Alliance Resource Partners (ARLP) 10-Q 4 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 04, 2017
Document and Entity Information
Entity Registrant Name	ALLIANCE RESOURCE PARTNERS LP
Entity Central Index Key	1,086,600
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Units Outstanding		130,704,217
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 39,457	$ 39,782
Trade receivables	118,801	152,032
Other receivables	241	279
Due from affiliates	419	271
Inventories, net	115,017	61,051
Advance royalties, net	1,207	1,207
Prepaid expenses and other assets	15,465	22,050
Total current assets	290,607	276,672
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost	2,926,175	2,920,988
Less accumulated depreciation, depletion and amortization	(1,400,169)	(1,335,145)
Total property, plant and equipment, net	1,526,006	1,585,843
OTHER ASSETS:
Advance royalties, net	40,737	29,372
Equity investments in affiliates	149,592	138,817
Goodwill	136,399	136,399
Other long-term assets	34,077	25,939
Total other assets	360,805	330,527
TOTAL ASSETS	2,177,418	2,193,042
CURRENT LIABILITIES:
Accounts payable	68,770	64,055
Due to affiliates	728	906
Accrued taxes other than income taxes	20,132	18,273
Accrued payroll and related expenses	37,405	41,576
Accrued interest	5,583	316
Workers' compensation and pneumoconiosis benefits	9,731	9,897
Current capital lease obligations	27,855	27,196
Other current liabilities	15,543	14,778
Current maturities, long-term debt, net	75,700	149,874
Total current liabilities	261,447	326,871
LONG-TERM LIABILITIES:
Long-term debt, excluding current maturities, net	385,886	399,446
Pneumoconiosis benefits	63,662	62,822
Accrued pension benefit	40,607	42,070
Workers' compensation	52,416	40,400
Asset retirement obligations	124,970	125,266
Long-term capital lease obligations	71,510	85,540
Other liabilities	17,353	17,203
Total long-term liabilities	756,404	772,747
Total liabilities	1,017,851	1,099,618
Alliance Resource Partners, L.P. ("ARLP") Partners' Capital:
Limited Partners - Common Unitholders 74,597,036 and 74,375,025 units outstanding, respectively	1,483,706	1,400,202
General Partners' deficit	(291,838)	(273,788)
Accumulated other comprehensive loss	(38,035)	(38,540)
Total ARLP Partners' Capital	1,153,833	1,087,874
Noncontrolling interest	5,734	5,550
Total Partners' Capital	1,159,567	1,093,424
TOTAL LIABILITIES AND PARTNERS' CAPITAL	$ 2,177,418	$ 2,193,042

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Jun. 30, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Limited Partners, Common Unitholders, units outstanding	74,597,036	74,375,025

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
SALES AND OPERATING REVENUES:
Coal sales	$ 382,262	$ 422,469	$ 821,006	$ 823,761
Transportation revenues	7,328	5,482	16,924	12,040
Other sales and operating revenues	9,130	11,199	21,870	16,178
Total revenues	398,720	439,150	859,800	851,979
EXPENSES:
Operating expenses (excluding depreciation, depletion and amortization)	238,668	251,947	501,460	515,526
Transportation expenses	7,328	5,482	16,924	12,040
General and administrative	14,944	17,663	30,977	34,901
Depreciation, depletion and amortization	59,020	73,697	124,147	144,304
Total operating expenses	319,960	348,789	673,508	706,771
INCOME FROM OPERATIONS	78,760	90,361	186,292	145,208
Interest expense (net of interest capitalized for the three and six months ended June 30, 2017 and 2016 of $166, $46, $247 and $273, respectively)	(10,615)	(7,770)	(18,131)	(15,385)
Interest income	54	2	78	5
Equity in income (loss) of affiliates	2,916	(37)	6,616	(64)
Debt extinguishment loss	(8,148)		(8,148)
Other income	389	161	1,687	252
INCOME BEFORE INCOME TAXES	63,356	82,717	168,394	130,016
INCOME TAX EXPENSE (BENEFIT)	4	6	(8)	(3)
NET INCOME	63,352	82,711	168,402	130,019
LESS: NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTEREST	(122)	2	(270)	4
NET INCOME ATTRIBUTABLE TO ALLIANCE RESOURCE PARTNERS, L.P. ("NET INCOME OF ARLP")	63,230	82,713	168,132	130,023
GENERAL PARTNERS' INTEREST IN NET INCOME OF ARLP	604	20,430	20,750	40,152
LIMITED PARTNERS' INTEREST IN NET INCOME OF ARLP	$ 62,626	$ 62,283	$ 147,382	$ 89,871
BASIC NET INCOME OF ARLP PER LIMITED PARTNER UNIT (Note 9) (in dollars per unit)	$ 0.82	$ 0.82	$ 1.93	$ 1.18
DILUTED NET INCOME OF ARLP PER LIMITED PARTNER UNIT (Note 9) (in dollars per unit)	0.82	0.82	1.93	1.18
DISTRIBUTIONS PAID PER LIMITED PARTNER UNIT (in dollars per unit)	$ 0.4375	$ 0.4375	$ 0.8750	$ 1.1125
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING - BASIC (in units)	74,597,036	74,375,025	74,550,426	74,333,070
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING - DILUTED (in units)	74,597,036	74,375,025	74,550,426	74,333,070

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Interest expense, interest capitalized	$ 166	$ 46	$ 247	$ 273

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
NET INCOME		$ 63,352	$ 82,711	$ 168,402	$ 130,019
OTHER COMPREHENSIVE INCOME/(LOSS):
OTHER COMPREHENSIVE INCOME		252	128	505	256
COMPREHENSIVE INCOME		63,604	82,839	168,907	130,275
Less: Comprehensive (income) loss attributable to noncontrolling interest		(122)	2	(270)	4
COMPREHENSIVE INCOME ATTRIBUTABLE TO ARLP		63,482	82,841	168,637	130,279
Pension Plan
OTHER COMPREHENSIVE INCOME/(LOSS):
Amortization of prior service cost (1)	[1]	47		94
Amortization of net actuarial (gain) loss (1)	[1]	772	789	1,545	1,578
Total adjustments recognized		819	789	1,639	1,578
Pneumoconiosis benefits
OTHER COMPREHENSIVE INCOME/(LOSS):
Amortization of net actuarial (gain) loss (1)	[1]	(567)	(661)	(1,134)	(1,322)
Total adjustments recognized		$ (567)	$ (661)	$ (1,134)	$ (1,322)
[1]	Amortization of prior service cost and net actuarial gain or loss is included in the computation of net periodic benefit cost (see Notes 10 and 12 for additional details).

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
CASH FLOWS FROM OPERATING ACTIVITIES	$ 294,478	$ 212,342
Property, plant and equipment:
Capital expenditures	(67,517)	(48,602)
Increase (decrease) in accounts payable and accrued liabilities	2,411	(10,894)
Proceeds from sale of property, plant and equipment	540	749
Contributions to equity investments in affiliates	(12,587)	(33,185)
Other	1,829	960
Net cash used in investing activities	(75,324)	(90,972)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under securitization facility	75,700	32,100
Payments under securitization facility	(100,000)	(27,700)
Payments on term loan	(50,000)	(56,250)
Borrowings under revolving credit facilities	40,000	140,000
Payments under revolving credit facilities	(295,000)	(75,000)
Borrowings under long-term debt	400,000
Payment on long-term debt	(145,000)
Proceeds from sale-leaseback transactions		33,881
Payments on capital lease obligations	(13,389)	(9,660)
Payment of debt issuance costs	(15,033)
Payment for debt extinguishment	(8,148)
Contributions to consolidated company from affiliate noncontrolling interest	251	1,300
Net settlement of employee withholding taxes on vesting of Long-Term Incentive Plan	(2,988)	(1,336)
Cash contributions by General Partners	905	47
Distributions paid to Partners	(106,440)	(141,811)
Other	(337)
Net cash used in financing activities	(219,479)	(104,429)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(325)	16,941
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	39,782	33,431
CASH AND CASH EQUIVALENTS AT END OF PERIOD	39,457	50,372
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	11,469	14,873
Cash paid for income taxes	7	3
NON-CASH INVESTING AND FINANCING ACTIVITY:
Accounts payable for purchase of property, plant and equipment	10,643	1,740
Assets acquired by capital lease		35,994
Market value of common units issued under Long-Term Incentive and Directors Deferred Compensation Plans before minimum statutory tax withholding requirements	$ 8,149	$ 3,642

ORGANIZATION AND PRESENTATION

ORGANIZATION AND PRESENTATION	6 Months Ended
	Jun. 30, 2017
ORGANIZATION AND PRESENTATION
ORGANIZATION AND PRESENTATION	1. 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 managing general partner, and following the Exchange Transaction discussed below, its sole general partner. · References to "SGP" mean Alliance Resource GP, LLC, ARLP's special general partner until the Exchange Transaction discussed below. · References to "Intermediate Partnership" mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P. · References to "Alliance Resource Properties" mean Alliance Resource Properties, LLC, the land-holding company for the mining operations of Alliance Resource Operating Partners, L.P. · References to "Alliance Coal" mean Alliance Coal, LLC, the holding company for the mining operations of Alliance Resource Operating Partners, L.P., also referred to as our primary operating subsidiary. · References to "AHGP" mean Alliance Holdings GP, L.P., individually as the parent company, and not on a consolidated basis. · References to "AGP" mean Alliance GP, LLC, the general partner of Alliance Holdings GP, L.P. 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 to acquire, upon completion of ARLP's initial public offering on August 19, 1999, certain coal production and marketing assets of Alliance Resource Holdings, Inc., a Delaware corporation ("ARH"), consisting of substantially all of ARH's operating subsidiaries, but excluding ARH. ARH is owned by Joseph W. Craft III, the President and Chief Executive Officer and a Director of our managing general partner, and Kathleen S. Craft. SGP, a Delaware limited liability company, is owned by ARH and, as of June 30, 2017, held a 0.01% general partner interest in each of ARLP and the Intermediate Partnership. We are managed by MGP, a Delaware limited liability company, which, as of June 30, 2017, held a 0.99% and a 1.0001% managing general partner interest in ARLP and the Intermediate Partnership, respectively, and a 0.001% managing member interest in Alliance Coal. AHGP is a Delaware limited partnership that was formed to become the owner and controlling member of MGP. AHGP completed its initial public offering on May 15, 2006. AHGP owns directly and indirectly 100% of the members' interest of MGP and as of June 30, 2017, the incentive distribution rights ("IDR") in ARLP and 31,088,338 common units of ARLP. ARLP and its consolidated subsidiaries represent virtually all the net assets and operations of AHGP. Exchange Transaction On July 28, 2017, MGP contributed to ARLP all of its IDRs and its general partner interest in ARLP in exchange for 56,100,000 ARLP common units and a non-economic general partner interest in ARLP. In conjunction with this transaction and on the same economic basis as MGP, SGP also contributed to ARLP its 0.01% general partner interests in both ARLP and the Intermediate Partnership in exchange for 7,181 ARLP common units (collectively the "Exchange Transaction"). In connection with the Exchange Transaction, ARLP amended its partnership agreement to reflect, among other things, cancellation of the IDRs and the economic general partner interest in ARLP and issuance of a non-economic general partner interest to MGP. MGP is the sole general partner of ARLP following the Exchange Transaction, and no control, management or governance changes otherwise occurred. ARLP now has 130,704,217 common units outstanding and AHGP now owns directly and indirectly 87,188,338 ARLP common units and a non-economic managing general partner interest in ARLP. AHGP continues to own, through MGP, its 1.0001% managing general partner interest in the Intermediate Partnership and its 0.001% managing member interest in Alliance Coal. Simultaneously with the Exchange Transaction discussed above, MGP became a wholly-owned subsidiary of MGP II, LLC ("MGP II") which is owned 100% directly and indirectly by AHGP and was created in connection with the Exchange Transaction. MGP II now holds the 56,100,000 ARLP common units discussed above. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present the consolidated financial position as of June 30, 2017 and December 31, 2016, the results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016, and cash flows for the six months ended June 30, 2017 and 2016 of ARLP, the Intermediate Partnership (a subsidiary of ARLP and a variable interest entity of which ARLP is the primary beneficiary), Alliance Coal (a subsidiary of the Intermediate Partnership and a variable interest entity of which the Intermediate Partnership is the primary beneficiary) and other directly and indirectly wholly- and majority-owned subsidiaries of the Intermediate Partnership and Alliance Coal. The Intermediate Partnership, Alliance Coal and their wholly- and majority-owned subsidiaries represent virtually all the net assets of the ARLP Partnership. For the periods presented, MGP's interests in both Alliance Coal and the Intermediate Partnership and SGP's 0.01% interest in the Intermediate Partnership are reported as part of the general partner interest in the ARLP Partnership. All intercompany transactions and accounts have been eliminated. See Note 7 – Variable Interest Entities for more information regarding ARLP's consolidation of the Intermediate Partnership and Alliance Coal. See Note 9 – Net Income of ARLP Per Limited Partner Unit for more information regarding allocations to the limited and general partner interests. These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the results for the periods presented. Results presented for prior periods have been recast to reflect an immaterial reclassification of depreciation, depletion, and amortization capitalized into coal inventory as an adjustment to Depreciation, depletion, and amortization rather than Operating expenses (excluding depreciation, depletion, and amortization) . This reclassification did not impact Total operating expenses , Income from operations , Net income , Net income of ARLP or Basic and diluted net income of ARLP per limited partner unit . Results for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2017. 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 of 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, 2016. 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.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	6 Months Ended
	Jun. 30, 2017
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS	2. New Accounting Standards Issued and Adopted In January 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). The ASU simplifies the subsequent measurement of goodwill by eliminating the need for an entity to determine the implied fair value of goodwill to calculate an impairment charge. Under the new guidance an entity compares the fair value of the reporting unit containing the goodwill to its carrying value and records any excess carrying value as an impairment charge. This new standard is applied prospectively and is effective for annual and interim periods beginning after December 15, 2019; however, early adoption is permitted. We have early adopted this new standard and will apply the guidance to any future goodwill impairment assessments. In March 2016, the FASB issued ASU 2016-09, Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies the accounting for several aspects of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, flexibility in the accounting for forfeitures and classification on the statement of cash flows. ASU 2016-09 was effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. The adoption of ASU 2016-09 did not have a material impact on our condensed consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with the lower of cost or net realizable value test. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new standard was applied prospectively and was effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods, with early adoption permitted. The adoption of ASU 2015-11 did not have a material impact on our condensed consolidated financial statements. New Accounting Standards Issued and Not Yet Adopted In March 2017, the FASB issued ASU 2017-07, Compensation–Retirement Benefits (Topic 715) ("ASU 2017-07"). ASU 2017-07 requires that an employer disaggregate the service cost component from the other components of net benefit cost. It also provides explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allows only the service cost component of net benefit cost to be eligible for capitalization. The new guidance will be applied retroactively to all periods presented. ASU 2017-07 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. We are currently evaluating the effect of adopting ASU 2017-07, but do not anticipate it will have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments to require the use of a new forward-looking "expected loss" model that generally will result in earlier recognition of allowances for losses. The new standard will require disclosure of significantly more information related to these items. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for the fiscal year beginning after December 15, 2018, including interim periods. We are currently evaluating the effect of adopting ASU 2016-13, but do not anticipate it will have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 increases transparency and comparability among organizations by requiring lessees to record right-to-use assets and corresponding lease liabilities on the balance sheet and disclosing key information about lease arrangements. The new guidance will classify leases as either finance or operating (similar to current standard's "capital" or "operating" classification), with classification affecting the pattern of income recognition in the statement of income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the effect of adopting ASU 2016-02. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). ASU 2014-09 is a new revenue recognition standard that provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the new standard is as follows: An entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 was originally effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date ("ASU 2015-14"), which deferred the effective date by one year while providing the option to early adopt the standard on the original effective date. We developed an assessment team to determine the effect of adopting ASU 2014-09. As part of our assessment process, we applied the five-step analysis outlined in the new standard to certain contracts representative of the majority of our coal sales contracts and determined that our pattern of recognition appears consistent between both the new and existing standards. We also reviewed the expanded disclosure requirements under the new standard and determined the additional information to be disclosed. In addition, we reviewed our business processes, systems and internal controls over financial reporting to support the new recognition and disclosure requirements under the new standard. Based on the results of our assessment team, we have started our implementation of the new standard. We continue to report our implementation progress for the new standard to our management and audit committee of our managing general partner. We continue to monitor closely, a) activities of the FASB and various non-authoritative groups with respect to implementation issues that might impact our determinations, b) existing contracts for consistency with current implementation determinations derived from our assessment process and c) our revenue recognition policy, where applicable, for required modifications. We do not expect that the adoption of the new standard will have a material impact on our financial statements, but will require expanded disclosures including presenting, by type and by segment, revenues for all periods presented and expected revenues by year for performance obligations that are unsatisfied or partially unsatisfied as of the date of presentation. The new standard allows for two methods of adoption: a full retrospective adoption method and a modified retrospective method. We have elected to use the modified retrospective method of adoption which allows a cumulative effect adjustment to equity as of the date of adoption.

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Jun. 30, 2017
CONTINGENCIES
CONTINGENCIES	3. Various lawsuits, claims and regulatory proceedings incidental to our business are pending against the ARLP Partnership. We record accruals for potential losses related to these matters when, in management's opinion, such losses are 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 were different from management's current opinion and in amounts greater than our accruals, then they could have a material adverse effect.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2017
INVENTORIES
INVENTORIES	4. Inventories consist of the following: June 30, December 31, 2017 2016 (in thousands) Coal $ 79,033 $ 29,242 Supplies (net of reserve for obsolescence of $4,923 and $4,940, respectively) 35,984 31,809 Total inventories, net $ 115,017 $ 61,051

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2017
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	5. The following table summarizes our fair value measurements within the hierarchy: June 30, 2017 December 31, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Measured on a recurring basis: Contingent consideration $ — $ — $ 9,700 $ — $ — $ 9,700 Additional disclosures: Long-term debt — 505,068 — — 559,509 — Total $ — $ 505,068 $ 9,700 $ — $ 559,509 $ 9,700 The carrying amounts for cash equivalents, accounts receivable, accounts payable, accrued and other liabilities, due from affiliates and due to affiliates approximate fair value due to the short maturity of those instruments. The estimated fair value of our long-term debt, including current maturities, is based on interest rates that we believe are currently available to us in active markets for issuance of debt with similar terms and remaining maturities (See Note 6 – Long-Term Debt). The fair value of debt, which is based upon these interest rates, is classified as a Level 2 measurement under the fair value hierarchy. The estimated fair value of our contingent consideration arrangement is based on a probability-weighted discounted cash flow model. The assumptions in the model include a risk-adjusted discount rate, forward coal sales price curves, cost of debt and probabilities of meeting certain contractual threshold coal sales prices. The fair value measurement is based on significant inputs not observable in active markets and thus represents a Level 3 fair value measurement under the fair value hierarchy.

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2017
LONG-TERM DEBT
LONG-TERM DEBT	6. Long-term debt consists of the following: Unamortized Discount and Principal Debt Issuance Costs June 30, December 31, June 30, December 31, 2017 2016 2017 2016 (in thousands) Revolving Credit facility $ — $ 255,000 $ (6,953) $ (453) Senior notes 400,000 — (7,161) — Series B senior notes — 145,000 — (101) Term loan — 50,000 — (126) Securitization facility 75,700 100,000 — — 475,700 550,000 (14,114) (680) Less current maturities (75,700) (150,000) — 126 Total long-term debt $ 400,000 $ 400,000 $ (14,114) $ (554) On January 27, 2017, our Intermediate Partnership entered into a Fourth Amended and Restated Credit Agreement (the "Credit Agreement") with various financial institutions for a revolving credit facility and term loan (the "Credit Facility"). The Credit Facility replaced the $250 million term loan ("Replaced Term Loan") and $700 million revolving credit facility ("Replaced Revolving Credit Facility") extended to the Intermediate Partnership on May 23, 2012 (the "Replaced Credit Agreement") by various banks and other lenders that would have expired on May 23, 2017. The Credit Agreement provided for a $776.5 million revolving credit facility, reducing to $494.75 million on May 23, 2017, including a sublimit of $125 million for the issuance of letters of credit and a sublimit of $15.0 million for swingline borrowings (the "Revolving Credit Facility"), and for a term loan with a remaining principal balance of $50.0 million (the "Term Loan"). The outstanding revolver balance and term loan balance under the Replaced Credit Agreement were deemed to have been advanced under the Credit Facility on January 27, 2017. On April 3, 2017, we entered into an amendment to the Credit Agreement (the "Amendment") to extend the termination date of the Revolving Credit Facility as to $461.25 million of commitments to May 23, 2021, eliminate the Cavalier Condition and the Senior Notes Condition (both as defined in the Credit Agreement) and effectuate certain other changes. In connection with the Amendment, we increased the commitments under the Revolving Credit Facility from $479.75 million to $494.75 million, effective May 23, 2017 (of which $33.5 million expire on May 23, 2019). We incurred debt issuance costs in 2017 of $7.7 million in connection with the Credit Agreement which were deferred and will be amortized as a component of interest expense over the remaining term. The Credit Agreement is guaranteed by all of the material direct and indirect subsidiaries of our Intermediate Partnership, and is secured by substantially all of the Intermediate Partnership’s assets. The Term Loan principal balance of $50.0 million was paid in full in May 2017. Borrowings under the Credit Facility bear interest, at the option of the Intermediate Partnership, at either (i) the Base Rate at the greater of three benchmarks or (ii) a Eurodollar Rate, plus margins for (i) or (ii), as applicable, that fluctuate depending upon the ratio of Consolidated Debt to Consolidated Cash Flow (each as defined in the Credit Agreement). We elected a Eurodollar Rate, which, with applicable margin, was 3.56% on borrowings outstanding as of June 30, 2017. At June 30, 2017, we had $8.1 million of letters of credit outstanding with $486.7 million available for borrowing under the Revolving Credit Facility. We currently incur an annual commitment fee of 0.35% on the undrawn portion of the Revolving Credit Facility. We utilize the Revolving Credit Facility, as appropriate, for working capital requirements, capital expenditures and investments in affiliates, scheduled debt payments and distribution payments. The Credit Agreement contains various restrictions affecting our Intermediate Partnership and its subsidiaries including, among other things, incurrence of additional indebtedness and liens, sale of assets, investments, mergers and consolidations and transactions with affiliates, in each case subject to various exceptions, and the payment of cash distributions by our Intermediate Partnership if such payment would result in a certain fixed charge coverage ratio (as defined in the Credit Agreement). The Amendment lowered this fixed charge ratio from less than 1.25 to 1.0 to 1.15 to 1.0 for each rolling four-quarter period and further limited the Intermediate Partnership’s ability to incur certain unsecured debt. See Note 7 – Variable Interest Entities for further discussion of restrictions on the cash available for distribution. The Amendment raised the debt to cash flow ratio from 2.25 to 1.0 to 2.50 to 1.0 and also removed the requirement for the Intermediate Partnership to remain in control of a certain amount of mineable coal reserves relative to its annual production. The Credit Agreement requires the Intermediate Partnership maintain (a) a debt to cash flow ratio of not more than 2.5 to 1.0 and (b) a cash flow to interest expense ratio of not less than 3.0 to 1.0, in each case, during the four most recently ended fiscal quarters. The debt to cash flow ratio and cash flow to interest expense ratio were 0.75 to 1.0 and 22.8 to 1.0, respectively, for the trailing twelve months ended June 30, 2017. We were in compliance with the covenants of the Credit Agreement as of June 30, 2017. On January 27, 2017, the Intermediate Partnership also amended the 2008 Note Purchase Agreement dated June 26, 2008, for $145.0 million of Series B Senior Notes which bore interest at 6.72% and were due to mature on June 26, 2018 with interest payable semi-annually (the "Series B Senior Notes"). The amendment provided for certain modifications to the terms and provisions of the Note Purchase Agreement, including granting liens on substantially all of the Intermediate Partnership's assets to secure its obligations under the Note Purchase Agreement on an equal basis with the obligations under the Credit Agreement. The amendment also modified certain covenants to align them with the applicable covenants in the Credit Agreement. As discussed below, we repaid the Series B Senior Notes in May 2017. On April 24, 2017, the Intermediate Partnership and Alliance Resource Finance Corporation (as co-issuer), a wholly owned subsidiary of the Intermediate Partnership ("Alliance Finance"), issued an aggregate principal amount of $400.0 million of senior unsecured notes due 2025 ("Senior Notes") in a private placement to qualified institutional buyers. The Senior Notes have a term of eight years, maturing on May 1, 2025 (the "Term") and accrue interest at an annual rate of 7.5%. Interest is payable semi-annually in arrears on each May 1 and November 1, commencing on November 1, 2017. 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. At any time prior to May 1, 2020, the issuers of the Senior Notes may redeem up to 35% of the aggregate principal amount of the Senior Notes with the net cash proceeds of one or more equity offerings at a redemption price equal to 107.5% of the principal amount redeemed, plus accrued and unpaid interest, if any, to the redemption date. The issuers of the Senior Notes may also redeem all or a part of the notes at any time on or after May 1, 2020, at redemption prices set forth in the indenture governing the Senior Notes. At any time prior to May 1, 2020, the issuers of the Senior Notes may redeem the Senior Notes at a redemption price equal to the principal amount of the Senior Notes plus a "make-whole" premium, plus accrued and unpaid interest, if any, to the redemption date. The net proceeds from issuance of the Senior Notes and cash on hand were used to repay the Revolving Credit Facility, Term Loan and Series B Senior Notes (including a make-whole payment of $8.1 million). We incurred discount and debt issuance costs of $7.3 million in connection with issuance of the Senior Notes which were deferred and will be amortized as a component of interest expense over the Term. On December 5, 2014, certain direct and indirect wholly-owned subsidiaries of our Intermediate Partnership entered into a $100.0 million accounts receivable securitization facility ("Securitization Facility"). Under the Securitization Facility, certain subsidiaries sell 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 $100.0 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 Eurodollar Rate. It was renewed in December 2016 and matures in December 2017. At June 30, 2017, we had $75.7 million outstanding under the Securitization Facility. On October 6, 2015, Cavalier Minerals JV, LLC ("Cavalier Minerals") (see Note 7 – Variable Interest Entities) entered into a credit agreement (the "Cavalier Credit Agreement") with Mineral Lending, LLC ("Mineral Lending") for a $100.0 million line of credit (the "Cavalier Credit Facility"). Mineral Lending is an entity owned by a) Alliance Resource Holdings II, Inc. ("ARH II," the parent of ARH), b) an entity owned by an officer of ARH who is also a director of ARH II ("ARH Officer") and c) foundations established by the President and Chief Executive Officer of MGP and Kathleen S. Craft. There is no commitment fee under the facility. Borrowings under the Cavalier Credit Facility bear interest at a one month LIBOR rate plus 6% with interest payable quarterly. Repayment of the principal balance will begin following the first fiscal quarter after the earlier of the date on which the aggregate amount borrowed exceeds $90.0 million or December 31, 2017, in quarterly payments of an amount equal to the greater of $1.3 million initially, escalated to $2.5 million after two years, or fifty percent of Cavalier Minerals' excess cash flow. The Cavalier Credit Facility matures September 30, 2024, at which time all amounts then outstanding are required to be repaid. To secure payment of the facility, Cavalier Minerals pledged all of its partnership interests, owned or later acquired, in AllDale Minerals, LP ("AllDale I") and AllDale Minerals II, LP ("AllDale II") (collectively "AllDale Minerals"). Cavalier Minerals may prepay the Cavalier Credit Facility at any time in whole or in part subject to terms and conditions described in the Cavalier Credit Agreement. As of June 30, 2017, Cavalier Minerals had not drawn on the Cavalier Credit Facility. Alliance Minerals, LLC ("Alliance Minerals") has the right to require Cavalier Minerals to draw the full amount available under the Cavalier Credit Facility and distribute the proceeds to the members of Cavalier Minerals, including Alliance Minerals.

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	6 Months Ended
	Jun. 30, 2017
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES	7. Cavalier Minerals On November 10, 2014, our subsidiary, Alliance Minerals, and Bluegrass Minerals Management, LLC ("Bluegrass Minerals") entered into a limited liability company agreement (the "Cavalier Agreement") to create Cavalier Minerals, which was formed to indirectly acquire oil and gas mineral interests, initially through its 71.7% noncontrolling ownership interest in AllDale I and subsequently through its 72.8% noncontrolling ownership interest in AllDale II. Bluegrass Minerals is owned and controlled by the ARH Officer discussed in Note 6 – Long-Term Debt and is Cavalier Minerals' managing member. Alliance Minerals and Bluegrass Minerals initially committed funding of $48.0 million and $2.0 million, respectively, to Cavalier Minerals, and Cavalier Minerals committed funding of $49.0 million to AllDale I. On October 6, 2015, Alliance Minerals and Bluegrass Minerals committed to fund an additional $96.0 million and $4.0 million, respectively, to Cavalier Minerals, and Cavalier Minerals committed to fund $100.0 million to AllDale II. Contributions in 2017 sufficiently completed funding to Cavalier Minerals for these commitments. Cavalier Minerals is not expected to call on further funding of these commitments from Alliance Minerals and Bluegrass Minerals. Contributions made from Alliance Minerals and Bluegrass Minerals to Cavalier Minerals for each period presented are as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Alliance Minerals Beginning cumulative commitment fulfilled $ 143,112 $ 82,977 $ 137,077 $ 63,498 Capital contributions - Cash — 12,096 6,035 31,176 Capital contributions - Net AllDale Minerals' distributions received by Cavalier Minerals (1) — 524 — 923 Ending cumulative commitment fulfilled 143,112 95,597 143,112 95,597 Remaining commitment 888 48,403 888 48,403 Total committed $ 144,000 $ 144,000 $ 144,000 $ 144,000 Bluegrass Minerals Beginning cumulative commitment fulfilled $ 5,963 $ 3,458 $ 5,712 $ 2,646 Capital contributions - Cash — 504 251 1,299 Capital contributions - Net AllDale Minerals' distributions received by Cavalier Minerals (1) — 21 — 38 Ending cumulative commitment fulfilled 5,963 3,983 5,963 3,983 Remaining commitment 37 2,017 37 2,017 Total committed $ 6,000 $ 6,000 $ 6,000 $ 6,000 (1) Represents distributions received from AllDale Minerals net of distributions reinvested and payments to Bluegrass Minerals for administration expense. In accordance with the Cavalier Agreement, Bluegrass Minerals is entitled to receive an incentive distribution from Cavalier Minerals equal to 25% of all distributions (including in liquidation) after all members have recovered their investment. The incentive distributions are reduced by certain distributions received by Bluegrass Minerals or its owner from AllDale Minerals Management, LLC ("AllDale Minerals Management"), the managing member of AllDale Minerals. Distributions paid to Alliance Minerals and Bluegrass Minerals from Cavalier Minerals for each period presented are as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Alliance Minerals $ 3,521 $ — $ 8,084 $ — Bluegrass Minerals 147 — 337 — Alliance Minerals' ownership interest in Cavalier Minerals at June 30, 2017 was 96%. The remainder of the equity ownership is held by Bluegrass Minerals. We have consolidated Cavalier Minerals' financial results as we concluded that Cavalier Minerals is a variable interest entity ("VIE") and we are the primary beneficiary because neither Bluegrass Minerals nor Alliance Minerals individually has both the power and the benefits related to Cavalier Minerals and we are most closely aligned with Cavalier Minerals through our substantial equity ownership. Bluegrass Minerals' equity ownership of Cavalier Minerals is accounted for as noncontrolling ownership interest in our condensed consolidated balance sheets. In addition, earnings attributable to Bluegrass Minerals are recognized as noncontrolling interest in our condensed consolidated statements of income. WKY CoalPlay On November 17, 2014, SGP Land, LLC ("SGP Land"), a wholly-owned subsidiary of SGP, and two limited liability companies ("Craft Companies") owned by irrevocable trusts established by the President and Chief Executive Officer of MGP entered into a limited liability company agreement to form WKY CoalPlay, LLC ("WKY CoalPlay"). WKY CoalPlay was formed, in part, to purchase and lease coal reserves. WKY CoalPlay is managed by the ARH Officer discussed in Note 6 – Long-Term Debt, who is also an employee of SGP Land and trustee of the irrevocable trusts owning the Craft Companies. In December 2014 and February 2015, we entered into various coal reserve leases with WKY CoalPlay. During the six months ended June 30, 2017, we paid $10.8 million of advanced royalties to WKY CoalPlay. As of June 30, 2017, we had $30.0 million of advanced royalties outstanding under the leases, which is reflected in the Advance royalties, net line items in our condensed consolidated balance sheets. We have concluded that WKY CoalPlay is a VIE because of our ability to exercise options to acquire reserves under lease with WKY CoalPlay, which is not within the control of the equity holders and, if it occurs, could potentially limit the expected residual return to the owners of WKY CoalPlay. We do not have any economic or governance rights related to WKY CoalPlay and our options that provide us with a variable interest in WKY CoalPlay's reserve assets do not give us any rights that constitute power to direct the primary activities that most significantly impact WKY CoalPlay's economic performance. SGP Land has the sole ability to replace the manager of WKY CoalPlay at its discretion and therefore has power to direct the activities of WKY CoalPlay. Consequently, we concluded that SGP Land is the primary beneficiary of WKY CoalPlay. Alliance Coal and the Intermediate Partnership Alliance Coal is a limited liability company designed to operate as the operating subsidiary of the Intermediate Partnership and holds the interests in the mining operations and Alliance Service, Inc. ("ASI"). The Intermediate Partnership is a limited partnership that holds the non-managing member interest in Alliance Coal and the sole member interests in Alliance Resource Properties, Alliance Minerals and other entities. Together Alliance Coal and the Intermediate Partnership and their subsidiaries represent virtually all the net assets of ARLP. Both the Intermediate Partnership and Alliance Coal were designed to operate as the operating subsidiaries of ARLP and to distribute available cash to ARLP so that ARLP can distribute available cash to its partners. We considered MGP's and ARLP's ownership in the Intermediate Partnership and MGP's and the Intermediate Partnership's ownership in Alliance Coal separately for the purposes of determining whether the Intermediate Partnership and Alliance Coal are VIEs. The Intermediate Partnership holds a 99.999% non-managing interest and MGP holds the 0.001% managing member interest in Alliance Coal. To determine whether Alliance Coal is a VIE, we considered that since Alliance Coal is structured as the equivalent of a limited partnership with the non-managing member 1) not having the ability to remove its managing member and 2) not participating significantly in the operational decisions, Alliance Coal represents a VIE. We determined that neither the MGP nor the Intermediate Partnership have both the power and the benefits related to Alliance Coal. We then considered which of the two was most closely aligned with Alliance Coal and thus would be designated the primary beneficiary of Alliance Coal for consolidation purposes. We determined that the Intermediate Partnership was most closely aligned with Alliance Coal and is the primary beneficiary. We based our determination of alignment on 1) the purpose and design of Alliance Coal which is to a) be the operating subsidiary of the Intermediate Partnership and b) distribute all of its available cash to the Intermediate Partnership such that the Intermediate Partnership can pay its partners and debt obligations, 2) AHGP's common control over both the Intermediate Partnership and MGP, as discussed in Note 1 – Organization and Presentation, to achieve the aforementioned purpose and design and 3) the Intermediate Partnership's debt funding for Alliance Coal for capital expenditures, operations and other purposes as needed and related risks and collateral requirements in the debt arrangements. ARLP holds a 98.9899% limited partnership interest in the Intermediate Partnership and MGP holds the 1.0001% managing general partner interest in the Intermediate Partnership. To determine whether the Intermediate Partnership is a VIE, we considered that since the Intermediate Partnership is structured as a limited partnership with the limited partner 1) not having the ability to remove its general partner and 2) not participating significantly in the operational decisions, the Intermediate Partnership represents a VIE. We determined that neither the MGP nor ARLP have both the power and the benefits related to Intermediate Partnership. We then considered which of the two was most closely aligned with the Intermediate Partnership and thus would be designated the primary beneficiary of the Intermediate Partnership for consolidation purposes. We determined that ARLP was most closely aligned with the Intermediate Partnership and is the primary beneficiary. We based our determination of alignment on 1) the purpose and design of the Intermediate Partnership which is to a) be the operating subsidiary to ARLP and b) distribute all of its available cash to ARLP to pay its partners and 2) AHGP's common control over ARLP, MGP and the Intermediate Partnership, as discussed in Note 1 – Organization and Presentation, to achieve the aforementioned purpose and design. The effect of the partnership agreements of ARLP and the Intermediate Partnership and the operating agreement of Alliance Coal (collectively the "Agreements") is that on a quarterly basis 100% of available cash from our operations must be distributed by ARLP to its partners (apart from certain nominal distributions from the Intermediate Partnership and Alliance Coal). Available cash is determined as defined in the Agreements and represents all cash with the exception of cash reserves (i) for the proper conduct of the business including reserves for future capital expenditures and for anticipated credit needs of the Partnership Group, (ii) to comply with debt obligations or (iii) to provide funds for certain subsequent distributions. Cash reserves may not be established for the purpose of funding subsequent distributions if the effect would be to prevent ARLP from making the minimum quarterly distributions plus any cumulative distribution arrearage. MGP, as the managing member of Alliance Coal and the managing general partner of the Intermediate Partnership, is responsible for distributing this cash to ARLP so it can meet its distribution requirements. As discussed in Note 6 – Long-Term Debt, the Intermediate Partnership's debt covenants place additional restrictions on distributions to ARLP by limiting cash available for distribution from the Intermediate Partnership based on various debt covenants pertaining to the most recent preceding quarter. MGP does not have the ability, without the consent of the limited partners, to amend the Agreements.

EQUITY INVESTMENTS

EQUITY INVESTMENTS	6 Months Ended
	Jun. 30, 2017
EQUITY INVESTMENTS
EQUITY INVESTMENT	8. AllDale Minerals In November 2014, Cavalier Minerals (see Note 7 – Variable Interest Entities), was created to indirectly purchase, through its equity investments in AllDale Minerals, oil and gas mineral interests in various geographic locations within producing basins in the continental U.S. In February 2017, Alliance Minerals committed to directly (rather than through Cavalier Minerals) invest $30.0 million in AllDale Minerals III, LP ("AllDale III") which was created for similar investment purposes. We continually review all rights provided to Cavalier Minerals and us by various agreements and continue to conclude all such rights do not provide Cavalier Minerals or us the ability to unilaterally direct any of the activities of AllDale Minerals or AllDale III (collectively, the "AllDale Partnerships") that most significantly impact the economic performance of the AllDale Partnerships. As such, we account for our ownership interest in the income or loss of the AllDale Partnerships as equity investments and it is so reflected in our condensed consolidated financial statements. We record equity income or loss based on the AllDale Partnerships' individual distribution structures. The changes in our aggregate equity investment in the AllDale Partnerships for each of the periods presented were as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Beginning balance $ 147,052 $ 84,234 $ 138,817 $ 64,509 Contributions 3,300 13,017 12,587 33,185 Equity in income (loss) of affiliates 2,916 (37) 6,616 (64) Distributions received (3,676) (544) (8,428) (960) Ending balance $ 149,592 $ 96,670 $ 149,592 $ 96,670

NET INCOME OF ARLP PER LIMITED

NET INCOME OF ARLP PER LIMITED PARTNER UNIT	6 Months Ended
	Jun. 30, 2017
NET INCOME OF ARLP PER LIMITED PARTNER UNIT
NET INCOME OF ARLP PER LIMITED PARTNER UNIT	9. We utilize the two-class method in calculating basic and diluted earnings per unit ("EPU"). Net income of ARLP is allocated to the general partners and limited partners in accordance with their respective partnership percentages, after giving effect to any special income or expense allocations, including incentive distributions to our managing general partner. On July 28, 2017, MGP contributed to ARLP all of its IDRs and its general partner interest in ARLP in exchange for 56,100,000 ARLP common units and a non-economic general partner interest in ARLP. In conjunction with this transaction and on the same economic basis as MGP, SGP also contributed to ARLP its 0.01% general partner interests in both ARLP and the Intermediate Partnership in exchange for 7,181 ARLP common units. In connection with the Exchange Transaction, ARLP amended its partnership agreement to reflect, among other things, cancellation of the IDRs and the economic general partner interest in ARLP and issuance of a non-economic general partner interest to MGP. ARLP now has 130,704,217 common units outstanding. Under the IDR provisions of our partnership agreement prior to the Exchange Transaction, our managing general partner was entitled to receive 15% of the amount we distributed in excess of $0.1375 per unit, 25% of the amount we distributed in excess of $0.15625 per unit, and 50% of the amount we distributed in excess of $0.1875 per unit. Beginning with distributions declared for the three months ended June 30, 2017, payable in August 2017, we will no longer pay the IDR distribution. Outstanding 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 ("Deferred Compensation Plan") include rights to nonforfeitable distributions or distribution equivalents and are therefore considered participating securities. As such, we allocate undistributed and distributed earnings to these outstanding awards in our calculation of EPU. The following is a reconciliation of net income of ARLP used for calculating basic earnings per unit and the weighted-average units used in computing EPU for the three and six months ended June 30, 2017 and 2016: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands, except per unit data) Net income of ARLP $ 63,230 $ 82,713 $ 168,132 $ 130,023 Adjustments: Managing general partner's priority distributions (1) — (19,159) (19,216) (38,318) General partners' equity ownership (1) (604) (1,271) (2,334) (1,834) General partners' special allocation of certain general and administrative expenses — — 800 — Limited partners' interest in net income of ARLP 62,626 62,283 147,382 89,871 Less: Distributions to participating securities (1,103) (878) (2,069) (1,753) Undistributed earnings attributable to participating securities — (782) (1,357) (582) Net income of ARLP available to limited partners $ 61,523 $ 60,623 $ 143,956 $ 87,536 Weighted-average limited partner units outstanding – basic and diluted 74,597 74,375 74,550 74,333 Basic and diluted net income of ARLP per limited partner unit (2) $ 0.82 $ 0.82 $ 1.93 $ 1.18 Pro forma basic and diluted net income of ARLP per limited partner unit (3) $ 0.47 $ 0.62 $ 1.26 $ 0.97 (1) Amounts for the three and six months ended June 30, 2017 reflect the impact of the Exchange Transaction eliminating second quarter distributions that would have been paid on August 14, 2017 for the IDRs and the 0.99% general partner interest in ARLP, both of which were held by MGP prior to the Exchange Transaction. MGP maintained its 1.0001% general partner interest in the Intermediate Partnership and thus continues to receive the Intermediate Partnership quarterly distribution as prior to the Exchange Transaction. Because the Exchange Transaction occurred prior to the August 7, 2017 record date for ARLP’s second quarter distributions, all of the second quarter earnings less the Intermediate Partnership’s general partner interest were allocated to ARLP's limited partners. The Exchange Transaction also shifted SGP’s nominal general partnership interest for its second quarter earnings and subsequent distributions to a limited partner interest. (2) Diluted EPU gives effect to all dilutive potential common units outstanding during the period using the treasury stock method. Diluted EPU excludes all dilutive potential units calculated under the treasury stock method if their effect is anti-dilutive. The combined total of LTIP, SERP and Deferred Compensation Plan units of 1,355 and 1,401 for the three and six months ended June 30, 2017, respectively, and 699 and 488 for the three and six months ended June 30, 2016, respectively, were considered anti-dilutive under the treasury stock method. (3) Pro forma amounts reflect basic and diluted EPU as if the Exchange Transaction had occurred as of January 1, 2016. Accordingly, the pro forma amounts reflect net income allocations as if distributions had been made based on the limited and general partner interests outstanding as a result of the Exchange Transaction, resulting in pro forma net income of ARLP available to limited partners of $61.5 million and $164.5 million for the three and six months ended June 30, 2017, respectively, and $80.6 million and $126.8 million for the three and six months ended June 30, 2016, respectively. Pro forma amounts also reflect the impact on the weighted average units outstanding during the periods as a result of the issuance of 56,107,181 ARLP common units in the Exchange Transaction. During the six months ended June 30, 2017, an affiliated entity controlled by Mr. Craft made a capital contribution of $0.8 million to AHGP for the purpose of funding certain general and administrative expenses. Upon AHGP's receipt of the contribution, it contributed the same to its subsidiary MGP, our managing general partner, which in turn contributed the same to our subsidiary, Alliance Coal. As provided under our partnership agreement, we made a special allocation to our managing general partner of certain general and administrative expenses equal to its contribution. Net income of ARLP allocated to the limited partners was not burdened by this expense.

WORKERS' COMPENSATION AND PNEUM

WORKERS' COMPENSATION AND PNEUMOCONIOSIS	6 Months Ended
	Jun. 30, 2017
WORKERS' COMPENSATION AND PNEUMOCONIOSIS
WORKERS' COMPENSATION AND PNEUMOCONIOSIS	10. The changes in the workers' compensation liability, including current and long-term liability balances, for each of the periods presented were as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Beginning balance $ 47,600 $ 55,564 $ 48,131 $ 54,558 Accruals increase 12,700 2,187 14,674 5,424 Payments (2,517) (3,265) (5,442) (5,988) Interest accretion 420 492 840 984 Valuation loss (1) 1,778 1,425 1,778 1,425 Ending balance $ 59,981 $ 56,403 $ 59,981 $ 56,403 (1) Our liability for the estimated present value of current workers′ compensation benefits is based on our actuarial estimates. Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claim development patterns, mortality, medical costs and interest rates. We conducted a mid-year review of our actuarial assumptions which resulted in a valuation loss in 2017 primarily attributable to a decrease in the discount rate used to calculate the estimated present value of future obligations from 3.52% at December 31, 2016 to 3.38% at June 30, 2017 and unfavorable changes in claims development. Our mid-year 2016 actuarial review resulted in a valuation loss primarily attributable to a decrease in the discount rate used to calculate the estimated present value of future obligations from 3.63% at December 31, 2015 to 2.89% at June 30, 2016, partially offset by favorable changes in claims development. Certain of our mine operating entities are liable under state statutes and the Federal Coal Mine Health and Safety Act of 1969, as amended, to pay pneumoconiosis, or black lung, benefits to eligible employees and former employees and their dependents. Components of the net periodic benefit cost for each of the periods presented are as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Service cost $ 556 $ 644 $ 1,102 $ 1,292 Interest cost 628 626 1,257 1,253 Amortization of net actuarial gain (1) (567) (661) (1,134) (1,322) Net periodic benefit cost $ 617 $ 609 $ 1,225 $ 1,223 (1) Amortization of net actuarial gain is included in the Operating expenses (excluding depreciation, depletion and amortization) line item within our condensed consolidated statements of income. .

COMPENSATION PLANS

COMPENSATION PLANS	6 Months Ended
	Jun. 30, 2017
COMPENSATION PLANS
COMPENSATION PLANS	11. Long-Term Incentive Plan We have the LTIP for certain employees and officers of MGP and its affiliates who perform services for us. The LTIP awards are grants of non-vested "phantom" or notional units, also referred to as "restricted units", which upon satisfaction of time and performance-based vesting requirements, entitle the LTIP participant to receive ARLP common units. Annual grant levels and vesting provisions for designated participants are recommended by the President and Chief Executive Officer of MGP, subject to review and approval of the compensation committee of the MGP board of directors (the "Compensation Committee"). Vesting of all grants outstanding are subject to the satisfaction of certain financial tests, which management currently believes are probable. Grants issued to LTIP participants are expected to cliff vest on January 1st of the third year following issuance of the grants. We expect to settle the non-vested LTIP grants by delivery of ARLP common units, except for the portion of the grants that will satisfy tax withholding obligations of LTIP participants. As provided under the distribution equivalent rights provisions of the LTIP and the terms of the LTIP awards, all non-vested grants include contingent rights to receive quarterly distributions in cash or, in the case of the 2016 and 2017 grants, at the discretion of the Compensation Committee, cash or in lieu of cash, phantom units credited to a bookkeeping account with value, equal to the cash distributions we make to unitholders during the vesting period. A summary of non-vested LTIP grants as of and for the six months ended June 30, 2017 is as follows: Number of units Weighted average grant date fair value per unit Intrinsic value (in thousands) Non-vested grants at January 1, 2017 1,604,748 $ $ 36,027 Granted Vested (1) Forfeited Non-vested grants at June 30, 2017 31,905 (1) During the six months ended June 30, 2017, we issued 222,011 unrestricted common units to the LTIP participants. The remaining vested units were settled in cash to satisfy tax withholding obligations of the LTIP participants. LTIP expense was $2.8 million and $3.0 million for the three months ended June 30, 2017 and 2016, respectively, and $5.4 million and $5.9 million for the six months ended June 30, 2017 and 2016, respectively. The total obligation associated with the LTIP as of June 30, 2017 was $16.1 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets. As of June 30, 2017, there was $17.0 million in total unrecognized compensation expense related to the non-vested LTIP grants that are expected to vest. That expense is expected to be recognized over a weighted-average period of 1.6 years. After consideration of the January 1, 2017 vesting and subsequent issuance of 222,011 common units, approximately 2.5 million units remain available under the LTIP for issuance in the future, assuming all grants issued in 2017, 2016 and 2015 and currently outstanding are settled with common units, without reduction for tax withholding, and no future forfeitures occur. Supplemental Executive Retirement Plan and Directors Deferred Compensation Plan We utilize the SERP to provide deferred compensation benefits for certain officers and key employees. All allocations made to participants under the SERP are made in the form of "phantom" ARLP units and SERP distributions will be settled in the form of ARLP common units. The SERP is administered by the Compensation Committee. Our directors participate in the Deferred Compensation Plan. Pursuant to the Deferred Compensation Plan, for amounts deferred either automatically or at the election of the director, a notional account is established and credited with notional common units of ARLP, described in the Deferred Compensation Plan as "phantom" units. Distributions from the Deferred Compensation Plan will be settled in the form of ARLP common units. For both the SERP and Deferred Compensation Plan, when quarterly cash distributions are made with respect to ARLP common units, an amount equal to such quarterly distribution is credited to each participant's notional account as additional phantom units. All grants of phantom units under the SERP and Deferred Compensation Plan vest immediately. A summary of SERP and Deferred Compensation Plan activity as of and for the six months ended June 30, 2017 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, 2017 494,018 $ $ 11,091 Granted Phantom units outstanding as of June 30, 2017 9,796 Total SERP and Deferred Compensation Plan expense was $0.4 million and $0.3 million for the three months ended June 30, 2017 and 2016, respectively, and $0.7 million and $0.6 million for the six months ended June 30, 2017 and 2016, respectively. As of June 30, 2017, the total obligation associated with the SERP and Deferred Compensation Plan was $15.3 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets.

COMPONENTS OF PENSION PLAN NET

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS	6 Months Ended
	Jun. 30, 2017
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS	12. 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 effective January 31, 2017, participants within the Pension Plan ("Participants") are no longer receiving benefit accruals for service. The amendment did not affect pension benefits accrued prior to January 31, 2017. The benefit formula for the Pension Plan is a fixed dollar unit based on years of service. Components of the net periodic benefit cost for each of the periods presented are as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Service cost $ — $ 598 $ — $ 1,196 Interest cost 1,135 1,131 2,270 2,263 Expected return on plan assets (1,251) (1,287) (2,503) (2,574) Amortization of prior service cost (1) 47 — 94 — Amortization of net loss (1) 772 789 1,545 1,578 Net periodic benefit cost $ 703 $ 1,231 $ 1,406 $ 2,463 (1) Amortization of prior service cost and net actuarial loss is included in the Operating expenses (excluding depreciation, depletion and amortization) line item within our condensed consolidated statements of income. During the six months ended June 30, 2017, we made contribution payments of $0.7 million to the Pension Plan for the 2016 plan year and $0.6 million for the 2017 plan year. On July 17, 2017, we made a contribution payment of $0.6 million for the 2017 plan year.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2017
SEGMENT INFORMATION
SEGMENT INFORMATION	13. We operate in the eastern U.S. as a producer and marketer of coal to major utilities and industrial users. We aggregate multiple operating segments into two reportable segments, Illinois Basin and Appalachia, and we have an "all other" category referred to as Other and Corporate. Our reportable segments correspond to major coal producing regions in the eastern U.S. Similar economic characteristics for our operating segments within each of these two reportable segments generally include coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues. The Illinois Basin reportable segment is comprised of multiple operating segments, including current operating mining complexes a) Webster County Coal, LLC's Dotiki mining complex, b) Gibson County Coal, LLC's mining complex, which includes the Gibson North (currently idled) and Gibson South mines, c) Warrior Coal, LLC's mining complex, d) River View Coal, LLC's mining complex and e) Hamilton County Coal, LLC's mining complex. The Gibson North mine has been idled since the fourth quarter of 2015 in response to market conditions. The Illinois Basin reportable segment also includes White County Coal, LLC's Pattiki mining complex ("Pattiki"), Hopkins County Coal, LLC's mining complex, which includes the Elk Creek mine, the Pleasant View surface mineable reserves and the Fies underground project, Sebree Mining, LLC's mining complex ("Sebree"), which includes the Onton mine, Steamport, LLC and certain Sebree reserves, CR Services, LLC, CR Machine Shop, LLC, certain properties and equipment of Alliance Resource Properties, ARP Sebree, LLC, ARP Sebree South, LLC and UC Coal, LLC and its subsidiaries, UC Mining, LLC and UC Processing, LLC (collectively "UC Coal"). The Pattiki mine ceased production in December 2016. The Elk Creek mine depleted its reserves in March 2016 and ceased production on April 1, 2016. Our Onton mine has been idled since the fourth quarter of 2015 in response to market conditions. UC Coal equipment assets acquired in 2015 continue to be deployed as needed at various Illinois Basin operating mines. The Appalachia reportable segment is comprised of multiple operating segments, including the Mettiki mining complex, the Tunnel Ridge, LLC mining complex and the MC Mining, LLC mining complex. The Mettiki mining complex includes Mettiki Coal (WV), LLC's Mountain View mine and Mettiki Coal, LLC's preparation plant. Other and Corporate includes marketing and administrative activities, ASI and its subsidiary, Matrix Design Group, LLC and its subsidiaries Matrix Design International, LLC and Matrix Design Africa (PTY) LTD ("Matrix Design"), Alliance Design Group, LLC ("Alliance Design") (collectively, the Matrix Design entities and Alliance Design are referred to as the "Matrix Group"), ASI's ownership of aircraft, the Mt. Vernon Transfer Terminal, LLC ("Mt. Vernon") dock activities, Alliance Coal's coal brokerage activity, Mid-America Carbonates, LLC ("MAC"), certain of Alliance Resource Properties' land and mineral interest activities, Pontiki Coal, LLC's throughput receivables and prior workers' compensation and pneumoconiosis liabilities, Wildcat Insurance, LLC ("Wildcat Insurance"), Alliance Minerals, and its affiliate, Cavalier Minerals (Note 7 – Variable Interest Entities), both of which hold equity investments in various AllDale Partnerships (Note 8 – Equity Investment), AROP Funding and our new subsidiary formed March 30, 2017, Alliance Finance (both discussed in Note 6 - Long-Term Debt). On July 19, 2017, Alliance Minerals purchased $100 million of Series A-1 Preferred Interests from Kodiak Gas Services, LLC ("Kodiak") (Note 14 – Subsequent Events). Reportable segment results as of and for the three and six months ended June 30, 2017 and 2016 are presented below. Illinois Other and Elimination Basin Appalachia Corporate (1) Consolidated (in thousands) Three Months Ended June 30, 2017 Revenues - Outside $ 232,484 $ 135,706 $ 30,530 $ — $ Revenues - Intercompany 17,089 — 3,895 — Total revenues (2) 249,573 135,706 34,425 (20,984) 398,720 Segment Adjusted EBITDA Expense (3) 150,299 83,619 23,123 Segment Adjusted EBITDA (4)(5) 93,288 50,744 14,218 Capital expenditures 22,927 13,261 983 — Three Months Ended June 30, 2016 Revenues - Outside $ 285,557 $ 136,409 $ 17,184 $ — $ Revenues - Intercompany 10,323 1,625 4,393 — Total revenues (2) 295,880 138,034 21,577 (16,341) 439,150 Segment Adjusted EBITDA Expense (3) 161,045 88,003 16,165 Segment Adjusted EBITDA (4) 130,846 48,532 5,380 Capital expenditures 12,357 4,348 164 — Six Months Ended June 30, 2017 Revenues - Outside $ 496,834 $ 305,950 $ 57,016 $ — $ Revenues - Intercompany 28,294 — 8,008 — Total revenues (2) 525,128 305,950 65,024 (36,302) 859,800 Segment Adjusted EBITDA Expense (3) 311,736 178,936 40,961 Segment Adjusted EBITDA (4)(5) 199,551 123,931 30,679 Total assets (6) 1,445,624 473,699 369,185 Capital expenditures 40,116 26,041 1,360 — Six Months Ended June 30, 2016 Revenues - Outside $ 561,575 $ 252,554 $ 37,850 $ — $ Revenues - Intercompany 22,181 3,806 8,897 — Total revenues (2) 583,756 256,360 46,747 (34,884) 851,979 Segment Adjusted EBITDA Expense (3) 339,688 167,732 36,911 Segment Adjusted EBITDA (4) 235,618 85,202 9,608 Total assets (6) 1,658,518 516,584 358,569 Capital expenditures 30,371 17,011 1,220 — (1) The elimination column represents the elimination of intercompany transactions and is primarily comprised of sales from the Matrix Group and MAC to our mining operations, coal sales and purchases between operations within different segments, sales of receivables to AROP Funding and insurance premiums paid to Wildcat Insurance. (2) Revenues included in the Other and Corporate column are primarily attributable to the Matrix Group revenues, Mt. Vernon transloading revenues, administrative service revenues from affiliates, MAC revenues, Wildcat Insurance revenues and brokerage coal sales. (3) Segment Adjusted EBITDA Expense includes operating expenses, coal purchases and other income. Transportation expenses are excluded as these expenses are passed through to our customers and consequently we do not realize any gain or loss on transportation revenues. We review Segment Adjusted EBITDA Expense per ton for cost trends. Results presented for Segment Adjusted EBITDA Expense for the three and six months ended June 30, 2016 have been recast to reflect a reclassification of depreciation and depletion capitalized into coal inventory as adjustments to Depreciation, depletion and amortization rather than Operating expenses (excluding depreciation, depletion and amortization) . The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to Operating expenses (excluding depreciation, depletion and amortization) : Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Segment Adjusted EBITDA Expense $ 238,279 $ 251,786 $ 499,773 $ 515,274 Other income 389 161 1,687 252 Operating expenses (excluding depreciation, depletion and amortization) $ 238,668 $ 251,947 $ 501,460 $ 515,526 (4) Segment Adjusted EBITDA is defined as net income (prior to the allocation of noncontrolling interest) before net interest expense, income taxes, depreciation, depletion and amortization, general and administrative expenses and debt extinguishment loss. Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments. Results presented for Segment Adjusted EBITDA for the three and six months ended June 30, 2016 have been recast to reflect a reclassification of depreciation and depletion capitalized into coal inventory as adjustments to Depreciation, depletion and amortization rather than Operating expenses (excluding depreciation, depletion and amortization) . Consolidated Segment Adjusted EBITDA is reconciled to net income as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Consolidated Segment Adjusted EBITDA $ 156,029 $ 181,845 $ 349,719 $ 324,601 General and administrative (14,944) (17,663) (30,977) (34,901) Depreciation, depletion and amortization (59,020) (73,697) (124,147) (144,304) Interest expense, net (10,561) (7,768) (18,053) (15,380) Debt extinguishment loss (8,148) — (8,148) — Income tax (expense) benefit (4) (6) 8 3 Net income $ 63,352 $ 82,711 $ 168,402 $ 130,019 (5) Includes equity in income of affiliates for the three and six months ended June 30, 2017 of $2.9 million and $6.6 million, respectively, in Other and Corporate. (6) Total assets for Other and Corporate include investments in affiliates of $149.6 million and $96.7 million at June 30, 2017 and 2016, respectively. .

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	14. On July 28, 2017, we declared a quarterly distribution for the quarter ended June 30, 2017, of $0.50 per unit, on all common units outstanding, totaling approximately $66.0 million, including distributions of $0.7 million to MGP with respect to its general partner interest in the Intermediate Partnership, payable on August 14, 2017 to all unitholders of record as of August 7, 2017. The common units being paid distributions include the additional units issued in the Exchange Transaction. For further discussions regarding the Exchange Transaction, see Note 1 – Organization and Presentation and Note 9 – Net Income of ARLP Per Limited Partner Unit. On July 19, 2017, Alliance Minerals purchased $100 million of Series A-1 Preferred Interests from Kodiak, a privately-held gas compression company providing large-scale, high-utilization compression assets to customers operating primarily in the Permian Basin. This structured investment provides us with a quarterly cash or payment-in-kind return, and our ownership interests in Kodiak are senior to all other Kodiak equity interests and subordinate only to Kodiak's senior secured debt facility. Other than the events described above and in Notes 1, 9, 12 and 13 there were no other subsequent events.

ORGANIZATION AND PRESENTATION (

ORGANIZATION AND PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2017
ORGANIZATION AND PRESENTATION
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present the consolidated financial position as of June 30, 2017 and December 31, 2016, the results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016, and cash flows for the six months ended June 30, 2017 and 2016 of ARLP, the Intermediate Partnership (a subsidiary of ARLP and a variable interest entity of which ARLP is the primary beneficiary), Alliance Coal (a subsidiary of the Intermediate Partnership and a variable interest entity of which the Intermediate Partnership is the primary beneficiary) and other directly and indirectly wholly- and majority-owned subsidiaries of the Intermediate Partnership and Alliance Coal. The Intermediate Partnership, Alliance Coal and their wholly- and majority-owned subsidiaries represent virtually all the net assets of the ARLP Partnership. For the periods presented, MGP's interests in both Alliance Coal and the Intermediate Partnership and SGP's 0.01% interest in the Intermediate Partnership are reported as part of the general partner interest in the ARLP Partnership. All intercompany transactions and accounts have been eliminated. See Note 7 – Variable Interest Entities for more information regarding ARLP's consolidation of the Intermediate Partnership and Alliance Coal. See Note 9 – Net Income of ARLP Per Limited Partner Unit for more information regarding allocations to the limited and general partner interests. These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the results for the periods presented. Results presented for prior periods have been recast to reflect an immaterial reclassification of depreciation, depletion, and amortization capitalized into coal inventory as an adjustment to Depreciation, depletion, and amortization rather than Operating expenses (excluding depreciation, depletion, and amortization) . This reclassification did not impact Total operating expenses , Income from operations , Net income , Net income of ARLP or Basic and diluted net income of ARLP per limited partner unit . Results for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2017. 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 of 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, 2016.
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.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2017
INVENTORIES
Schedule of inventories	June 30, December 31, 2017 2016 (in thousands) Coal $ 79,033 $ 29,242 Supplies (net of reserve for obsolescence of $4,923 and $4,940, respectively) 35,984 31,809 Total inventories, net $ 115,017 $ 61,051

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2017
FAIR VALUE MEASUREMENTS
Summary of fair value measurements within the hierarchy	June 30, 2017 December 31, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Measured on a recurring basis: Contingent consideration $ — $ — $ 9,700 $ — $ — $ 9,700 Additional disclosures: Long-term debt — 505,068 — — 559,509 — Total $ — $ 505,068 $ 9,700 $ — $ 559,509 $ 9,700

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2017
LONG-TERM DEBT
Schedule of long-term debt	Unamortized Discount and Principal Debt Issuance Costs June 30, December 31, June 30, December 31, 2017 2016 2017 2016 (in thousands) Revolving Credit facility $ — $ 255,000 $ (6,953) $ (453) Senior notes 400,000 — (7,161) — Series B senior notes — 145,000 — (101) Term loan — 50,000 — (126) Securitization facility 75,700 100,000 — — 475,700 550,000 (14,114) (680) Less current maturities (75,700) (150,000) — 126 Total long-term debt $ 400,000 $ 400,000 $ (14,114) $ (554)

VARIABLE INTEREST ENTITIES (Tab

VARIABLE INTEREST ENTITIES (Tables)	6 Months Ended
	Jun. 30, 2017
VARIABLE INTEREST ENTITIES
Schedule of contributions and commitments	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Alliance Minerals Beginning cumulative commitment fulfilled $ 143,112 $ 82,977 $ 137,077 $ 63,498 Capital contributions - Cash — 12,096 6,035 31,176 Capital contributions - Net AllDale Minerals' distributions received by Cavalier Minerals (1) — 524 — 923 Ending cumulative commitment fulfilled 143,112 95,597 143,112 95,597 Remaining commitment 888 48,403 888 48,403 Total committed $ 144,000 $ 144,000 $ 144,000 $ 144,000 Bluegrass Minerals Beginning cumulative commitment fulfilled $ 5,963 $ 3,458 $ 5,712 $ 2,646 Capital contributions - Cash — 504 251 1,299 Capital contributions - Net AllDale Minerals' distributions received by Cavalier Minerals (1) — 21 — 38 Ending cumulative commitment fulfilled 5,963 3,983 5,963 3,983 Remaining commitment 37 2,017 37 2,017 Total committed $ 6,000 $ 6,000 $ 6,000 $ 6,000 (1) Represents distributions received from AllDale Minerals net of distributions reinvested and payments to Bluegrass Minerals for administration expense.
Schedule of distributions	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Alliance Minerals $ 3,521 $ — $ 8,084 $ — Bluegrass Minerals 147 — 337 —

EQUITY INVESTMENT (Tables)

EQUITY INVESTMENT (Tables)	6 Months Ended
	Jun. 30, 2017
EQUITY INVESTMENTS
Schedule of changes in equity investment	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Beginning balance $ 147,052 $ 84,234 $ 138,817 $ 64,509 Contributions 3,300 13,017 12,587 33,185 Equity in income (loss) of affiliates 2,916 (37) 6,616 (64) Distributions received (3,676) (544) (8,428) (960) Ending balance $ 149,592 $ 96,670 $ 149,592 $ 96,670

NET INCOME OF ARLP PER LIMITE28

NET INCOME OF ARLP PER LIMITED PARTNER UNIT (Tables)	6 Months Ended
	Jun. 30, 2017
NET INCOME OF ARLP PER LIMITED PARTNER UNIT
Reconciliation of net income and EPU calculations	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands, except per unit data) Net income of ARLP $ 63,230 $ 82,713 $ 168,132 $ 130,023 Adjustments: Managing general partner's priority distributions (1) — (19,159) (19,216) (38,318) General partners' equity ownership (1) (604) (1,271) (2,334) (1,834) General partners' special allocation of certain general and administrative expenses — — 800 — Limited partners' interest in net income of ARLP 62,626 62,283 147,382 89,871 Less: Distributions to participating securities (1,103) (878) (2,069) (1,753) Undistributed earnings attributable to participating securities — (782) (1,357) (582) Net income of ARLP available to limited partners $ 61,523 $ 60,623 $ 143,956 $ 87,536 Weighted-average limited partner units outstanding – basic and diluted 74,597 74,375 74,550 74,333 Basic and diluted net income of ARLP per limited partner unit (2) $ 0.82 $ 0.82 $ 1.93 $ 1.18 Pro forma basic and diluted net income of ARLP per limited partner unit (3) $ 0.47 $ 0.62 $ 1.26 $ 0.97 (1) Amounts for the three and six months ended June 30, 2017 reflect the impact of the Exchange Transaction eliminating second quarter distributions that would have been paid on August 14, 2017 for the IDRs and the 0.99% general partner interest in ARLP, both of which were held by MGP prior to the Exchange Transaction. MGP maintained its 1.0001% general partner interest in the Intermediate Partnership and thus continues to receive the Intermediate Partnership quarterly distribution as prior to the Exchange Transaction. Because the Exchange Transaction occurred prior to the August 7, 2017 record date for ARLP’s second quarter distributions, all of the second quarter earnings less the Intermediate Partnership’s general partner interest were allocated to ARLP's limited partners. The Exchange Transaction also shifted SGP’s nominal general partnership interest for its second quarter earnings and subsequent distributions to a limited partner interest. (2) Diluted EPU gives effect to all dilutive potential common units outstanding during the period using the treasury stock method. Diluted EPU excludes all dilutive potential units calculated under the treasury stock method if their effect is anti-dilutive. The combined total of LTIP, SERP and Deferred Compensation Plan units of 1,355 and 1,401 for the three and six months ended June 30, 2017, respectively, and 699 and 488 for the three and six months ended June 30, 2016, respectively, were considered anti-dilutive under the treasury stock method. (3) Pro forma amounts reflect basic and diluted EPU as if the Exchange Transaction had occurred as of January 1, 2016. Accordingly, the pro forma amounts reflect net income allocations as if distributions had been made based on the limited and general partner interests outstanding as a result of the Exchange Transaction, resulting in pro forma net income of ARLP available to limited partners of $61.5 million and $164.5 million for the three and six months ended June 30, 2017, respectively, and $80.6 million and $126.8 million for the three and six months ended June 30, 2016, respectively. Pro forma amounts also reflect the impact on the weighted average units outstanding during the periods as a result of the issuance of 56,107,181 ARLP common units in the Exchange Transaction.

WORKERS' COMPENSATION AND PNE29

WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables)	6 Months Ended
	Jun. 30, 2017
Accrued Workers Compensation And Pneumoconiosis Benefits
Reconciliation of changes in workers' compensation liability	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Beginning balance $ 47,600 $ 55,564 $ 48,131 $ 54,558 Accruals increase 12,700 2,187 14,674 5,424 Payments (2,517) (3,265) (5,442) (5,988) Interest accretion 420 492 840 984 Valuation loss (1) 1,778 1,425 1,778 1,425 Ending balance $ 59,981 $ 56,403 $ 59,981 $ 56,403 (1) Our liability for the estimated present value of current workers′ compensation benefits is based on our actuarial estimates. Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claim development patterns, mortality, medical costs and interest rates. We conducted a mid-year review of our actuarial assumptions which resulted in a valuation loss in 2017 primarily attributable to a decrease in the discount rate used to calculate the estimated present value of future obligations from 3.52% at December 31, 2016 to 3.38% at June 30, 2017 and unfavorable changes in claims development. Our mid-year 2016 actuarial review resulted in a valuation loss primarily attributable to a decrease in the discount rate used to calculate the estimated present value of future obligations from 3.63% at December 31, 2015 to 2.89% at June 30, 2016, partially offset by favorable changes in claims development.
Pneumoconiosis benefits
Accrued Workers Compensation And Pneumoconiosis Benefits
Components of net periodic benefit cost	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Service cost $ 556 $ 644 $ 1,102 $ 1,292 Interest cost 628 626 1,257 1,253 Amortization of net actuarial gain (1) (567) (661) (1,134) (1,322) Net periodic benefit cost $ 617 $ 609 $ 1,225 $ 1,223 (1) Amortization of net actuarial gain is included in the Operating expenses (excluding depreciation, depletion and amortization) line item within our condensed consolidated statements of income. .

COMPENSATION PLANS (Tables)

COMPENSATION PLANS (Tables)	6 Months Ended
	Jun. 30, 2017
ARLP LTIP
Compensation Plans
Summary of activity in share-based plans	Number of units Weighted average grant date fair value per unit Intrinsic value (in thousands) Non-vested grants at January 1, 2017 1,604,748 $ $ 36,027 Granted Vested (1) Forfeited Non-vested grants at June 30, 2017 31,905 (1) During the six months ended June 30, 2017, we issued 222,011 unrestricted common units to the LTIP participants. The remaining vested units were settled in cash to satisfy tax withholding obligations of the LTIP participants.
SERP and Deferred Compensation Plans
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, 2017 494,018 $ $ 11,091 Granted Phantom units outstanding as of June 30, 2017 9,796

COMPONENTS OF PENSION PLAN NE31

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Tables)	6 Months Ended
	Jun. 30, 2017
Pension Plan
Employee Benefit Plans
Components of net periodic benefit cost	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Service cost $ — $ 598 $ — $ 1,196 Interest cost 1,135 1,131 2,270 2,263 Expected return on plan assets (1,251) (1,287) (2,503) (2,574) Amortization of prior service cost (1) 47 — 94 — Amortization of net loss (1) 772 789 1,545 1,578 Net periodic benefit cost $ 703 $ 1,231 $ 1,406 $ 2,463 (1) Amortization of prior service cost and net actuarial loss is included in the Operating expenses (excluding depreciation, depletion and amortization) line item within our condensed consolidated statements of income.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2017
SEGMENT INFORMATION
Schedule of reportable segment results	Illinois Other and Elimination Basin Appalachia Corporate (1) Consolidated (in thousands) Three Months Ended June 30, 2017 Revenues - Outside $ 232,484 $ 135,706 $ 30,530 $ — $ Revenues - Intercompany 17,089 — 3,895 — Total revenues (2) 249,573 135,706 34,425 (20,984) 398,720 Segment Adjusted EBITDA Expense (3) 150,299 83,619 23,123 Segment Adjusted EBITDA (4)(5) 93,288 50,744 14,218 Capital expenditures 22,927 13,261 983 — Three Months Ended June 30, 2016 Revenues - Outside $ 285,557 $ 136,409 $ 17,184 $ — $ Revenues - Intercompany 10,323 1,625 4,393 — Total revenues (2) 295,880 138,034 21,577 (16,341) 439,150 Segment Adjusted EBITDA Expense (3) 161,045 88,003 16,165 Segment Adjusted EBITDA (4) 130,846 48,532 5,380 Capital expenditures 12,357 4,348 164 — Six Months Ended June 30, 2017 Revenues - Outside $ 496,834 $ 305,950 $ 57,016 $ — $ Revenues - Intercompany 28,294 — 8,008 — Total revenues (2) 525,128 305,950 65,024 (36,302) 859,800 Segment Adjusted EBITDA Expense (3) 311,736 178,936 40,961 Segment Adjusted EBITDA (4)(5) 199,551 123,931 30,679 Total assets (6) 1,445,624 473,699 369,185 Capital expenditures 40,116 26,041 1,360 — Six Months Ended June 30, 2016 Revenues - Outside $ 561,575 $ 252,554 $ 37,850 $ — $ Revenues - Intercompany 22,181 3,806 8,897 — Total revenues (2) 583,756 256,360 46,747 (34,884) 851,979 Segment Adjusted EBITDA Expense (3) 339,688 167,732 36,911 Segment Adjusted EBITDA (4) 235,618 85,202 9,608 Total assets (6) 1,658,518 516,584 358,569 Capital expenditures 30,371 17,011 1,220 — (1) The elimination column represents the elimination of intercompany transactions and is primarily comprised of sales from the Matrix Group and MAC to our mining operations, coal sales and purchases between operations within different segments, sales of receivables to AROP Funding and insurance premiums paid to Wildcat Insurance. (2) Revenues included in the Other and Corporate column are primarily attributable to the Matrix Group revenues, Mt. Vernon transloading revenues, administrative service revenues from affiliates, MAC revenues, Wildcat Insurance revenues and brokerage coal sales. (3) Segment Adjusted EBITDA Expense includes operating expenses, coal purchases and other income. Transportation expenses are excluded as these expenses are passed through to our customers and consequently we do not realize any gain or loss on transportation revenues. We review Segment Adjusted EBITDA Expense per ton for cost trends. Results presented for Segment Adjusted EBITDA Expense for the three and six months ended June 30, 2016 have been recast to reflect a reclassification of depreciation and depletion capitalized into coal inventory as adjustments to Depreciation, depletion and amortization rather than Operating expenses (excluding depreciation, depletion and amortization) . The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to Operating expenses (excluding depreciation, depletion and amortization) : Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Segment Adjusted EBITDA Expense $ 238,279 $ 251,786 $ 499,773 $ 515,274 Other income 389 161 1,687 252 Operating expenses (excluding depreciation, depletion and amortization) $ 238,668 $ 251,947 $ 501,460 $ 515,526 (4) Segment Adjusted EBITDA is defined as net income (prior to the allocation of noncontrolling interest) before net interest expense, income taxes, depreciation, depletion and amortization, general and administrative expenses and debt extinguishment loss. Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments. Results presented for Segment Adjusted EBITDA for the three and six months ended June 30, 2016 have been recast to reflect a reclassification of depreciation and depletion capitalized into coal inventory as adjustments to Depreciation, depletion and amortization rather than Operating expenses (excluding depreciation, depletion and amortization) . Consolidated Segment Adjusted EBITDA is reconciled to net income as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Consolidated Segment Adjusted EBITDA $ 156,029 $ 181,845 $ 349,719 $ 324,601 General and administrative (14,944) (17,663) (30,977) (34,901) Depreciation, depletion and amortization (59,020) (73,697) (124,147) (144,304) Interest expense, net (10,561) (7,768) (18,053) (15,380) Debt extinguishment loss (8,148) — (8,148) — Income tax (expense) benefit (4) (6) 8 3 Net income $ 63,352 $ 82,711 $ 168,402 $ 130,019 (5) Includes equity in income of affiliates for the three and six months ended June 30, 2017 of $2.9 million and $6.6 million, respectively, in Other and Corporate. (6) Total assets for Other and Corporate include investments in affiliates of $149.6 million and $96.7 million at June 30, 2017 and 2016, respectively.
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Segment Adjusted EBITDA Expense $ 238,279 $ 251,786 $ 499,773 $ 515,274 Other income 389 161 1,687 252 Operating expenses (excluding depreciation, depletion and amortization) $ 238,668 $ 251,947 $ 501,460 $ 515,526
Reconciliation of consolidated Segment Adjusted EBITDA to net income	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Consolidated Segment Adjusted EBITDA $ 156,029 $ 181,845 $ 349,719 $ 324,601 General and administrative (14,944) (17,663) (30,977) (34,901) Depreciation, depletion and amortization (59,020) (73,697) (124,147) (144,304) Interest expense, net (10,561) (7,768) (18,053) (15,380) Debt extinguishment loss (8,148) — (8,148) — Income tax (expense) benefit (4) (6) 8 3 Net income $ 63,352 $ 82,711 $ 168,402 $ 130,019

ORGANIZATION AND PRESENTATION -

ORGANIZATION AND PRESENTATION - Organization (Details) - shares	Jul. 28, 2017	Jun. 30, 2017	Dec. 31, 2016
Ownership interests
ARLP common units outstanding		74,597,036	74,375,025
Subsequent event
Ownership interests
ARLP common units outstanding	130,704,217
AHGP | Subsequent event
Ownership interests
Units owned by parent	87,188,338
ARLP | SGP
Ownership interests
Ownership percentage by general partners		0.01%
ARLP | MGP
Ownership interests
Ownership percentage by general partners		0.99%
ARLP | AHGP
Ownership interests
Ownership percentage of managing general partner by parent		100.00%
Units owned by parent		31,088,338
Intermediate Partnership | SGP
Ownership interests
Ownership percentage by general partners		0.01%
Intermediate Partnership | MGP
Ownership interests
Ownership percentage by general partners		1.0001%
Alliance Coal | MGP
Ownership interests
Ownership percentage by general partners		0.001%
Intermediate Partnership | AHGP | Subsequent event
Ownership interests
Ownership percentage of managing general partner by parent	1.0001%
Alliance Coal | AHGP | Subsequent event
Ownership interests
Ownership percentage of managing general partner by parent	0.001%
MGP II | AHGP | Subsequent event
Ownership interests
Ownership percentage of managing general partner by parent	100.00%
Units owned by parent	56,100,000
Exchange Transaction | Subsequent event
Ownership interests
Common units issued in exchange	56,107,181
Exchange Transaction | MGP | Subsequent event
Ownership interests
Common units issued in exchange	56,100,000
Exchange Transaction | SGP | Subsequent event
Ownership interests
Common units issued in exchange	7,181
Exchange Transaction | SGP | Intermediate Partnership | Subsequent event
Ownership interests
Ownership percentage by general partners	0.01%

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
INVENTORIES
Coal	$ 79,033	$ 29,242
Supplies (net of reserve for obsolescence of $4,923 and $4,940, respectively)	35,984	31,809
Total inventory	115,017	61,051
Reserve for obsolescence	$ 4,923	$ 4,940

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Estimated fair value - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Level 2
FAIR VALUE MEASUREMENTS
Long-term debt	$ 505,068	$ 559,509
Total	505,068	559,509
Level 3
FAIR VALUE MEASUREMENTS
Total	9,700	9,700
Recurring | Level 3
FAIR VALUE MEASUREMENTS
Contingent consideration	$ 9,700	$ 9,700

LONG-TERM DEBT - Components (De

LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Principal
Long-term debt including current and non-current	$ 475,700	$ 550,000
Less current maturities	(75,700)	(150,000)
Total long-term debt	400,000	400,000
Unamortized Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(14,114)	(680)
Less current maturities		126
Total unamortized debt issuance costs	(14,114)	(554)
Series B Senior Notes
Principal
Long-term debt including current and non-current		145,000
Unamortized Debt Issuance Costs
Unamortized debt issuance costs including current and non-current		(101)
Senior notes
Principal
Long-term debt including current and non-current	400,000
Unamortized Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(7,161)
Securitization Facility
Principal
Long-term debt including current and non-current	75,700	100,000
Credit Agreement | Revolving credit facility
Unamortized Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	$ (6,953)
Replaced Credit Agreement | Replaced Revolving Credit Facility
Principal
Long-term debt including current and non-current		255,000
Unamortized Debt Issuance Costs
Unamortized debt issuance costs including current and non-current		(453)
Replaced Credit Agreement | Replaced Term Loan
Principal
Long-term debt including current and non-current		50,000
Unamortized Debt Issuance Costs
Unamortized debt issuance costs including current and non-current		$ (126)

LONG-TERM DEBT - ARLP Debt Arra

LONG-TERM DEBT - ARLP Debt Arrangements (Details)	Jan. 27, 2017USD ($)item	May 31, 2017USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Apr. 03, 2017USD ($)	Dec. 31, 2016USD ($)
Long-Term Debt
Outstanding			$ 475,700,000		$ 475,700,000		$ 550,000,000
Debt issuance costs incurred			15,033,000
Payments on term loan			50,000,000	$ 56,250,000
ARLP Debt Arrangements
Long-Term Debt
ARLP debt arrangements requirements, period over which the ratios are required to be maintained					12 months
Actual debt to cash flow ratio for trailing twelve months					0.75
Actual cash flow to interest expense ratio for trailing twelve months					22.8
Revolving credit facility | Reduced Commitment as of May 23. 2017
Long-Term Debt
Commitment expiring						$ 33,500,000
Series B Senior Notes
Long-Term Debt
Outstanding							145,000,000
Credit Agreement | Revolving credit facility
Long-Term Debt
Debt issuance costs incurred			7,700,000
Number of benchmarks | item	3
Letters of credit outstanding			8,100,000		$ 8,100,000
Line of credit facility, available for borrowing			$ 486,700,000		$ 486,700,000
Annual commitment fee percentage, undrawn portion			0.35%
Credit Agreement | Revolving credit facility | Eurodollar Rate
Long-Term Debt
Effective interest rate (as a percent)			3.56%		3.56%
Credit Agreement | Revolving credit facility | Initial Commitment expiring May 23, 2017
Long-Term Debt
Maximum borrowing capacity	$ 776,500,000
Credit Agreement | Revolving credit facility | Reduced Commitment as of May 23. 2017
Long-Term Debt
Maximum borrowing capacity	494,750,000					494,750,000
Credit Agreement | Revolving credit facility | Reduced Commitment as of May 23. 2017 | Before amendment
Long-Term Debt
Maximum borrowing capacity	479,750,000
Credit Agreement | Revolving credit facility | Extended Commitment to May 23, 2021
Long-Term Debt
Maximum borrowing capacity						$ 461,250,000
Credit Agreement | Term loan
Long-Term Debt
Principal amount	50,000,000
Payments on term loan		$ 50,000,000
Credit Agreement | Letters of credit subfacility
Long-Term Debt
Maximum borrowing capacity	125,000,000
Credit Agreement | Swingline subfacility
Long-Term Debt
Maximum borrowing capacity	15,000,000
Replaced Credit Agreement | Replaced Revolving Credit Facility
Long-Term Debt
Maximum borrowing capacity	700,000,000
Outstanding							255,000,000
Replaced Credit Agreement | Replaced Term Loan
Long-Term Debt
Principal amount	250,000,000
Outstanding							$ 50,000,000
Senior Notes | Series B Senior Notes
Long-Term Debt
Principal amount	$ 145,000,000
Interest rate (as a percent)	6.72%
Intermediate Partnership | ARLP Debt Arrangements
Long-Term Debt
ARLP debt arrangements requirements, period over which the ratios are required to be maintained	12 months
Intermediate Partnership | ARLP Debt Arrangements | Maximum
Long-Term Debt
ARLP debt arrangements requirements, fixed charge coverage ratio	1.15
ARLP debt arrangements requirements, debt to cash flow ratio	2.5
Intermediate Partnership | ARLP Debt Arrangements | Minimum
Long-Term Debt
ARLP debt arrangements requirements, cash flow to interest expense ratio	3
Intermediate Partnership | ARLP Debt Arrangements | Before amendment | Maximum
Long-Term Debt
ARLP debt arrangements requirements, fixed charge coverage ratio	1.25
ARLP debt arrangements requirements, debt to cash flow ratio	2.25

LONG-TERM DEBT - 2025 Senior No

LONG-TERM DEBT - 2025 Senior Notes (Details) - USD ($)	Apr. 24, 2017	Jun. 30, 2017	Jun. 30, 2017	Jan. 27, 2017
Issuance of Senior Notes
Make-whole payment			$ 8,148,000
Discount and debt issuance costs incurred			$ 15,033,000
Senior notes | Senior Notes
Issuance of Senior Notes
Discount and debt issuance costs incurred		$ 7,300,000
Series B Senior Notes | Senior Notes
Issuance of Senior Notes
Principal amount				$ 145,000,000
Interest rate (as a percent)				6.72%
Make-whole payment	$ 8,100,000
Intermediate Partnership and Alliance Finance | Senior notes | Senior Notes
Issuance of Senior Notes
Principal amount	$ 400,000,000
Term	8 years
Interest rate (as a percent)	7.50%
Percentage of debt that may be redeemed prior to May 1, 2020	35.00%
Redemption price expressed as a percentage of principal	107.50%

LONG-TERM DEBT - Securitization

LONG-TERM DEBT - Securitization Facility (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Dec. 05, 2014
Long-Term Debt
Outstanding	$ 475,700,000	$ 550,000,000
Securitization Facility
Long-Term Debt
Maximum borrowing capacity			$ 100,000,000
Outstanding	$ 75,700,000	$ 100,000,000

LONG-TERM DEBT - Cavalier (Deta

LONG-TERM DEBT - Cavalier (Details) - Cavalier Credit Agreement $ in Millions	Oct. 06, 2015USD ($)
Long-Term Debt
Credit facility amount	$ 100
Annual commitment fee percentage, undrawn portion	0.00%
Threshold aggregate borrowings to trigger principal repayment	$ 90
Period for initial amount of payments	2 years
Minimum
Long-Term Debt
Initial quarterly payments	$ 1.3
Quarterly payments after initial period	$ 2.5
Quarterly payments as a percentage of excess cash flow	50.00%
One-month LIBOR
Long-Term Debt
Basis spread for variable interest rate (as a percent)	6.00%

VARIABLE INTEREST ENTITIES - Ca

VARIABLE INTEREST ENTITIES - Cavalier Minerals (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016	Oct. 06, 2015	Nov. 10, 2014
Cavalier Minerals | All Dale I
Variable Interest Entities
Noncontrolling ownership interest (as a percent)	71.70%
Cavalier Minerals | All Dale II
Variable Interest Entities
Noncontrolling ownership interest (as a percent)	72.80%
Funding Commitments | Alliance Minerals | Cavalier Minerals
Variable Interest Entities
Funding commitment	$ 888	$ 48,403
Funding Commitments | Bluegrass Minerals | Cavalier Minerals
Variable Interest Entities
Funding commitment	$ 37	$ 2,017
Funding Commitments | Cavalier Minerals | All Dale I
Variable Interest Entities
Funding commitment				$ 49,000
Funding Commitments | Cavalier Minerals | All Dale II
Variable Interest Entities
Funding commitment			$ 100,000
Initial Funding Commitment | Bluegrass Minerals | Cavalier Minerals
Variable Interest Entities
Funding commitment				2,000
Additional Funding Commitment | Bluegrass Minerals | Cavalier Minerals
Variable Interest Entities
Funding commitment			4,000
Variable Interest Entity, Primary Beneficiary | Initial Funding Commitment | Alliance Minerals | Cavalier Minerals
Variable Interest Entities
Funding commitment				$ 48,000
Variable Interest Entity, Primary Beneficiary | Additional Funding Commitment | Alliance Minerals | Cavalier Minerals
Variable Interest Entities
Funding commitment			$ 96,000

VARIABLE INTEREST ENTITIES - 42

VARIABLE INTEREST ENTITIES - Cavalier Minerals Commitments (Details) - Cavalier Minerals - Funding Commitments - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Alliance Minerals
Variable Interest Entities
Beginning cumulative commitment fulfilled	$ 143,112	$ 82,977	$ 137,077	$ 63,498
Capital contributions - Cash	0	12,096	6,035	31,176
Capital contributions - AllDale Minerals' distributions received by Cavalier Minerals		524		923
Ending cumulative commitment fulfilled	143,112	95,597	143,112	95,597
Remaining commitment	888	48,403	888	48,403
Total committed	144,000	144,000	144,000	144,000
Bluegrass Minerals
Variable Interest Entities
Beginning cumulative commitment fulfilled	5,963	3,458	5,712	2,646
Capital contributions - Cash	0	504	251	1,299
Capital contributions - AllDale Minerals' distributions received by Cavalier Minerals		21		38
Ending cumulative commitment fulfilled	5,963	3,983	5,963	3,983
Remaining commitment	37	2,017	37	2,017
Total committed	$ 6,000	$ 6,000	$ 6,000	$ 6,000

VARIABLE INTEREST ENTITIES - 43

VARIABLE INTEREST ENTITIES - Cavalier Minerals Distributions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Variable Interest Entities
Distributions paid to Partners			$ 106,440	$ 141,811
Alliance Minerals
Variable Interest Entities
Distributions paid to Partners	$ 3,521	$ 0
Bluegrass Minerals
Variable Interest Entities
Distributions paid to Partners	$ 147	$ 0
Cavalier Minerals | Alliance Minerals
Variable Interest Entities
Distributions paid to Partners			$ 8,084	0
Cavalier Minerals | Bluegrass Minerals
Variable Interest Entities
Incentive distribution for noncontrolling owners (as a percent)			25.00%
Distributions paid to Partners			$ 337	$ 0
Cavalier Minerals | Variable Interest Entity, Primary Beneficiary | Alliance Minerals
Variable Interest Entities
Ownership interest in VIE (as a percent)			96.00%

VARIABLE INTEREST ENTITIES - Ot

VARIABLE INTEREST ENTITIES - Other VIEs (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017USD ($)	Nov. 17, 2014company
Variable Interest Entities
Percentage of available cash distributed	100.00%
Variable Interest Entity, Primary Beneficiary | Alliance Coal | Intermediate Partnership
Variable Interest Entities
Ownership interest in VIE (as a percent)	99.999%
Variable Interest Entity, Primary Beneficiary | Intermediate Partnership | ARLP
Variable Interest Entities
Ownership interest in VIE (as a percent)	98.9899%
WKY CoalPlay | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entities
Number of limited liability companies related to MGP, that formed the related party together with SGP Land | company		2
WKY CoalPlay | Variable Interest Entity, Not Primary Beneficiary | Coal lease
Variable Interest Entities
Payments for earned royalties	$ 10.8
Advance royalties	$ 30
MGP | Intermediate Partnership
Variable Interest Entities
Ownership percentage by general partners	1.0001%
MGP | Alliance Coal
Variable Interest Entities
Ownership percentage by general partners	0.001%
MGP | ARLP
Variable Interest Entities
Ownership percentage by general partners	0.99%
MGP | Alliance Coal
Variable Interest Entities
Ownership percentage by general partners	0.001%
MGP | Intermediate Partnership
Variable Interest Entities
Ownership percentage by general partners	1.0001%

EQUITY INVESTMENTS - AllDale (D

EQUITY INVESTMENTS - AllDale (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Feb. 28, 2017
Changes in equity method investment
Beginning balance			$ 138,817
Equity in income (loss) of affiliates	$ 2,916	$ (37)	6,616	$ (64)
Ending balance	149,592		149,592
AllDale Partnerships
Changes in equity method investment
Beginning balance	147,052	84,234	138,817	64,509
Contributions	3,300	13,017	12,587	33,185
Equity in income (loss) of affiliates	2,916	(37)	6,616	(64)
Distributions received	(3,676)	(544)	(8,428)	(960)
Ending balance	$ 149,592	$ 96,670	$ 149,592	$ 96,670
Funding Commitments | All Dale Minerals III | Alliance Minerals
Equity method investments, additional information
Investment commitment					$ 30,000

NET INCOME OF ARLP PER LIMITE46

NET INCOME OF ARLP PER LIMITED PARTNER UNIT - Exchange Transaction (Details) - shares	Jul. 28, 2017	Jun. 30, 2017	Dec. 31, 2016
Ownership interests
ARLP common units outstanding		74,597,036	74,375,025
Subsequent event
Ownership interests
ARLP common units outstanding	130,704,217
AHGP | Subsequent event
Ownership interests
Units owned by parent	87,188,338
ARLP | SGP
Ownership interests
Ownership percentage by general partners		0.01%
ARLP | MGP
Ownership interests
Ownership percentage by general partners		0.99%
ARLP | AHGP
Ownership interests
Ownership percentage of managing general partner by parent		100.00%
Units owned by parent		31,088,338
Intermediate Partnership | SGP
Ownership interests
Ownership percentage by general partners		0.01%
Intermediate Partnership | MGP
Ownership interests
Ownership percentage by general partners		1.0001%
Alliance Coal | MGP
Ownership interests
Ownership percentage by general partners		0.001%
Intermediate Partnership | AHGP | Subsequent event
Ownership interests
Ownership percentage of managing general partner by parent	1.0001%
Alliance Coal | AHGP | Subsequent event
Ownership interests
Ownership percentage of managing general partner by parent	0.001%
MGP II | AHGP | Subsequent event
Ownership interests
Ownership percentage of managing general partner by parent	100.00%
Units owned by parent	56,100,000
Exchange Transaction | Subsequent event
Ownership interests
Common units issued in exchange	56,107,181
Exchange Transaction | MGP | Subsequent event
Ownership interests
Common units issued in exchange	56,100,000
Exchange Transaction | SGP | Subsequent event
Ownership interests
Common units issued in exchange	7,181
Exchange Transaction | SGP | Intermediate Partnership | Subsequent event
Ownership interests
Ownership percentage by general partners	0.01%

NET INCOME OF ARLP PER LIMITE47

NET INCOME OF ARLP PER LIMITED PARTNER UNIT - Incentive Distributions (Details) - MGP	6 Months Ended
	Jun. 30, 2017$ / shares
Excess Of $0.1375 Per Unit
Incentive distributions
General partner incentive distribution percentage	15.00%
Threshold distribution of net income per unit (in dollars per unit)	$ 0.1375
Excess Of $0.15625 Per Unit
Incentive distributions
General partner incentive distribution percentage	25.00%
Threshold distribution of net income per unit (in dollars per unit)	$ 0.15625
Excess Of $0.1875 Per Unit
Incentive distributions
General partner incentive distribution percentage	50.00%
Threshold distribution of net income per unit (in dollars per unit)	$ 0.1875

NET INCOME OF ARLP PER LIMITE48

NET INCOME OF ARLP PER LIMITED PARTNER UNIT - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 28, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income of ARLP		$ 63,230	$ 82,713	$ 168,132	$ 130,023
Managing general partner priority distributions			(19,159)	(19,216)	(38,318)
General partners' 2% equity ownership		(604)	(1,271)	(2,334)	(1,834)
General partners' special allocation of certain general and administrative expenses				800
LIMITED PARTNERS' INTEREST IN NET INCOME OF ARLP		62,626	62,283	147,382	89,871
Distributions to participating securities		(1,103)	(878)	(2,069)	(1,753)
Undistributed earnings attributable to participating securities			(782)	(1,357)	(582)
Net income of ARLP available to limited partners		$ 61,523	$ 60,623	$ 143,956	$ 87,536
Weighted average limited partner units outstanding - basic (in units)		74,597,036	74,375,025	74,550,426	74,333,070
Weighted average limited partner units outstanding - diluted (in units)		74,597,036	74,375,025	74,550,426	74,333,070
Basic net income of ARLP per limited partner unit (in dollars per unit)		$ 0.82	$ 0.82	$ 1.93	$ 1.18
Diluted net income of ARLP per limited partner unit (in dollars per unit)		0.82	0.82	1.93	1.18
Pro forma basic net income of ARLP per limited partner unit (3) (in dollars per share)		$ 0.47	$ 0.62	$ 1.26	$ 0.97
Anti-dilutive under the treasury stock method (in units)		1,355,000	699,000	1,401,000	488,000
ARLP | MGP
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Ownership percentage by general partners				0.99%
Intermediate Partnership | MGP
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Ownership percentage by general partners				1.0001%
Exchange Transaction
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Pro forma diluted net income of ARLP per limited partner unit (3) (in dollars per share)		$ 0.47	$ 0.62	$ 1.26	$ 0.97
Exchange Transaction | Pro Forma
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income of ARLP available to limited partners		$ 61,500	$ 80,600	$ 164,500	$ 126,800
Subsequent event | Exchange Transaction
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Common units issued in exchange	56,107,181

NET INCOME OF ARLP PER LIMITE49

NET INCOME OF ARLP PER LIMITED PARTNER UNIT - Contribution by Affiliate (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017USD ($)
Affiliated entity controlled by Mr. Craft
Related Party Transaction
Contributions from affiliates for general and administrative expenses	$ 0.8

WORKERS' COMPENSATION AND PNE50

WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Workers' Compensation Liability (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reconciliation of changes in the workers' compensation liability
Beginning balance					$ 47,600	$ 55,564	$ 48,131	$ 54,558
Accruals increase					12,700	2,187	14,674	5,424
Payments					(2,517)	(3,265)	(5,442)	(5,988)
Interest accretion					420	492	840	984
Valuation loss (1)					1,778	1,425	1,778	1,425
Ending balance	$ 59,981	$ 48,131	$ 56,403	$ 54,558	$ 59,981	$ 56,403	$ 59,981	$ 56,403
Workers' compensation discount rate	3.38%	3.52%	2.89%	3.63%

WORKERS' COMPENSATION AND PNE51

WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Periodic Benefit Cost (Details) - Pneumoconiosis benefits - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accrued Workers Compensation And Pneumoconiosis Benefits
Service cost	$ 556	$ 644	$ 1,102	$ 1,292
Interest cost	628	626	1,257	1,253
Amortization of net actuarial gain (1)	(567)	(661)	(1,134)	(1,322)
Net periodic benefit cost	$ 617	$ 609	$ 1,225	$ 1,223

COMPENSATION PLANS - LTIP Grant

COMPENSATION PLANS - LTIP Grants Activity (Details) - ARLP LTIP - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Summary of non-vested grants (in units)
Balance at the beginning of the period (in units)	1,604,748
Granted (in units)	462,890
Vested (in units)	(350,516)
Forfeited (in units)	(29,026)
Balance at the end of the period (in units)	1,688,096
Weighted average grant date fair value per unit
Balance at the beginning of the period (in dollars per unit)	$ 23.19
Granted (in dollars per unit)	23.25
Vested (in dollars per unit)	40.73
Forfeited (in dollars per unit)	20.58
Balance at the end of the period (in dollars per unit)	$ 19.61
Intrinisic value (in dollars)
Intrinsic value of outstanding grants (in dollars)	$ 31,905	$ 36,027
Other information
Common units issued upon vesting	222,011

COMPENSATION PLANS - LTIP Other

COMPENSATION PLANS - LTIP Other Information (Details) - ARLP LTIP - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other information
Unit-based compensation expense	$ 2.8	$ 3	$ 5.4	$ 5.9
Total unit-based obligation recorded	16.1		16.1
Unrecognized compensation expense (in dollars)	$ 17		$ 17
Weighted-average period for recognition of expense			1 year 7 months 6 days
Common units issued upon vesting			222,011
Units available for grant	2,500,000		2,500,000

COMPENSATION PLANS - SERP and D

COMPENSATION PLANS - SERP and Directors Deferred Compensation Plans Activity (Details) - SERP and Deferred Compensation Plans - Phantom Share Units (PSUs) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Summary of non-vested grants (in units)
Balance at the beginning of the period (in units)	494,018
Granted (in units)	24,284
Balance at the end of the period (in units)	518,302
Weighted average grant date fair value per unit
Balance at the beginning of the period (in dollars per unit)	$ 29.77
Granted (in dollars per unit)	22.92
Balance at the end of the period (in dollars per unit)	$ 29.45
Intrinisic value (in dollars)
Intrinsic value of outstanding grants (in dollars)	$ 9,796	$ 11,091

COMPENSATION PLANS - SERP and55

COMPENSATION PLANS - SERP and Directors Deferred Compensation Plans (Details) - SERP and Deferred Compensation Plans - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Compensation Plans
Common unit-based compensation expense	$ 0.4	$ 0.3	$ 0.7	$ 0.6
Total unit-based obligation recorded	$ 15.3		$ 15.3

COMPONENTS OF PENSION PLAN NE56

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Details) - USD ($) $ in Thousands	Jul. 17, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Pension Plan
Components of net periodic benefit cost:
Service cost			$ 598		$ 1,196
Interest cost		$ 1,135	1,131	$ 2,270	2,263
Expected return on plan assets		(1,251)	(1,287)	(2,503)	(2,574)
Amortization of prior service cost (1)		47		94
Amortization of net loss (1)		772	789	1,545	1,578
Net periodic benefit cost		$ 703	$ 1,231	1,406	$ 2,463
2016 plan year
Components of net periodic benefit cost:
Employer contribution payments				700
2017 plan year
Components of net periodic benefit cost:
Employer contribution payments	$ 600			$ 600

SEGMENT INFORMATION - General I

SEGMENT INFORMATION - General Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017segment	Jul. 19, 2017USD ($)
Reportable segment results
Number of reportable segments | segment	2
Alliance Minerals | Kodiak | Subsequent event
Reportable segment results
Investment in affiliate | $		$ 100

SEGMENT INFORMATION - Segment R

SEGMENT INFORMATION - Segment Results (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)segment	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Segment Information
Number of reportable segments | segment			2
Reportable segment results
Total revenues	$ 398,720	$ 439,150	$ 859,800	$ 851,979
Segment Adjusted EBITDA Expense	238,279	251,786	499,773	515,274
Segment Adjusted EBITDA	156,029	181,845	349,719	324,601
Total assets	2,177,418	2,367,856	2,177,418	2,367,856	$ 2,193,042
Capital expenditures	37,171	16,869	67,517	48,602
Additional information
Equity in income (loss) of affiliates	2,916	(37)	6,616	(64)
Investments in affiliate	149,592		149,592		$ 138,817
Illinois Basin
Reportable segment results
Total revenues	232,484	285,557	496,834	561,575
Appalachia
Reportable segment results
Total revenues	135,706	136,409	305,950	252,554
Other and Corporate
Reportable segment results
Total revenues	30,530	17,184	57,016	37,850
Operating segments | Illinois Basin
Reportable segment results
Total revenues	249,573	295,880	525,128	583,756
Segment Adjusted EBITDA Expense	150,299	161,045	311,736	339,688
Segment Adjusted EBITDA	93,288	130,846	199,551	235,618
Total assets	1,445,624	1,658,518	1,445,624	1,658,518
Capital expenditures	22,927	12,357	40,116	30,371
Additional information
Equity in income (loss) of affiliates	2,900		6,600
Operating segments | Appalachia
Reportable segment results
Total revenues	135,706	138,034	305,950	256,360
Segment Adjusted EBITDA Expense	83,619	88,003	178,936	167,732
Segment Adjusted EBITDA	50,744	48,532	123,931	85,202
Total assets	473,699	516,584	473,699	516,584
Capital expenditures	13,261	4,348	26,041	17,011
Operating segments | Other and Corporate
Reportable segment results
Total revenues	34,425	21,577	65,024	46,747
Segment Adjusted EBITDA Expense	23,123	16,165	40,961	36,911
Segment Adjusted EBITDA	14,218	5,380	30,679	9,608
Total assets	369,185	358,569	369,185	358,569
Capital expenditures	983	164	1,360	1,220
Additional information
Investments in affiliate	149,600	96,700	149,600	96,700
Elimination
Reportable segment results
Total revenues	(20,984)	(16,341)	(36,302)	(34,884)
Segment Adjusted EBITDA Expense	(18,762)	(13,427)	(31,860)	(29,057)
Segment Adjusted EBITDA	(2,221)	(2,913)	(4,442)	(5,827)
Total assets	(111,090)	(165,815)	(111,090)	(165,815)
Elimination | Illinois Basin
Reportable segment results
Total revenues	17,089	10,323	28,294	22,181
Elimination | Appalachia
Reportable segment results
Total revenues		1,625		3,806
Elimination | Other and Corporate
Reportable segment results
Total revenues	$ 3,895	$ 4,393	$ 8,008	$ 8,897

SEGMENT INFORMATION - EBITDA Ex

SEGMENT INFORMATION - EBITDA Expense Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)
Segment Adjusted EBITDA Expense	$ 238,279	$ 251,786	$ 499,773	$ 515,274
Other income	389	161	1,687	252
Operating expenses (excluding depreciation, depletion and amortization)	$ 238,668	$ 251,947	$ 501,460	$ 515,526

SEGMENT INFORMATION - EBITDA Re

SEGMENT INFORMATION - EBITDA Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reconciliation of consolidated Segment Adjusted EBITDA to net income
Consolidated Segment Adjusted EBITDA	$ 156,029	$ 181,845	$ 349,719	$ 324,601
General and administrative	(14,944)	(17,663)	(30,977)	(34,901)
Depreciation, depletion and amortization	(59,020)	(73,697)	(124,147)	(144,304)
Interest expense, net	(10,561)	(7,768)	(18,053)	(15,380)
Debt extinguishment loss	(8,148)		(8,148)
Income tax (expense) benefit	(4)	(6)	8	3
NET INCOME	$ 63,352	$ 82,711	$ 168,402	$ 130,019

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent event $ / shares in Units, $ in Millions	Jul. 28, 2017USD ($)$ / shares
Subsequent Event
Distribution declared (in dollars per unit) | $ / shares	$ 0.50
Approximate distribution to be paid	$ 66
General Partners
Subsequent Event
Approximate distribution to be paid	$ 0.7

SUBSEQUENT EVENTS - Investment

SUBSEQUENT EVENTS - Investment (Details) $ in Millions	Jul. 19, 2017USD ($)
Alliance Minerals | Kodiak | Subsequent event
Subsequent Event
Investment in affiliate	$ 100