    
Disaggregation of revenues    
Revenues 37,345 35,537
Operating segments | Oil & Gas Royalties | Oil & gas royalties    
Disaggregation of revenues    
Revenues 37,030 34,497
Operating segments | Oil & Gas Royalties | Other revenues    
Disaggregation of revenues    
Revenues 315 1,040
Operating segments | Coal Royalties    
Disaggregation of revenues    
Revenues 6  
Operating segments | Coal Royalties | Coal royalties    
Disaggregation of revenues    
Revenues 18,702 15,513
Operating segments | Coal Royalties | Other revenues    
Disaggregation of revenues    
Revenues 6  
Other, Corporate and Elimination    
Disaggregation of revenues    
Revenues (210) 207
Other, Corporate and Elimination | Coal royalties    
Disaggregation of revenues    
Revenues (18,702) (15,513)
Other, Corporate and Elimination | Other revenues    
Disaggregation of revenues    
Revenues 18,492 15,720
Elimination    
Disaggregation of revenues    
Revenues (18,702) (15,513)
Elimination | Coal Royalties    
Disaggregation of revenues    
Revenues $ 18,702 $ 15,513
v3.24.1.u1
REVENUE FROM CONTRACTS WITH CUSTOMERS - Supply contracts (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Performance obligations unsatisfied or partially unsatisfied  
Total $ 3,047,695
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01  
Performance obligations unsatisfied or partially unsatisfied  
Total $ 1,557,781
Expected timing of satisfaction period 9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Performance obligations unsatisfied or partially unsatisfied  
Total $ 877,759
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 $ 312,155
Expected timing of satisfaction period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Performance obligations unsatisfied or partially unsatisfied  
Total $ 300,000
Expected timing of satisfaction period 1 year
Illinois Basin Coal  
Performance obligations unsatisfied or partially unsatisfied  
Total $ 2,048,622
Illinois Basin Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01  
Performance obligations unsatisfied or partially unsatisfied  
Total $ 951,283
Expected timing of satisfaction period 9 months
Illinois Basin Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Performance obligations unsatisfied or partially unsatisfied  
Total $ 525,584
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 $ 280,755
Expected timing of satisfaction period 1 year
Illinois Basin Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Performance obligations unsatisfied or partially unsatisfied  
Total $ 291,000
Expected timing of satisfaction period 1 year
Appalachia Coal  
Performance obligations unsatisfied or partially unsatisfied  
Total $ 999,073
Appalachia Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01  
Performance obligations unsatisfied or partially unsatisfied  
Total $ 606,498
Expected timing of satisfaction period 9 months
Appalachia Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Performance obligations unsatisfied or partially unsatisfied  
Total $ 352,175
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 $ 31,400
Expected timing of satisfaction period 1 year
Appalachia Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Performance obligations unsatisfied or partially unsatisfied  
Total $ 9,000
Expected timing of satisfaction period 1 year
v3.24.1.u1
EARNINGS PER LIMITED PARTNER UNIT (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
EARNINGS PER LIMITED PARTNER UNIT    
NET INCOME ATTRIBUTABLE TO ARLP $ 158,057 $ 191,185
General partner's interest in net income attributable to ARLP   (1,384)
Limited partners' interest in net income attributable to ARLP 158,057 189,801
Distributions to participating securities (1,680) (2,432)
Undistributed earnings attributable to participating securities (1,448) (2,979)
Net income (loss) attributable to ARLP available to limited partners $ 154,929 $ 184,390
Weighted-average limited partner units outstanding - basic (in units) 127,670,897 127,289,340
Weighted-average limited partner units outstanding - diluted (in units) 127,671,000 127,289,000
Earnings per limited partner unit - basic (in dollars per unit) $ 1.21 $ 1.45
Earnings per limited partner unit - diluted (in dollars per unit) $ 1.21 $ 1.45
Anti-dilutive under the treasury stock method (in units) 2,175,000 3,147,000
v3.24.1.u1
WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Reconciliation of changes in the workers' compensation liability    
Beginning balance $ 47,975 $ 49,452
Changes in accruals 3,125 3,874
Payments (4,048) (3,859)
Interest accretion 509 550
Ending balance 47,561 $ 50,017
Other long-term assets    
Estimated present value of future obligations and other information    
Receivables for traumatic injury claims $ 4,100  
v3.24.1.u1
WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Details) - Pneumoconiosis benefits - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Black lung benefits:    
Service cost $ 861 $ 669
Interest cost $ 1,558 $ 1,238
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)
Net amortization $ 839 $ 346
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)
Net periodic benefit cost $ 3,258 $ 2,253
v3.24.1.u1
COMMON UNIT-BASED COMPENSATION PLANS - LTIP Grants (Details) - ARLP LTIP - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Number of units    
Balance at the beginning of the period (in units) 2,710,344  
Granted (in units) 455,574  
Vested (in units) (1,582,422)  
Forfeited (in units) (22,958)  
Balance at the end of the period (in units) 1,560,538  
Weighted average grant date fair value per unit    
Balance at the beginning of the period (in dollars per unit) $ 10.91  
Granted (in dollars per unit) 19.69  
Vested (in dollars per unit) 6.53  
Forfeited (in dollars per unit) 15.31  
Balance at the end of the period (in dollars per unit) $ 17.86  
Intrinsic value (in dollars)    
Intrinsic value of outstanding grants (in dollars) $ 31,289 $ 51,405
Other information    
Common units issued 936,544  
v3.24.1.u1
COMMON UNIT-BASED COMPENSATION PLANS - LTIP Other (Details) - ARLP LTIP - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Other information    
Unit-based compensation expense $ 2.0 $ 2.3
Total unit-based obligation recorded 11.2  
Unrecognized compensation expense (in dollars) $ 16.7  
Weighted-average period for recognition of expense 1 year 7 months 6 days  
v3.24.1.u1
COMMON UNIT-BASED COMPENSATION PLANS - SERP and Directors (Details) - SERP and Deferred Compensation Plans - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Number of units      
Balance at the beginning of the period (in units) 811,946    
Granted (in units) 27,879    
Balance at the end of the period (in units) 839,825    
Weighted average grant date fair value per unit      
Balance at the beginning of the period (in dollars per unit) $ 20.44    
Granted (in dollars per unit) 19.90    
Balance at the end of the period (in dollars per unit) $ 20.42    
Intrinsic value (in dollars)      
Intrinsic value of outstanding grants (in dollars) $ 16,838   $ 17,197
Other information      
Unit-based compensation expense 700 $ 600  
Total unit-based obligation recorded $ 17,100    
v3.24.1.u1
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Details) - Defined benefit pension plan - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Components of net periodic benefit cost:    
Interest cost $ 1,259 $ 1,295
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)
Expected return on plan assets $ (1,765) $ (1,598)
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)
Amortization of prior service cost $ 47 $ 47
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)
Amortization of net loss $ 37 $ 173
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)
Net periodic benefit cost $ (422) $ (83)
v3.24.1.u1
SEGMENT INFORMATION - General (Details)
 3 Months Ended
Mar. 31, 2024
segment
SEGMENT INFORMATION  
Number of reportable segments 4
Number Of Coal Reportable Segments 2
Number Of Mining Complex 7
Percentage of coal sold by coal operations' mines leased from coal royalties entities 64.00%
v3.24.1.u1
SEGMENT INFORMATION - Segment Results (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Reportable segment results      
Revenues $ 651,697 $ 662,922  
Segment Adjusted EBITDA Expense 358,327 339,296  
Segment Adjusted EBITDA 260,554 291,947  
Total assets 2,965,787 2,787,749 $ 2,788,426
Capital expenditures 123,846 95,474  
Other revenues      
Reportable segment results      
Revenues 22,035 19,403  
Coal Royalties      
Reportable segment results      
Revenues 18,708 15,513  
Operating segments | Illinois Basin Coal      
Reportable segment results      
Revenues 397,841 360,406  
Segment Adjusted EBITDA Expense 233,087 207,069  
Segment Adjusted EBITDA 140,278 132,008  
Total assets 1,019,209 840,792  
Capital expenditures 96,133 61,982  
Operating segments | Illinois Basin Coal | Other revenues      
Reportable segment results      
Revenues 2,735 2,168  
Operating segments | Appalachia Coal      
Reportable segment results      
Revenues 198,013 251,259  
Segment Adjusted EBITDA Expense 117,502 125,799  
Segment Adjusted EBITDA 74,235 116,550  
Total assets 520,093 459,834  
Capital expenditures 26,451 32,505  
Operating segments | Appalachia Coal | Other revenues      
Reportable segment results      
Revenues 487 475  
Operating segments | Oil & Gas Royalties      
Reportable segment results      
Revenues 37,345 35,537  
Segment Adjusted EBITDA Expense 4,940 4,424  
Segment Adjusted EBITDA 31,402 30,045  
Total assets 783,309 768,728  
Capital expenditures   2  
Operating segments | Oil & Gas Royalties | Other revenues      
Reportable segment results      
Revenues 315 1,040  
Operating segments | Coal Royalties      
Reportable segment results      
Revenues 6    
Segment Adjusted EBITDA Expense 6,264 5,388  
Segment Adjusted EBITDA 12,444 10,125  
Total assets 320,217 326,064  
Capital expenditures   400  
Operating segments | Coal Royalties | Other revenues      
Reportable segment results      
Revenues 6    
Other, Corporate and Elimination      
Reportable segment results      
Revenues (210) 207  
Segment Adjusted EBITDA Expense (3,466) (3,384)  
Segment Adjusted EBITDA 2,195 3,219  
Total assets 322,959 392,331  
Capital expenditures 1,262 585  
Other, Corporate and Elimination | Other revenues      
Reportable segment results      
Revenues 18,492 15,720  
Elimination      
Reportable segment results      
Revenues (18,702) (15,513)  
Elimination | Coal Royalties      
Reportable segment results      
Revenues $ 18,702 $ 15,513  
v3.24.1.u1
SEGMENT INFORMATION - EBITDA Expense Reconciliation (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Reconciliation of consolidated Segment Adjusted EBITDA Expense    
Litigation expense accrual $ (15,250)  
Outside coal purchases 9,112  
Other expense (income) 606 $ 573
Segment Adjusted EBITDA Expense 358,327 339,296
Product    
Reconciliation of consolidated Segment Adjusted EBITDA Expense    
Operating expenses (excluding depreciation, depletion and amortization) $ 363,859 $ 338,723
v3.24.1.u1
SEGMENT INFORMATION - EBITDA Reconciliation (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Reconciliation of consolidated Segment Adjusted EBITDA to net income    
Net income $ 159,567 $ 192,678
Noncontrolling interest (1,510) (1,493)
NET INCOME ATTRIBUTABLE TO ARLP 158,057 191,185
General and administrative 22,129 21,085
Depreciation, depletion and amortization 65,549 65,550
Interest expense, net 6,473 9,886
Change in fair value of digital assets (11,853)  
Litigation expense accrual 15,250  
Income tax expense 4,949 4,241
Consolidated Segment Adjusted EBITDA 260,554 291,947
JC Resources acquisition   (72,250)
Oil and gas acquisitions total $ 1,800 2,800
JC Resources    
Reconciliation of consolidated Segment Adjusted EBITDA to net income    
JC Resources acquisition   $ 72,300
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net Income (Loss) $ 158,057 $ 191,185
v3.24.1.u1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2024
Trading Arrangements, by Individual  
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