Alliance Resource Partners (ARLP) 8-K Alliance CFO to Present at Second Annual RBC Capital Market MLP Conference

RBC Capital Market

Second Annual MLP Conference

November 17, 2006

Alliance Resource Partners, L.P.

Alliance Holdings GP, L.P.

Exhibit 99.2

Forward-Looking Statements

This

presentation

contains

forward-looking

statements

and

information

that

are

based

on

the

beliefs

of

Alliance

Resource

Partners,

L.P.

and

Alliance

Holdings

GP,

L.P.

(the

“Partnerships”)

and

those

of

their

respective

general

partners

(the

“General

Partners”),

as

well

as

assumptions

made

by

and

information

currently

available

to

them.

When

used

in

this

presentation,

words

such

as

“anticipate,”

“project,”

“expect,”

“plan,”

“goal,”

“forecast,”

“intend,”

“could,”

“believe,”

“may,”

and

similar

expressions

and

state

ments

regarding

the

plans

and

objectives

of

the

Partnerships

for

future

operations,

are

intended

to

identify

forward-looking statements.

Although

the

Partnerships

and

their

General

Partners

believe

that

such

expectations

reflected

in

such

forward-looking

statements

are

reasonable

at

the

time

such

statements

are

made,

neither

the

Partnerships 

nor the General Partners can give assurances that such expectations will prove to be correct. Such

statements are subject to a variety of risks, uncertainties and assumptions.  If one or more of these risks or

uncertainties

materialize,

or

if

underlying

assumptions

prove

incorrect,

actual

results

may

vary

materially

from those the Partnerships anticipated, estimated, projected or

expected.

The

Partnerships

have

no

obligation

to

publicly

update

or

revise

any

forward-looking

statement,

whether

as

a result of new information, future events or otherwise.

Alliance  Overview

Ownership of Alliance Partnerships

(a)  Includes general partner interest held directly in ARLP’s Intermediate Partnership.

__________________

56.7%

L.P.

Interest

42.3% L.P.

Interest

1.98% General

Partner Interest

Alliance Holdings

GP , L.P.

(NASDAQ: AHGP)

59.9 million units outstanding

Alliance Resource

Partners, L.P.

(NASDAQ: ARLP)

36.4 million units outstanding

Public

Unitholders

Public

Unitholders

Management /

Others

1

(a)

IDRs

80.0%

L.P.

Interest

20.0%

L.P.

Interest

Ownership structure provides two ways to invest in Alliance Partnerships

Strong alignment of interests throughout the Alliance Partnerships

Management owns significant interests directly in AHGP and indirectly in ARLP

All unitholders benefit from increased distributions by ARLP

5th

largest eastern coal producer

549 million tons of reserves at

1/1/06

642 million tons at 4/12/06

following River View

acquisition

7.9%

32.2%

$1,361 mm

$1,253 mm

1.99x

$2.00

$34.41

ARLP

$19.49

Unit Price (11/07/06):

$1,167 mm

Equity Market Cap:

Ownership Interests in ARLP

1.98% G.P. Interest

100% of Incentive Distribution Rights

15.6 mm ARLP common units

Asset Profile:

0.0%

Net Debt / Book Cap:

$1,167 mm

Enterprise Value:

$0.86

Distribution:

AHGP

NASDAQ Symbol:

0.0%

Net Debt / Enterprise Value:

1.00x

Total Unit Coverage:

Alliance Partnership Profiles

2

Strong operational and financial attributes of Alliance Resource

Partners, L.P.

Established history of operating and financial performance

Efficient, low-cost operator

Proven track record of executing growth strategy

Robust industry fundamentals

Meaningful upside through re-contracting exposure to market prices

Experienced management team

Visible inventory of growth prospects

Industry-leading distribution coverage at ARLP provides stability and a catalyst

for future growth

Accelerated cash flow growth potential of Alliance Holdings GP, L.P. through

ownership of ARLP incentive distribution rights

Strong economic alignment throughout organization

Management owns significant interests in both ARLP and AHGP

Alliance Investment Highlights

3

Increase cash distributions to unitholders by actively assisting

ARLP in implementing its business strategy

AHGP supports ARLP by assisting with the identification, evaluation and pursuit of

growth opportunities

AHGP may provide ARLP access to AHGP’s

capital resources to facilitate such growth

opportunities

Complementary Business Objectives

Alliance Holdings GP, L.P.

4

Create sustainable, capital efficient growth in distributable cash flow to

maximize growth in distributions to ARLP unitholders

Maximize existing asset base –

expand / extend current operations, continuous focus on  

productivity improvements

Build on strong coal platform –

develop new mining complexes, enhance customer /

strategic relationships, pursue strategic opportunities

Alliance Resource Partners, L.P.

Alliance Resource Partners, L.P.

Overview

__________________

ARLP is a diversified producer and

marketer of coal to major U.S. utilities and

industrial users

Fifth largest eastern coal producer and

eleventh largest in the U.S.

(a)

Only publicly-traded master limited

partnership involved in the production and

marketing of coal

At 1/1/06, ARLP had approximately

549.0

million tons of proven and probable

coal reserves in the Illinois Basin, Central

Appalachia and Northern Appalachia

regions

On April 12, 2006, ARLP announced the

acquisition of River View, adding 99.3

million tons of reserves

(a)

Source: Platts

coal data as of 12/31/05

Alliance Resource Partners, L.P. Snapshot

Unit Price at 11/07/06:

$34.41

Current Annualized Distribution:

$2.00

Current Yield:

5.81%

Equity Market Value:

~$1,253 mm

Enterprise Value:

~$1,361 mm

ARLP Trading Information

5

1

2

3

4

Pattiki Complex

River View Complex

Dotiki Complex

Mount Vernon

Transfer Terminal

5

6

7

8

Warrior Complex

Hopkins Complex

Gibson Complex

Pontiki Complex

9

10

11

12

MC Mining Complex

Tunnel Ridge Complex

Penn Ridge Complex

Mettiki Complex

6

Operations Summary

Northern

Appalachia

15%

Illinois Basin

70%

Central

Appalachia

15%

2005 Production

Northern

Appalachia

31%

Illinois Basin

61%

Central

Appalachia

8%

Reserves -

2005 YE

6

2005 Summary (MM Tons)

Production

Reserves

Primary Customers

Illinois Basin

Dotiki

4.7

89.5

Seminole; TVA

Warrior

4.1

17.8

Synfuel Solutions, LG&E

Pattiki

2.6

47.6

TVA; Tampa Electric

Hopkins

0.9

64.3

LG&E, Tampa Electric

Gibson (North)

3.4

35.1

Duke Energy, Alabama Electric

Gibson (South)

-

82.7

-

Region Total

15.7

337.0

Central Appalachia

Pontiki

1.7

18.4

ICG, Progress, Ontario Power

MC Mining

1.6

22.8

Progress, NRG, East Kentucky

Region Total

3.3

41.2

Northern Appalachia

Mettiki / Mettiki WV

3.3

43.6

Virginia Electric Power

Tunnel Ridge

-

70.5

-

Penn Ridge

-

56.7

-

Region Total

3.3

170.8

Total Company

22.3

549.0

Including River View Reserves (4/12/06)

642.0

Allegheny Energy

Efficient Operator

Source: Public filings

EBITDA margin represents  EBITDA / Total Revenues.  EBITDA is a non-GAAP measure.  See  reconciliation slide of  EBITDA to Net Income.

ARLP is a low-cost, efficient coal operator, delivering sector-leading EBITDA

margins

__________________ 

7

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Alliance

Arch

Consol

Foundation

Peabody

Massey

Alpha

2003

2004

2005

2006YTD

Focused on Safety

ARLP’s safety

performance has

been consistently

better than our

industry peer group

State-of-the-art

Leaky Feeder mine

communication

system installed at

all operations in

2005 except Pontiki

Fiber optic based

mine monitoring

system expected to

be completed at all

operations by year

end

Partnership with

Norwest for

periodic mine

inspections

8

18.0

19.2

20.4

22.3

24.1

10.0

15.0

20.0

25.0

2002

2003

2004

2005

2006E

__________________ 

Note: EBITDA is a non-GAAP measure defined as income before net interest expense, income taxes and depreciation, depletion and amortization.  See reconciliation slide of EBITDA to Net Income.

(a)   Based on the midpoint of management guidance.

Consistent Track Record of Growth at ARLP

Production

$499.9

$523.2

$623.5

$799.6

$920.0

$0.0

$200.0

$400.0

$600.0

$800.0

$1,000.0

2002

2003

2004

2005

2006E

Revenue

$101.3

$110.3

$145.1

$193.6

$245.0

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

2002

2003

2004

2005

2006E

Cash Flow from Operations

$102.5

$119.0

$147.9

$230.1

$250.0

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

2002

2003

2004

2005

2006E

EBITDA

CAGR: 7.6%

CAGR: 16.5%

CAGR: 25.0%

CAGR: 24.7%

(a)

(a)

(a)

9

(a)

$1.00

$1.00

$1.05

$1.05$1.05

$1.05

$1.13

$1.25

$1.30

$1.30

$1.50

$1.50

$1.65

$1.65

$1.84

$1.84

$2.00

$2.00

$0.75

$0.95

$1.15

$1.35

$1.55

$1.75

$1.95

(a)

In October 2006, ARLP management announced a quarterly cash distribution to $0.50 per unit for the second quarter ended 9/30/06 ($2.00 per unit, annualized).

Continuous Unit Distribution Growth

__________________ 

ARLP has increased its quarterly distribution by 100% over the last four years

(a)

10

Leader in Distribution Growth

ARLP compares favorably to the broad MLP universe in terms of distribution

growth since the beginning of 2004

(a)

11

114%

60%

54%

48%

41%

39%

38%

38%

35%

33%

24%

21%

19%

17%

16%

16%

14%

9%

2%

0%

__________________ 

(a)   Total distribution growth from distribution paid in the first quarter of 2004 to the latest announced distribution as of November 9, 2006.

Alliance Holdings GP, L.P.

Overview

Note:

This graph shows the impact to AHGP as a result of ARLP raising or lowering its quarterly distribution from the current announced distribution of $0.50 per common unit ($2.00 annualized). This

information is presented for illustrative purposes only and is not intended to be a prediction of future performance.

__________________ 

Incentive distribution rights provide AHGP unitholders with significant

financial leverage to ARLP distribution growth

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$1.84

$1.94

$2.04

$2.14

$2.24

$2.34

$2.44

Hypothetical ARLP Annual Distribution per L.P. Unit

Hypothetical

Distributions to

AHGP

AHGP Leverage to ARLP Growth

G.P.

Interest

IDRs

L.P.

Interest

Current ARLP

Distribution

($2.00 per unit)

12

Note:

Assumes constant 36.4 million common units outstanding at ARLP.

__________________ 

Impact of ARLP Distribution Growth

13

AHGP Leverage to ARLP Distribution Growth

ARLP Distribution Growth

0%

10%

20%

30%

0%

5%

10%

15%

20%

9.5%

25.5%

17.9%

32.6%

Benefits of Industry-Leading Distribution Coverage

ARLP’s coverage ratio is among the highest of publicly traded limited

partnerships in the energy sector

(a)

Benefits to AHGP investors include:

Greater potential for future distribution growth

Capital efficient financing for ARLP organic growth projects

Added stability across operating and pricing environments

(a)

Source: public filings. Coverage calculated as 2006E distributable cash flow (per Wall Street equity research) divided by current annualized cash distributions.

(b)

Coal MLP Index includes NRP and PVR. Coverage calculated as 2006E distributable cash flow (per Wall Street equity research) divided by current annualized cash distributions.

(c)

Pipeline MLP Index includes APL, BPL, BWP, XTEX, DPM, EEP, EPD, ETP, HLND, HEP, KMP, MMP, MWE, MMLP, NBP, PPX, PAA, RGNC, SXL, TCLP, TLP, TPP, WPZ and VLI. Coverage

calculated as 2006E distributable cash flow (per Wall Street equity research) divided by current annualized cash distributions.

__________________ 

(b)

(c)

14

1.99x

1.32x

1.15x

ARLP

Coal MLP Index

Pipeline MLP Index

Value Inherent in Underlying Cash Flows

ARLP’s value

proposition becomes

clear through its current

cash available for

distribution

The impact is even more

pronounced at Alliance

Holdings GP due to the

IDR leverage

Implied Yields

(a)

9.41%

7.41%

10.55%

4.27%

4.54%

6.64%

6.27%

5.76%

5.15%

7.62%

1.50%

3.00%

4.50%

6.00%

7.50%

9.00%

10.50%

12.00%

ARLP

Coal MLPs

Pipeline

MLPs

AHGP

GP

Holdcos

Distributed Yield

Assuming 1.00x Coverage at MLP

(a)

Yields as of 10/10/06.

(b)

Coal MLPs

Index includes NRP and PVR.

(c)

Pipeline

MLPs

includes

APL,

BPL,

BWP,

DPM,

XTEX,

EEP,

EPD,

ETP,

HLND,

HEP,

KMP,

MMP,

MWE,

MMLP,

NBP,

PPX,

PAA,

RGNC,

SXL,

TCLP,

TLP,

TPP,

WPZ

and

VLI.

(d)

GP Holdcos

includes AHD, BGH, XTXI, EPE, ETE, HPGP, MGG, NRGP and VEH.

__________________ 

(c)

(d)

(b)

15

Positioned for Continued Growth

Growing Domestic Coal Demand

Strong U.S. economy

New coal-fired power plants expected to result in

120 MTPY of additional coal demand by 2010

(a)

Btu conversion technologies could more than double

U.S. coal demand by 2030

(b)

Constrained Domestic Coal Supply

Regulatory environment –

safety and permitting

Increasing capital requirements and operating costs

Shortages of equipment and labor

Ongoing transportation infrastructure issues

Increasing Global Coal Demand

Global economic expansion continues to drive

escalating demand for energy

Global coal demand has increased by 23% or 1

billion tons since 2001

(c)

Worldwide coal demand expected to nearly double

by 2030

(d)

Challenges for Competing Fuels

Nuclear utilization at full capacity

Non-competitive oil and natural gas prices

Continued challenges for LNG

Robust Coal Industry Fundamentals

__________________ 

Sources: (a) Energy Information Administration, (b) National Coal Council, (c) BP Statistical Review of World Energy, (d) Department of Energy, Energy Information Administration,         

International Energy Outlook

16

ARLP Has Benefited from Positive Coal Markets

2006YTD average coal sales prices have increased 9.4% since 2005Q3

(a)

$25.77

$28.79

$33.65

$36.58

$38.53

$0.00

$10.00

$20.00

$30.00

$40.00

2003

2004

2005

2006YTD

2007E

Coal Sales / Ton Sold

CAGR: 10.6%

17

(a)

See

ARLP

Press

release

dated

October

26,

2006.

(b)

Average

sales

price

per

ton

for

the

nine

months

ended

September

30,

2006.

(c)

See

ARLP

Press

release

dated

January

30,

2006.

__________________ 

(b)

(c)

ARLP Is Positioned for Future Sector Growth

Future revenue growth potential enhanced by meaningful exposure to market

pricing

Coal Sales Volumes Open to

Market Pricing

18

15.8

3.4

0.1

0

5

10

15

20

2006

2007

2008

Major Supply Shifts Influenced by Clean Air Act

Source:  MSHA / Platts

19

U.S. Coal Supply

(Million Tons)

Change

% Change

1990

1995

2000

2005

90 - '05

90 - '05

Illinois Basin

141

109

87

92

(49)

-35%

Northern Appalachia

166

137

140

140

(26)

-16%

Central Appalachia

287

272

263

232

(55)

-19%

Powder River Basin

199

286

362

430

231

116%

Subtotal

793

804

852

894

101

13%

Other

225

228

224

233

8

4%

TOTAL

1,018

1,032

1,076

1,127

109

11%

Significant Scrubber Market Dynamics

Scrubber Additions -

Announced

Planned

Current and pending

legislation has caused

utilities to add or announce

plans to add scrubbers

which management expects

should lead to additional

market opportunities for

the Illinois Basin and

Northern Appalachian

regions

As utilities execute their

environmental compliance

initiatives, a significant

amount of coal demand

historically supplied from

the Central Appalachian

region should switch to

higher sulfur Illinois Basin

and Northern Appalachian

coal

20

Source:  Company analysis.

__________________ 

ARLP Well Positioned in Scrubber Markets

6

Illinois Basin

Second largest producer in the basin

Strong reserve base of ~423 million tons of

high and medium sulfur coal

Currently accounts for ~70% of total

ARLP coal production

Northern Appalachia

Strong reserve base of ~168 million tons of

high and medium sulfur coal

Currently accounts for ~15% of total

ARLP coal production

Approximately 590 million tons of “scrubber”

quality coal

21

6

Tunnel Ridge

Permitting in progress

Development cost ~ $260 million

Estimated reserves ~ 70 million tons high-

sulfur coal

Production capacity ~ 6 million tons/year

Initial

production

in

2008

–

2009

River View

Permitting in progress

Development cost ~ $200 million

Estimated reserves ~ 99 million tons high-

sulfur coal

Initial

production

in

2008

–

2009

Gibson South

Permitting in progress

Development cost ~ $200 million

Estimated reserves ~ 83 million tons high-

sulfur coal

Initial

production

in

2008

–

2009

Large Inventory of Organic Growth Projects

Estimated

development

costs

based

on

2006

dollars.

Timing

of

anticipated

initial

production

dependent

upon

obtaining

required

permits

and

customer

contracts

`

Penn Ridge

Permitting in progress

Development cost ~ $200 million

Estimated reserves ~ 55 million tons high-

sulfur coal

Production capacity ~ 6 million tons/year

Initial

production

in

2008

–

2009

22

__________________ 

Summary

Strong operational and financial attributes of Alliance Resource

Partners, L.P.

Established history of operating and financial performance

Efficient, low-cost operator

Proven track record of executing growth strategy

Robust industry fundamentals

Meaningful upside through re-contracting exposure to market prices

Experienced management team

Visible inventory of growth prospects

Industry-leading distribution coverage at ARLP provides stability and a catalyst

for future growth

Accelerated cash flow growth potential of Alliance Holdings GP, L.P. through

ownership of ARLP incentive distribution rights

Strong economic alignment throughout organization

Management owns significant interests in both ARLP and AHGP

Alliance Investment Highlights

23

Appendix

ARLP EBITDA Reconciliation

EBITDA

is

defined

as

income

before

net

interest

expense,

income

taxes

and

depreciation,

depletion

and

amortization. 

Management

believes

EBITDA

is

a

useful

indicator

of

its

ability

to

meet

debt

service

and

capital

expenditure

requirements

and

uses

EBITDA

as

a

measure

of

operating

performance.

EBITDA

should

not

be

considered

as

an

alternative

to

net

income,

income

from

operations,

cash

flows

from

operating

activities

or

any

other

measure

of

financial

performance

presented

in

accordance

with

generally

accepted

accounting

principles.

EBITDA

is

not

intended

to

represent

cash

flow

and

does

not

represent

the

measure

of

cash

available

for

distribution.

The

Partnership's

method

of

computing

EBITDA

may

not

be

the

same

method

used

to

compute

similar

measures

reported

by

other

companies,

or

EBITDA

may

be

computed

differently

by

the

Partnership

in

different

contexts

(i.e.

public

reporting

versus

computation

under

financing

agreements).

Estimate

midpoint

reflects

the

Partnership’s

most

recent

guidance.

24

2006E

2002

2003

2004

2005

Midpoint

Cash flows provided by operating activities

101,306

$ 

110,312

$   

145,055

$   

193,618

$   

245,000

$   

Reclamation and mine closing

(1,365)

(1,341)

(1,622)

(1,918)

(2,000)

Coal inventory adjustment to market

(48)

(687)

(488)

(573)

-

Other

1,014

353

(255)

(2,057)

(5,200)

Net effect of changes in operating assets and liabilities

(13,714)

(8,240)

(12,405)

26,577

400

Interest expense

16,360

15,981

14,963

11,816

9,500

Income taxes

(1,094)

2,577

2,641

2,682

2,500

Minority interest income

-

-

-

-

(200)

EBITDA

102,459

$ 

118,955

$   

147,889

$   

230,145

$   

250,000

$   

Depreciation, depletion and amortization

(52,408)

(52,495)

(53,664)

(55,637)

(73,200)

Interest expense

(16,360)

(15,981)

(14,963)

(11,816)

(9,500)

Income taxes

1,094

(2,577)

(2,641)

(2,682)

(2,500)

Minority interest income

-

-

-

-

200

Net Income

34,785

$   

47,902

$     

76,621

$     

160,010

$   

165,000

$   

Year Ended December 31,

RBC Capital Market

Second Annual MLP Conference

November 17, 2006

Alliance Resource Partners, L.P.

Alliance Holdings GP, L.P.