Alliance Resource Partners (ARLP) 8-K Alliance to Present at the 7th Annual Wachovia Pipeline and MLP Symposium Conference

Alliance Resource Partners, L.P.

Alliance Holdings GP, L.P.

Wachovia Capital Markets

Pipeline & MLP Symposium

December 9, 2008

Exhibit 99.2

Forward-Looking Statements

Forward-Looking Statements

2

2

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

statements

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.

Outlook for coal

Macro Coal Dynamics

Macro Coal Dynamics

Liquidity Crunch

Hedge

fund

deleveraging

Financial coal traders exiting the market

Reduced capital availability

Instinct to preserve capital countered by….

Anticipated 2009-2010 cash flow surge

Alternative energy investments

Demand Destruction

China, India and global economic slowdown

Domestic energy consumption

Natural gas competition mitigated by….

Base load nature of Coal

Recessionary Pressures

Hyperinflation has been arrested

4

4

Macro Coal Dynamics

Macro Coal Dynamics

Obama and a Democratic Congress

Positives

Acknowledged importance of Coal

Generates

~50%

of

U.S.

electricity

1

Employees

hundreds

of

thousand

of

Americans

Provides millions in tax revenues to coal states

America’s

most

abundant

low-cost

fuel

source

Economic stimulus & commitment to U.S. jobs

Infrastructure investments will increase energy demand

Investment in Clean Coal technology

Negatives

Challenging legislative/regulatory landscape

Climate

Change

–

Cap

&

Trade?

Structure?

Union influence –

Card Check

New MSHA

5

5

(1)  Energy Information Administration

Domestic Coal Supply Outlook

Domestic Coal Supply Outlook

Short Term Supply –

Will Be Lower

Reduced investment capital & credit capacity

Lack of equipment availability

MSHA –

productivity declines

Permitting delays and litigation

Labor shortages are still a factor

High cost operations at risk

International production constraints continue

6

6

Long Term Supply

Governmental action

Depletion of low cost reserves

Domestic Coal Demand Outlook

Domestic Coal Demand Outlook

Short Term Demand –

Lower Due to

Worldwide Economic Downturn

Met market

Steel production cuts

Coal prices –

U.S. vs. Australian production

U.S. currency value

PCI market

Steam coal

Natural gas competition

Stockpiles are normal?

7

7

Domestic Coal Demand Outlook

Domestic Coal Demand Outlook

8

8

Long Term Demand

Positives

29

new

U.S.

coal-fired

power

plants

(16.5GW)

under

construction

Plug-in Hybrids

Economic stimulus programs –

U.S. $700B / China $300B

Met market will return

U.S. currency will reverse

BTU conversion –

coal to gas / liquids

Clean coal technology

Negatives

Climate change

Renewable energy standard

Conservation/energy efficiency –

smart meters, save a watt

programs…

Natural gas competition –

price/demand volatility, depletion, capital

constraints

(1)  U.S. Department of Energy, “Tracking New Coal-Fired Power Plants”, June 2008

1

Summary –

Summary –

Domestic Coal Outlook

Domestic Coal Outlook

Despite challenges….

Coal has been and is best positioned

to remain the Cornerstone of

America’s Electric Energy Future

9

9

Outlook for Alliance

Alliance Snapshot

Alliance Snapshot

Fifth

largest

coal

producer

in

the

eastern

United

States

Eight

underground

mining

complexes

in

all

major

eastern

coal

producing

regions

Four

significant

organic

development

projects

in

the

growing

Illinois

Basin

and

Northern

Appalachia

coal

markets

Marketable

coal

reserves

of

~

713

million

tons

at

12/31/07

FY2008

estimated

coal

sales

of

26.8

to

27.3

million

tons

and

revenue

of

$1.03

to

$1.1

billion

1

1

2

2

3

3

5

5

6

6

4

4

9

9

8

8

12

12

11

11

10

10

Illinois

Illinois

Indiana

Indiana

Ohio

Ohio

Pennsylvania

Pennsylvania

Maryland

Maryland

Virginia

Virginia

West

West

Virginia

Virginia

Kentucky

Kentucky

7

7

Current

Mining

Operation

Future

Growth

Project

Transfer

Terminal

Pattiki

Complex

River View Complex

Dotiki Complex

Mount Vernon

Transfer Terminal

Warrior Complex

Hopkins

Complex

Gibson Complex

Pontiki Complex

MC Mining Complex

Tunnel

Ridge

Complex

Penn Ridge Complex

Mettiki Complex

3

3

4

4

1

1

2

2

5

5

6

6

7

7

8

8

9

9

10

10

11

11

12

12

11

11

Consistent Track Record of Distribution

Consistent Track Record of Distribution

Growth

Growth

ARLP has increased distributions 40% since June 2006

AHGP has increased distributions 81% since June 2006

Source:  Public filings

ARLP

ARLP

12

12

AHGP

AHGP

$2.24

$2.34

$2.34

$2.64

$2.80

$2.00

$2.16

$2.16

$2.24

$1.25

$1.50

$1.75

$2.00

$2.25

$2.50

$2.75

$3.00

$1.06

$1.15

$1.15

$1.41

$1.56

$0.86

$1.00

$1.00

$1.06

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

Strong Realized Coal Price Growth

Strong Realized Coal Price Growth

$20.00

$30.00

$40.00

$50.00

$60.00

2008(e)

2009(e)

2010(e)

`

(1)

Based on guidance from October 27, 2008 earnings release.  For 2008, estimate reflects midpoint of guidance. For 2009 estimate, the

guidance range reflects an increase of 25% -

35% over the midpoint of 2008 estimated pricing.  For 2010 estimate, the guidance range

reflects an increase of 40% -

50% over the midpoint of 2008 estimated pricing.

Estimated

Coal

Sales

Price/Ton

(1)

Strong Coal Sales Commitments

$59.72

$55.74

$53.74

$49.76

$39.81

Committed and priced coal

sales

•

2009 ~ 90%

•

2010 ~ 80%

Executed agreements during

2008Q3 for 22.9 million tons

•

Terms up to 10 years

•

Prices 65% above

historical levels

13

13

Alliance’s Long Term Growth Strategy

Alliance’s Long Term Growth Strategy

Capitalize on the expected strong demand growth

in scrubber quality coal

Continue to be a disciplined producer -

project

developments tied to sales commitments

Continuous focus on safety and operational

optimization

Pursue opportunistic acquisitions

14

14

Large Inventory of Organic Growth Projects

Large Inventory of Organic Growth Projects

Permitting

in

progress

Estimated

capital

cost

~

$265

–

$285

million

Estimated

reserves

~

70

million

tons

high

sulfur

coal

Production

capacity

~

6

million

tons/year

Initial

production

in

2010Q4

Tunnel Ridge

Initiating

permitting

process

Estimated

capital

cost

~

$165

–

$175

million

Estimated

reserves

~

57

million

tons

high

sulfur

coal

Production

capacity

~

5

million

tons/year

Initial

production

in

2011

–

2013

Penn Ridge

Constructing

slope

and

shaft

Estimated

capital

cost

~

$250

–

$275

million

Estimated

reserves

~

117

million

tons

high

sulfur

coal

Production

capacity

~

6.4

million

tons/year

Initial

production

in

2009Q4

River View

Permitting

in

progress

Estimated

capital

cost

~

$100

–

$110

million

Estimated

reserves

~

83

million

tons

medium

sulfur

coal

Production

capacity

~

2.7

–

3.1

million

tons/year

Initial

production

in

2010

–

2012

Gibson South

Illinois

Illinois

Indiana

Indiana

Ohio

Ohio

Pennsylvania

Pennsylvania

Maryland

Maryland

Virginia

Virginia

West

West

Virginia

Virginia

Kentucky

Kentucky

Note:  Estimated capital costs are based on 2007 dollars and exclude capitalized development and interest expenses.  Timing of

anticipated initial production dependent upon obtaining  required permits and customer contracts.

15

15

Strong Balance Sheet

Strong Balance Sheet

Strong Balance Sheet

16

16

Net Debt as Percentage of

Capitalization

2003YE

2004YE

2005YE

2005YE

2006YE

2006YE

2007YE

92.1%

64.3%

34.1%

30.1%

32.5%

Source:  Public filings

24.1%

2008Q3

$350 million private placement of

Senior Notes completed 06/26/08

•

$205 million at 6.28% due 2015

•

$145 million at 6.72% due 2018

Existing $150 million revolving

credit facility expires in 2012

Liquidity of ~$380 million available

at 2008Q3

Current debt obligation of $18

million

Visible cash flow growth

Alliance Resource Partners, L.P.

Alliance Holdings GP, L.P.

Wachovia Capital Markets

Pipeline & MLP Symposium

December 9, 2008