Alliance Resource Partners (ARLP) 10-Q 6 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 06, 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	Sep. 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	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 18,393	$ 39,782
Trade receivables	129,031	152,032
Other receivables	709	279
Due from affiliates	288	271
Inventories, net	87,667	61,051
Advance royalties, net	1,207	1,207
Prepaid expenses and other assets	10,356	22,050
Total current assets	247,651	276,672
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost	2,938,362	2,920,988
Less accumulated depreciation, depletion and amortization	(1,436,470)	(1,335,145)
Total property, plant and equipment, net	1,501,892	1,585,843
OTHER ASSETS:
Advance royalties, net	40,578	29,372
Equity investments in affiliates	144,349	138,817
Cost investments	102,800
Goodwill	136,399	136,399
Other long-term assets	32,983	25,939
Total other assets	457,109	330,527
TOTAL ASSETS	2,206,652	2,193,042
CURRENT LIABILITIES:
Accounts payable	73,597	64,055
Due to affiliates	759	906
Accrued taxes other than income taxes	20,544	18,273
Accrued payroll and related expenses	41,124	41,576
Accrued interest	13,083	316
Workers' compensation and pneumoconiosis benefits	9,732	9,897
Current capital lease obligations	28,220	27,196
Other current liabilities	16,697	14,778
Current maturities, long-term debt, net	100,000	149,874
Total current liabilities	303,756	326,871
LONG-TERM LIABILITIES:
Long-term debt, excluding current maturities, net	385,449	399,446
Pneumoconiosis benefits	64,197	62,822
Accrued pension benefit	39,497	42,070
Workers' compensation	52,477	40,400
Asset retirement obligations	125,146	125,266
Long-term capital lease obligations	64,358	85,540
Other liabilities	16,248	17,203
Total long-term liabilities	747,372	772,747
Total liabilities	1,051,128	1,099,618
Alliance Resource Partners, L.P. ("ARLP") Partners' Capital:
Limited Partners - Common Unitholders 130,704,217 and 74,375,025 units outstanding, respectively	1,173,066	1,400,202
General Partners' interest	14,781	(273,788)
Accumulated other comprehensive loss	(37,694)	(38,540)
Total ARLP Partners' Capital	1,150,153	1,087,874
Noncontrolling interest	5,371	5,550
Total Partners' Capital	1,155,524	1,093,424
TOTAL LIABILITIES AND PARTNERS' CAPITAL	$ 2,206,652	$ 2,193,042

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Sep. 30, 2017	Jul. 28, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Common units outstanding	130,704,217	130,704,217	74,375,025

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
SALES AND OPERATING REVENUES:
Coal sales	$ 435,162	$ 533,817	$ 1,256,168	$ 1,357,578
Transportation revenues	8,009	7,692	24,933	19,732
Other sales and operating revenues	10,018	10,565	31,888	26,743
Total revenues	453,189	552,074	1,312,989	1,404,053
EXPENSES:
Operating expenses (excluding depreciation, depletion and amortization)	295,385	326,891	796,845	842,417
Transportation expenses	8,009	7,692	24,933	19,732
Outside coal purchases		1,514		1,514
General and administrative	15,005	18,114	45,982	53,015
Depreciation, depletion and amortization	69,962	101,432	194,109	245,736
Total operating expenses	388,361	455,643	1,061,869	1,162,414
INCOME FROM OPERATIONS	64,828	96,431	251,120	241,639
Interest expense (net of interest capitalized for the three and nine months ended September 30, 2017 and 2016 of $107, $47, $354 and $320, respectively)	(10,773)	(8,001)	(28,904)	(23,386)
Interest income	4	3	82	8
Equity in income of affiliates	3,798	1,105	10,414	1,041
Cost investment income	2,800		2,800
Debt extinguishment loss			(8,148)
Other income	774	293	2,461	545
INCOME BEFORE INCOME TAXES	61,431	89,831	229,825	219,847
INCOME TAX EXPENSE (BENEFIT)	5	7	(3)	4
NET INCOME	61,426	89,824	229,828	219,843
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	(155)	(44)	(425)	(40)
NET INCOME ATTRIBUTABLE TO ALLIANCE RESOURCE PARTNERS, L.P. ("NET INCOME OF ARLP")	61,271	89,780	229,403	219,803
GENERAL PARTNERS' INTEREST IN NET INCOME OF ARLP	612	20,571	21,362	60,723
LIMITED PARTNERS' INTEREST IN NET INCOME OF ARLP	$ 60,659	$ 69,209	$ 208,041	$ 159,080
BASIC NET INCOME OF ARLP PER LIMITED PARTNER UNIT (Note 9) (in dollars per unit)	$ 0.52	$ 0.91	$ 2.32	$ 2.08
DILUTED NET INCOME OF ARLP PER LIMITED PARTNER UNIT (Note 9) (in dollars per unit)	0.52	0.91	2.32	2.08
DISTRIBUTIONS PAID PER LIMITED PARTNER UNIT (in dollars per unit)	$ 0.5000	$ 0.4375	$ 1.3750	$ 1.5500
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING - BASIC (in units)	114,237,979	74,375,025	87,924,986	74,347,157
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING - DILUTED (in units)	114,237,979	74,375,025	87,924,986	74,347,157

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Interest expense, interest capitalized	$ 107	$ 47	$ 354	$ 320

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
NET INCOME		$ 61,426	$ 89,824	$ 229,828	$ 219,843
OTHER COMPREHENSIVE INCOME/(LOSS):
Total adjustments recognized				846
OTHER COMPREHENSIVE INCOME		341	127	846	383
COMPREHENSIVE INCOME		61,767	89,951	230,674	220,226
Less: Comprehensive income attributable to noncontrolling interest		(155)	(44)	(425)	(40)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ARLP		61,612	89,907	230,249	220,186
Defined benefit pension plan
OTHER COMPREHENSIVE INCOME/(LOSS):
Amortization of prior service cost (1)	[1]	46		140
Amortization of net actuarial (gain) loss (1)	[1]	774	787	2,319	2,365
Total adjustments recognized		820	787	2,459	2,365
Pneumoconiosis benefits
OTHER COMPREHENSIVE INCOME/(LOSS):
Amortization of net actuarial (gain) loss (1)	[1]	(479)	(660)	(1,613)	(1,982)
Total adjustments recognized		$ (479)	$ (660)	$ (1,613)	$ (1,982)
[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	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
CASH FLOWS FROM OPERATING ACTIVITIES	$ 456,079	$ 494,528
Property, plant and equipment:
Capital expenditures	(105,455)	(70,267)
Increase (decrease) in accounts payable and accrued liabilities	4,182	(7,965)
Proceeds from sale of property, plant and equipment	1,488	756
Contributions to equity investments in affiliates	(16,487)	(65,367)
Purchase of cost investment	(100,000)
Distributions received from investments in excess of cumulative earnings	10,880	2,167
Payments for acquisitions of business		(1,011)
Payment for acquisition of customer contracts		(23,000)
Net cash used in investing activities	(205,392)	(164,687)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under securitization facility	100,000	44,600
Payments under securitization facility	(100,000)	(27,700)
Payments on term loan	(50,000)	(106,250)
Borrowings under revolving credit facilities	165,000	140,000
Payments under revolving credit facilities	(420,000)	(215,000)
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	(20,186)	(17,769)
Payment of debt issuance costs	(16,221)
Payment for debt extinguishment	(8,148)
Contributions to consolidated company from affiliate noncontrolling interest	251	2,557
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	(173,284)	(194,870)
Other	(2,405)	(60)
Net cash used in financing activities	(272,076)	(341,900)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(21,389)	(12,059)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	39,782	33,431
CASH AND CASH EQUIVALENTS AT END OF PERIOD	18,393	21,372
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	13,679	20,194
Cash paid for income taxes	10	7
NON-CASH INVESTING AND FINANCING ACTIVITY:
Accounts payable for purchase of property, plant and equipment	12,414	4,669
Assets acquired by capital lease		37,089
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
Acquisition of assets and businesses
Cash paid, net of cash acquired		$ (1,011)

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands	Limited Partners' Capital	General Partners' Capital (Deficit)	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest	Total
Balance at Dec. 31, 2016	$ 1,400,202	$ (273,788)	$ (38,540)	$ 5,550	$ 1,093,424
Balance (in units) at Dec. 31, 2016	74,375,025				74,375,025
Comprehensive income:
Net income (loss)	$ 208,041	21,362		425	$ 229,828
Actuarially determined long-term liability adjustments			846		846
COMPREHENSIVE INCOME					230,674
Issuance of units to Long-Term Incentive Plan participants upon vesting	$ (2,988)				(2,988)
Issuance of units to Long-Term Incentive Plan participants upon vesting (in units)	222,011
Issuance of units to MGP in Exchange Transaction	$ 14,171	(14,171)
Issuance of units to MGP in Exchange Transaction (in units)	56,100,000
Issuance of units to SGP in Exchange Transaction	$ (320,838)	320,838
Issuance of units to SGP in Exchange Transaction (in units)	7,181
Exchange Transaction fees	$ (1,550)				(1,550)
Common unit-based compensation	8,947				8,947
Distributions on common unit-based compensation	(2,392)				(2,392)
General Partners contributions		905			905
Contributions to consolidated company from affiliate noncontrolling interest				251	251
Distributions from consolidated company to affiliate noncontrolling interest				(855)	(855)
Distributions to Partners	(130,527)	(40,365)			(170,892)
Balance at Sep. 30, 2017	$ 1,173,066	$ 14,781	$ (37,694)	$ 5,371	$ 1,155,524
Balance (in units) at Sep. 30, 2017	130,704,217				130,704,217

ORGANIZATION AND PRESENTATION

ORGANIZATION AND PRESENTATION	9 Months Ended
	Sep. 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 sole general partner and, prior to the Exchange Transaction discussed below, its managing general partner. · References to "SGP" mean Alliance Resource GP, LLC, ARLP's special general partner prior to 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 MGP, and Kathleen S. Craft. SGP, a Delaware limited liability company, is owned by ARH. SGP owns 20,641,168 common units of AHGP’s 59,863,000 outstanding common units, 7,181 common units of ARLP and, prior to the Exchange Transaction discussed below, owned a 0.01% special general partner interest in both ARLP and the Intermediate Partnership. We are managed by MGP, a Delaware limited liability company and the sole general partner of ARLP. MGP holds a non-economic general partner interest in ARLP, a 1.0001% managing general partner interest in the Intermediate Partnership 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 87,188,338 common units of ARLP’s 130,704,217 outstanding common units. AHGP indirectly owns 100% of the members' interest of MGP. ARLP and its consolidated subsidiaries represent virtually all the net assets and operations of AHGP. See discussions below regarding MGP’s and AHGP’s change of ownership in ARLP effective with the Exchange Transaction on July 28, 2017. Exchange Transaction On July 28, 2017, MGP contributed to ARLP all of its incentive distribution rights ("IDRs") and its managing 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. The Exchange Transaction constituted an exchange of equity interests between entities under common control and not a transfer of a business. Therefore, the exchange resulted in a reclassification, as of the date of the Exchange Transaction, of a $306.7 million deficit capital balance from the General Partners' interest line item to the Limited Partners - Common Unitholders line item in our condensed consolidated balance sheets. The reclassification amounts represented the carrying value of the exchanged interests, which included the SGP’s deficit balance associated with its prior special general partner interests in ARLP and the Intermediate Partnership, partially offset, by MGP’s capital balance associated with its prior managing general partner interest in ARLP. The SGP deficit balance primarily resulted from contribution and assumption agreements associated with the formation of the ARLP Partnership in 1999. 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 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 September 30, 2017 and December 31, 2016, the results of operations and comprehensive income for the three and nine months ended September 30, 2017 and 2016, cash flows for the nine months ended September 30, 2017 and 2016, and changes in partners' capital for the nine months ended September 30, 2017 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. MGP's interests in both Alliance Coal and the Intermediate Partnership are reported as part of the general partner interest in the ARLP Partnership. For the periods presented prior to the Exchange Transaction, MGP's managing general partner interest and IDRs in ARLP and the SGP's special general partner interests in ARLP and the Intermediate Partnership are also 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. Investments Our investments and ownership interests in which we do not have a controlling financial interest are accounted for either under the cost method of accounting if we do not have the ability to exercise significant influence over the entity, or under the equity method of accounting if we have the ability to exercise significant influence over the entity. Historical cost is used to account for investments accounted for under the cost method and distributions received on those investments are recorded as income unless those distributions are considered a return on investment in which case the historical cost is reduced. Our cost method investment includes Kodiak Gas Services, LLC ("Kodiak"). See Note 8 – Investments for further discussion of this cost method investment. Investments accounted for under the equity method are initially recorded at cost, and the difference between the basis of our investment and the underlying equity in the net assets of the joint venture at the investment date, if any, is amortized over the lives of the related assets that gave rise to the difference. In the event our ownership entitles us to a disproportionate sharing of income or loss, our equity in income or losses of affiliates is allocated based on the hypothetical liquidation at book value ("HLBV") method of accounting. Under the HLBV method, equity in income or losses of affiliates is allocated based on the difference between our claim on the net assets of the equity method investee at the end and beginning of the period, with consideration of certain eliminating entries regarding differences of accounting for various related-party transactions, after taking into account contributions and distributions, if any. Our share of the net assets of the equity method investee is calculated as the amount we would receive if the equity method investee were to liquidate all of its assets at net book value and distribute the resulting cash to creditors, other investors and us according to the respective priorities. None of our current equity investments use the HLBV method. Our last use of this method was in 2015 which will be discussed in our upcoming Form 10-K. Our equity method investments include AllDale Minerals, LP ("AllDale I"), and AllDale Minerals II, LP ("AllDale II") (collectively "AllDale Minerals"), both held by our subsidiary Cavalier Minerals JV, LLC ("Cavalier Minerals"). We also have an equity method investment in AllDale Minerals III, LP ("AllDale III") which is not held through Cavalier Minerals but rather held directly by us. See Note 8 – Investments for further discussion of these equity method investments. We review our investments and ownership interests accounted for under both the equity method of accounting and the cost method of accounting for impairment whenever events or changes in circumstances indicate a loss in the value of the investment may be other-than-temporary.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	9 Months Ended
	Sep. 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 do not anticipate ASU 2017-07 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 have developed an assessment team and 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 general partner. We continue to monitor closely, (a) activities of the FASB and various non-authoritative groups with respect to implementation issues that may 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. As we do not anticipate a change in the recognition pattern of our revenues, we do not expect to have a cumulative effect adjustment when we adopt the new standard.

CONTINGENCIES

CONTINGENCIES	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 30, 2017
INVENTORIES
INVENTORIES	4. Inventories consist of the following: September 30, December 31, 2017 2016 (in thousands) Coal $ 51,657 $ 29,242 Supplies (net of reserve for obsolescence of $5,015 and $4,940, respectively) 36,010 31,809 Total inventories, net $ 87,667 $ 61,051

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2017
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	5. The following table summarizes our fair value measurements within the hierarchy: September 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 — 536,296 — — 559,509 — Total $ — $ 536,296 $ 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	9 Months Ended
	Sep. 30, 2017
LONG-TERM DEBT
LONG-TERM DEBT	6. Long-term debt consists of the following: Unamortized Discount and Principal Debt Issuance Costs September 30, December 31, September 30, December 31, 2017 2016 2017 2016 (in thousands) Revolving Credit facility $ — $ 255,000 $ (7,615) $ (453) Senior notes 400,000 — (6,936) — Series B senior notes — 145,000 — (101) Term loan — 50,000 — (126) Securitization facility 100,000 100,000 — — 500,000 550,000 (14,551) (680) Less current maturities (100,000) (150,000) — 126 Total long-term debt $ 400,000 $ 400,000 $ (14,551) $ (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 considered 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 (a) extend the termination date of the Revolving Credit Facility as to $461.25 million of commitments to May 23, 2021, (b) eliminate the Cavalier Condition and the Senior Notes Condition (both as defined in the Credit Agreement) and (c) 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 $8.9 million in connection with the Credit Agreement. These debt issuance costs are deferred and are being amortized as a component of interest expense over the term of the Credit Facility. 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 3.59% as of September 30, 2017. At September 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 0.84 to 1.0 and 19.2 to 1.0, respectively, for the trailing twelve months ended September 30, 2017. We were compliant with the covenants of the Credit Agreement as of September 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. These costs are deferred and are currently being 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 September 30, 2017, we had $100.0 million outstanding under the Securitization Facility. On October 6, 2015, 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. 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 September 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	9 Months Ended
	Sep. 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Alliance Minerals Beginning cumulative commitment fulfilled $ 143,112 $ 95,597 $ 137,077 $ 63,498 Capital contributions - Cash — 30,184 6,035 61,360 Capital contributions - Net AllDale Minerals' distributions received by Cavalier Minerals (1) — 385 — 1,308 Ending cumulative commitment fulfilled 143,112 126,166 143,112 126,166 Remaining commitment 888 17,834 888 17,834 Total committed $ 144,000 $ 144,000 $ 144,000 $ 144,000 Bluegrass Minerals Beginning cumulative commitment fulfilled $ 5,963 $ 3,983 $ 5,712 $ 2,646 Capital contributions - Cash — 1,258 251 2,557 Capital contributions - Net AllDale Minerals' distributions received by Cavalier Minerals (1) — 16 — 54 Ending cumulative commitment fulfilled 5,963 5,257 5,963 5,257 Remaining commitment 37 743 37 743 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Alliance Minerals $ 12,430 $ 1,444 $ 20,514 $ 1,444 Bluegrass Minerals 518 60 855 60 Alliance Minerals' ownership interest in Cavalier Minerals at September 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 nine months ended September 30, 2017, we paid $10.8 million of advanced royalties to WKY CoalPlay. As of September 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 and a 0.01% general partner 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 managing 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.

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 2017
INVESTMENTS
INVESTMENTS	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, which is included in our Other and Corporate category (see Note 13 – Segment Information), committed to directly (rather than through Cavalier Minerals) invest $30.0 million in AllDale III which was created for similar investment purposes. We account for our ownership interest in the income or loss of AllDale Minerals and AllDale III (collectively, the "AllDale Partnerships") as equity method investments. We record equity income or loss based on the AllDale Partnerships' individual distribution structures. The changes in our aggregate equity method investment in the AllDale Partnerships for each of the periods presented were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Beginning balance $ 149,592 $ 96,670 $ 138,817 $ 64,509 Contributions 3,900 32,181 16,487 65,367 Equity in income of affiliates 3,798 1,105 10,414 1,041 Distributions received (12,941) (1,905) (21,369) (2,866) Ending balance $ 144,349 $ 128,051 $ 144,349 $ 128,051 Kodiak 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. Our ownership interests in Kodiak are senior to all other Kodiak equity interests and subordinate only to Kodiak's senior secured debt facility. We account for our ownership interests in Kodiak as a cost method investment. It is not practicable to estimate the fair value of our investment in Kodiak because of the lack of a quoted market price for our ownership interests. The changes in our investment in Kodiak for the three months ended September 30, 2017 were as follows: Three Months Ended September 30, 2017 (in thousands) Beginning balance $ — Contributions 100,000 Payment‑in‑kind distributions received 2,800 Ending balance $ 102,800

NET INCOME OF ARLP PER LIMITED

NET INCOME OF ARLP PER LIMITED PARTNER UNIT	9 Months Ended
	Sep. 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 general partner, MGP. 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. Following the transactions, ARLP has 130,704,217 common units outstanding. Under the IDR provisions of our partnership agreement prior to the Exchange Transaction, MGP 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, we no longer make distributions with respect to the IDRs. 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 and diluted earnings per unit and the weighted-average units used in computing EPU for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands, except per unit data) Net income of ARLP $ 61,271 $ 89,780 $ 229,403 $ 219,803 Adjustments: MGP's priority distributions (1) — (19,159) (19,216) (57,477) General partners' equity ownership (1) (612) (1,412) (2,946) (3,246) General partners' special allocation of certain general and administrative expenses (2) — — 800 — Limited partners' interest in net income of ARLP 60,659 69,209 208,041 159,080 Less: Distributions to participating securities (1,125) (887) (3,194) (2,640) Undistributed earnings attributable to participating securities — (974) (1,001) (1,524) Net income of ARLP available to limited partners $ 59,534 $ 67,348 $ 203,846 $ 154,916 Weighted-average limited partner units outstanding – basic and diluted 114,238 74,375 87,925 74,347 Basic and diluted net income of ARLP per limited partner unit (3) $ 0.52 $ 0.91 $ 2.32 $ 2.08 (1) Amounts for the three and nine months ended September 30, 2017 reflect the impact of the Exchange Transaction eliminating second and third quarter distributions that would have been paid 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 notwithstanding the Exchange Transaction. Because the Exchange Transaction occurred prior to the record date for ARLP’s second and third quarter distributions, all of the second and third 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 and third quarter earnings and subsequent distributions to the limited partner interest. (2) During the nine months ended September 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 general partner, which in turn contributed the same amount to our subsidiary, Alliance Coal. As provided under our partnership agreement, we made a special allocation to MGP 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. (3) Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive. The combined total of LTIP, SERP and Deferred Compensation Plan units of 1,401 and 1,417 for the three and nine months ended September 30, 2017, respectively, and 1,227 and 735 for the three and nine months ended September 30, 2016, respectively, were considered anti-dilutive under the treasury stock method. On a pro forma basis, as if the Exchange Transaction had taken place on January 1, 2016, the reconciliation of net income of ARLP to basic and diluted earnings per unit and the weighted-average units used in computing EPU for the three and nine months ended September 30, 2017 and 2016 are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands, except per unit data) Net income of ARLP $ 61,271 $ 89,780 $ 229,403 $ 219,803 Adjustments: General partners' equity ownership (612) (899) (2,294) (2,200) General partners' special allocation of certain general and administrative expenses (1) — — 800 — Limited partners' interest in net income of ARLP 60,659 88,881 227,909 217,603 Less: Distributions to participating securities (1,125) (887) (3,194) (2,640) Undistributed earnings attributable to participating securities — (485) (601) (653) Net income of ARLP available to limited partners (2) $ 59,534 $ 87,509 $ 224,114 $ 214,310 Weighted-average limited partner units outstanding – basic and diluted (2) 130,704 130,482 130,673 130,454 Pro forma basic and diluted net income of ARLP per limited partner unit (3) $ 0.46 $ 0.67 $ 1.72 $ 1.64 (1) During the nine months ended September 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 general partner, which in turn contributed the same amount to our subsidiary, Alliance Coal. As provided under our partnership agreement, we made a special allocation to MGP 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. (2) The pro forma amounts presented above reflect net income allocations as if distributions had been made for all periods presented based on the limited and general partner interests outstanding as a result of the Exchange Transaction. Accordingly, the Adjustment - General partners’ equity ownership line item above no longer includes the (a) IDR distributions to MGP, (b) general partner interest distributions from ARLP to MGP and SGP and (c) general partner distributions from the Intermediate Partnership to SGP. Pro forma amounts above also reflect weighted average units outstanding as if the issuance of 56,107,181 ARLP common units in the Exchange Transaction applied to all periods presented. (3) Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive. The combined total of LTIP, SERP and Deferred Compensation Plan units of 1,401 and 1,417 for the three and nine months ended September 30, 2017, respectively, and 1,227 and 735 for the three and nine months ended September 30, 2016, respectively, were considered anti-dilutive under the treasury stock method.

WORKERS' COMPENSATION AND PNEUM

WORKERS' COMPENSATION AND PNEUMOCONIOSIS	9 Months Ended
	Sep. 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Beginning balance $ 59,981 $ 56,403 $ 48,131 $ 54,558 Accruals increase 1,999 2,480 16,673 7,904 Payments (2,357) (2,238) (7,799) (8,226) Interest accretion 421 492 1,261 1,476 Valuation loss (1) — — 1,778 1,425 Ending balance $ 60,044 $ 57,137 $ 60,044 $ 57,137 (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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Service cost $ 580 $ 644 $ 1,682 $ 1,936 Interest cost 649 627 1,906 1,880 Amortization of net actuarial gain (1) (479) (660) (1,613) (1,982) Net periodic benefit cost $ 750 $ 611 $ 1,975 $ 1,834 (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	9 Months Ended
	Sep. 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 nine months ended September 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 September 30, 2017 32,779 (1) During the nine months ended September 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 $3.1 million for the three months ended September 30, 2017 and 2016, respectively, and $8.2 million and $9.0 million for the nine months ended September 30, 2017 and 2016, respectively. The total obligation associated with the LTIP as of September 30, 2017 was $18.9 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets. As of September 30, 2017, there was $14.3 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 1.4 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 nine months ended September 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 40,359 Phantom units outstanding as of September 30, 2017 534,377 10,340 Total SERP and Deferred Compensation Plan expense was $0.3 million for each of the three months ended September 30, 2017 and 2016, and $1.0 million and $0.9 million for the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, the total obligation associated with the SERP and Deferred Compensation Plan was $15.6 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	9 Months Ended
	Sep. 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 in the Pension Plan 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Service cost $ — $ 524 $ — $ 1,720 Interest cost 1,138 1,118 3,408 3,381 Expected return on plan assets (1,240) (1,363) (3,743) (3,937) Amortization of prior service cost (1) 46 — 140 — Amortization of net loss (1) 774 787 2,319 2,365 Net periodic benefit cost $ 718 $ 1,066 $ 2,124 $ 3,529 (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 nine months ended September 30, 2017, we made contribution payments of $1.1 million to the Pension Plan for the 2016 plan year and $1.2 million for the 2017 plan year. On October 16, 2017, we made a contribution payment of $0.6 million for the 2017 plan year.

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 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 currently 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, which includes the Onton mine, Steamport, LLC and certain 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 –Investments), 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 (Note 8 – Investments). Reportable segment results as of and for the three and nine months ended September 30, 2017 and 2016 are presented below. Illinois Other and Elimination Basin Appalachia Corporate (1) Consolidated (in thousands) Three Months Ended September 30, 2017 Revenues - Outside $ 266,931 $ 152,865 $ 33,393 $ — $ 453,189 Revenues - Intercompany 18,446 1,390 3,977 (23,813) — Total revenues (2) 285,377 154,255 37,370 (23,813) 453,189 Segment Adjusted EBITDA Expense (3) 192,465 97,316 26,421 (21,591) 294,611 Segment Adjusted EBITDA (4) 86,377 55,465 17,547 (2,222) 157,167 Capital expenditures 26,328 11,126 484 — 37,938 Three Months Ended September 30, 2016 Revenues - Outside $ 360,221 $ 154,852 $ 37,001 $ — $ 552,074 Revenues - Intercompany 18,267 — 4,826 (23,093) — Total revenues (2) 378,488 154,852 41,827 (23,093) 552,074 Segment Adjusted EBITDA Expense (3) 227,526 94,201 26,664 (20,279) 328,112 Segment Adjusted EBITDA (4) 145,424 58,497 16,268 (2,814) 217,375 Capital expenditures 10,893 10,306 466 — 21,665 Nine Months Ended September 30, 2017 Revenues - Outside $ 763,765 $ 458,815 $ 90,409 $ — $ Revenues - Intercompany 46,740 1,390 11,985 — Total revenues (2) 810,505 460,205 102,394 (60,115) 1,312,989 Segment Adjusted EBITDA Expense (3) 504,201 276,252 67,382 Segment Adjusted EBITDA (4) 285,928 179,396 48,226 Total assets 1,406,831 468,580 454,314 Capital expenditures 66,444 37,167 1,844 — Nine Months Ended September 30, 2016 Revenues - Outside $ 921,796 $ 407,406 $ 74,851 $ — $ Revenues - Intercompany 40,448 3,806 13,723 — Total revenues (2) 962,244 411,212 88,574 (57,977) 1,404,053 Segment Adjusted EBITDA Expense (3) 567,214 261,933 63,575 Segment Adjusted EBITDA (4) 381,042 143,699 25,876 Total assets 1,541,513 480,920 370,280 Capital expenditures 41,264 27,317 1,686 — (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 nine months ended September 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Segment Adjusted EBITDA Expense $ 294,611 $ 328,112 $ 794,384 $ 843,386 Outside coal purchases — (1,514) — (1,514) Other income 774 293 2,461 545 Operating expenses (excluding depreciation, depletion and amortization) $ 295,385 $ 326,891 $ 796,845 $ 842,417 (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 nine months ended September 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Consolidated Segment Adjusted EBITDA $ 157,167 $ 217,375 $ 506,886 $ 541,976 General and administrative (15,005) (18,114) (45,982) (53,015) Depreciation, depletion and amortization (69,962) (101,432) (194,109) (245,736) Interest expense, net (10,769) (7,998) (28,822) (23,378) Debt extinguishment loss — — (8,148) — Income tax (expense) benefit (5) (7) 3 (4) Net income $ 61,426 $ 89,824 $ 229,828 $ 219,843 .

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	14. On October 27, 2017, we declared a quarterly distribution for the quarter ended September 30, 2017, of $0.505 per unit, on all common units outstanding, totaling approximately $66.7 million, including distributions of $0.7 million to MGP with respect to its general partner interest in the Intermediate Partnership, payable on November 14, 2017 to all unitholders of record as of November 7, 2017.

ORGANIZATION AND PRESENTATION (

ORGANIZATION AND PRESENTATION (Policies)	9 Months Ended
	Sep. 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 September 30, 2017 and December 31, 2016, the results of operations and comprehensive income for the three and nine months ended September 30, 2017 and 2016, cash flows for the nine months ended September 30, 2017 and 2016, and changes in partners' capital for the nine months ended September 30, 2017 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. MGP's interests in both Alliance Coal and the Intermediate Partnership are reported as part of the general partner interest in the ARLP Partnership. For the periods presented prior to the Exchange Transaction, MGP's managing general partner interest and IDRs in ARLP and the SGP's special general partner interests in ARLP and the Intermediate Partnership are also 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.
Investments	Investments Our investments and ownership interests in which we do not have a controlling financial interest are accounted for either under the cost method of accounting if we do not have the ability to exercise significant influence over the entity, or under the equity method of accounting if we have the ability to exercise significant influence over the entity. Historical cost is used to account for investments accounted for under the cost method and distributions received on those investments are recorded as income unless those distributions are considered a return on investment in which case the historical cost is reduced. Our cost method investment includes Kodiak Gas Services, LLC ("Kodiak"). See Note 8 – Investments for further discussion of this cost method investment. Investments accounted for under the equity method are initially recorded at cost, and the difference between the basis of our investment and the underlying equity in the net assets of the joint venture at the investment date, if any, is amortized over the lives of the related assets that gave rise to the difference. In the event our ownership entitles us to a disproportionate sharing of income or loss, our equity in income or losses of affiliates is allocated based on the hypothetical liquidation at book value ("HLBV") method of accounting. Under the HLBV method, equity in income or losses of affiliates is allocated based on the difference between our claim on the net assets of the equity method investee at the end and beginning of the period, with consideration of certain eliminating entries regarding differences of accounting for various related-party transactions, after taking into account contributions and distributions, if any. Our share of the net assets of the equity method investee is calculated as the amount we would receive if the equity method investee were to liquidate all of its assets at net book value and distribute the resulting cash to creditors, other investors and us according to the respective priorities. None of our current equity investments use the HLBV method. Our last use of this method was in 2015 which will be discussed in our upcoming Form 10-K. Our equity method investments include AllDale Minerals, LP ("AllDale I"), and AllDale Minerals II, LP ("AllDale II") (collectively "AllDale Minerals"), both held by our subsidiary Cavalier Minerals JV, LLC ("Cavalier Minerals"). We also have an equity method investment in AllDale Minerals III, LP ("AllDale III") which is not held through Cavalier Minerals but rather held directly by us. See Note 8 – Investments for further discussion of these equity method investments. We review our investments and ownership interests accounted for under both the equity method of accounting and the cost method of accounting for impairment whenever events or changes in circumstances indicate a loss in the value of the investment may be other-than-temporary.
New Accounting Standards	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 do not anticipate ASU 2017-07 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 have developed an assessment team and 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 general partner. We continue to monitor closely, (a) activities of the FASB and various non-authoritative groups with respect to implementation issues that may 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. As we do not anticipate a change in the recognition pattern of our revenues, we do not expect to have a cumulative effect adjustment when we adopt the new standard.

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2017
INVENTORIES
Schedule of inventories	September 30, December 31, 2017 2016 (in thousands) Coal $ 51,657 $ 29,242 Supplies (net of reserve for obsolescence of $5,015 and $4,940, respectively) 36,010 31,809 Total inventories, net $ 87,667 $ 61,051

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2017
FAIR VALUE MEASUREMENTS
Summary of fair value measurements within the hierarchy	September 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 — 536,296 — — 559,509 — Total $ — $ 536,296 $ 9,700 $ — $ 559,509 $ 9,700

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2017
LONG-TERM DEBT
Schedule of long-term debt	Unamortized Discount and Principal Debt Issuance Costs September 30, December 31, September 30, December 31, 2017 2016 2017 2016 (in thousands) Revolving Credit facility $ — $ 255,000 $ (7,615) $ (453) Senior notes 400,000 — (6,936) — Series B senior notes — 145,000 — (101) Term loan — 50,000 — (126) Securitization facility 100,000 100,000 — — 500,000 550,000 (14,551) (680) Less current maturities (100,000) (150,000) — 126 Total long-term debt $ 400,000 $ 400,000 $ (14,551) $ (554)

VARIABLE INTEREST ENTITIES (Tab

VARIABLE INTEREST ENTITIES (Tables)	9 Months Ended
	Sep. 30, 2017
VARIABLE INTEREST ENTITIES
Schedule of contributions and commitments	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Alliance Minerals Beginning cumulative commitment fulfilled $ 143,112 $ 95,597 $ 137,077 $ 63,498 Capital contributions - Cash — 30,184 6,035 61,360 Capital contributions - Net AllDale Minerals' distributions received by Cavalier Minerals (1) — 385 — 1,308 Ending cumulative commitment fulfilled 143,112 126,166 143,112 126,166 Remaining commitment 888 17,834 888 17,834 Total committed $ 144,000 $ 144,000 $ 144,000 $ 144,000 Bluegrass Minerals Beginning cumulative commitment fulfilled $ 5,963 $ 3,983 $ 5,712 $ 2,646 Capital contributions - Cash — 1,258 251 2,557 Capital contributions - Net AllDale Minerals' distributions received by Cavalier Minerals (1) — 16 — 54 Ending cumulative commitment fulfilled 5,963 5,257 5,963 5,257 Remaining commitment 37 743 37 743 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Alliance Minerals $ 12,430 $ 1,444 $ 20,514 $ 1,444 Bluegrass Minerals 518 60 855 60

INVESTMENTS (Tables)

INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2017
INVESTMENTS
Schedule of changes in equity investment	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Beginning balance $ 149,592 $ 96,670 $ 138,817 $ 64,509 Contributions 3,900 32,181 16,487 65,367 Equity in income of affiliates 3,798 1,105 10,414 1,041 Distributions received (12,941) (1,905) (21,369) (2,866) Ending balance $ 144,349 $ 128,051 $ 144,349 $ 128,051
Schedule of changes in cost method investment	Three Months Ended September 30, 2017 (in thousands) Beginning balance $ — Contributions 100,000 Payment‑in‑kind distributions received 2,800 Ending balance $ 102,800

NET INCOME OF ARLP PER LIMITE29

NET INCOME OF ARLP PER LIMITED PARTNER UNIT (Tables)	9 Months Ended
	Sep. 30, 2017
NET INCOME OF ARLP PER LIMITED PARTNER UNIT
Reconciliation of net income and EPU calculations	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands, except per unit data) Net income of ARLP $ 61,271 $ 89,780 $ 229,403 $ 219,803 Adjustments: MGP's priority distributions (1) — (19,159) (19,216) (57,477) General partners' equity ownership (1) (612) (1,412) (2,946) (3,246) General partners' special allocation of certain general and administrative expenses (2) — — 800 — Limited partners' interest in net income of ARLP 60,659 69,209 208,041 159,080 Less: Distributions to participating securities (1,125) (887) (3,194) (2,640) Undistributed earnings attributable to participating securities — (974) (1,001) (1,524) Net income of ARLP available to limited partners $ 59,534 $ 67,348 $ 203,846 $ 154,916 Weighted-average limited partner units outstanding – basic and diluted 114,238 74,375 87,925 74,347 Basic and diluted net income of ARLP per limited partner unit (3) $ 0.52 $ 0.91 $ 2.32 $ 2.08 (1) Amounts for the three and nine months ended September 30, 2017 reflect the impact of the Exchange Transaction eliminating second and third quarter distributions that would have been paid 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 notwithstanding the Exchange Transaction. Because the Exchange Transaction occurred prior to the record date for ARLP’s second and third quarter distributions, all of the second and third 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 and third quarter earnings and subsequent distributions to the limited partner interest. (2) During the nine months ended September 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 general partner, which in turn contributed the same amount to our subsidiary, Alliance Coal. As provided under our partnership agreement, we made a special allocation to MGP 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. (3) Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive. The combined total of LTIP, SERP and Deferred Compensation Plan units of 1,401 and 1,417 for the three and nine months ended September 30, 2017, respectively, and 1,227 and 735 for the three and nine months ended September 30, 2016, respectively, were considered anti-dilutive under the treasury stock method.
Pro Forma
NET INCOME OF ARLP PER LIMITED PARTNER UNIT
Reconciliation of net income and EPU calculations	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands, except per unit data) Net income of ARLP $ 61,271 $ 89,780 $ 229,403 $ 219,803 Adjustments: General partners' equity ownership (612) (899) (2,294) (2,200) General partners' special allocation of certain general and administrative expenses (1) — — 800 — Limited partners' interest in net income of ARLP 60,659 88,881 227,909 217,603 Less: Distributions to participating securities (1,125) (887) (3,194) (2,640) Undistributed earnings attributable to participating securities — (485) (601) (653) Net income of ARLP available to limited partners (2) $ 59,534 $ 87,509 $ 224,114 $ 214,310 Weighted-average limited partner units outstanding – basic and diluted (2) 130,704 130,482 130,673 130,454 Pro forma basic and diluted net income of ARLP per limited partner unit (3) $ 0.46 $ 0.67 $ 1.72 $ 1.64 (1) During the nine months ended September 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 general partner, which in turn contributed the same amount to our subsidiary, Alliance Coal. As provided under our partnership agreement, we made a special allocation to MGP 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. (2) The pro forma amounts presented above reflect net income allocations as if distributions had been made for all periods presented based on the limited and general partner interests outstanding as a result of the Exchange Transaction. Accordingly, the Adjustment - General partners’ equity ownership line item above no longer includes the (a) IDR distributions to MGP, (b) general partner interest distributions from ARLP to MGP and SGP and (c) general partner distributions from the Intermediate Partnership to SGP. Pro forma amounts above also reflect weighted average units outstanding as if the issuance of 56,107,181 ARLP common units in the Exchange Transaction applied to all periods presented. (3) Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive. The combined total of LTIP, SERP and Deferred Compensation Plan units of 1,401 and 1,417 for the three and nine months ended September 30, 2017, respectively, and 1,227 and 735 for the three and nine months ended September 30, 2016, respectively, were considered anti-dilutive under the treasury stock method.

WORKERS' COMPENSATION AND PNE30

WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables)	9 Months Ended
	Sep. 30, 2017
Accrued Workers Compensation And Pneumoconiosis Benefits
Reconciliation of changes in workers' compensation liability	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Beginning balance $ 59,981 $ 56,403 $ 48,131 $ 54,558 Accruals increase 1,999 2,480 16,673 7,904 Payments (2,357) (2,238) (7,799) (8,226) Interest accretion 421 492 1,261 1,476 Valuation loss (1) — — 1,778 1,425 Ending balance $ 60,044 $ 57,137 $ 60,044 $ 57,137 (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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Service cost $ 580 $ 644 $ 1,682 $ 1,936 Interest cost 649 627 1,906 1,880 Amortization of net actuarial gain (1) (479) (660) (1,613) (1,982) Net periodic benefit cost $ 750 $ 611 $ 1,975 $ 1,834 (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)	9 Months Ended
	Sep. 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 September 30, 2017 32,779 (1) During the nine months ended September 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 40,359 Phantom units outstanding as of September 30, 2017 534,377 10,340

COMPONENTS OF PENSION PLAN NE32

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Tables)	9 Months Ended
	Sep. 30, 2017
Defined benefit pension plan
Employee Benefit Plans
Components of net periodic benefit cost	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Service cost $ — $ 524 $ — $ 1,720 Interest cost 1,138 1,118 3,408 3,381 Expected return on plan assets (1,240) (1,363) (3,743) (3,937) Amortization of prior service cost (1) 46 — 140 — Amortization of net loss (1) 774 787 2,319 2,365 Net periodic benefit cost $ 718 $ 1,066 $ 2,124 $ 3,529 (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)	9 Months Ended
	Sep. 30, 2017
SEGMENT INFORMATION
Schedule of reportable segment results	Illinois Other and Elimination Basin Appalachia Corporate (1) Consolidated (in thousands) Three Months Ended September 30, 2017 Revenues - Outside $ 266,931 $ 152,865 $ 33,393 $ — $ 453,189 Revenues - Intercompany 18,446 1,390 3,977 (23,813) — Total revenues (2) 285,377 154,255 37,370 (23,813) 453,189 Segment Adjusted EBITDA Expense (3) 192,465 97,316 26,421 (21,591) 294,611 Segment Adjusted EBITDA (4) 86,377 55,465 17,547 (2,222) 157,167 Capital expenditures 26,328 11,126 484 — 37,938 Three Months Ended September 30, 2016 Revenues - Outside $ 360,221 $ 154,852 $ 37,001 $ — $ 552,074 Revenues - Intercompany 18,267 — 4,826 (23,093) — Total revenues (2) 378,488 154,852 41,827 (23,093) 552,074 Segment Adjusted EBITDA Expense (3) 227,526 94,201 26,664 (20,279) 328,112 Segment Adjusted EBITDA (4) 145,424 58,497 16,268 (2,814) 217,375 Capital expenditures 10,893 10,306 466 — 21,665 Nine Months Ended September 30, 2017 Revenues - Outside $ 763,765 $ 458,815 $ 90,409 $ — $ Revenues - Intercompany 46,740 1,390 11,985 — Total revenues (2) 810,505 460,205 102,394 (60,115) 1,312,989 Segment Adjusted EBITDA Expense (3) 504,201 276,252 67,382 Segment Adjusted EBITDA (4) 285,928 179,396 48,226 Total assets 1,406,831 468,580 454,314 Capital expenditures 66,444 37,167 1,844 — Nine Months Ended September 30, 2016 Revenues - Outside $ 921,796 $ 407,406 $ 74,851 $ — $ Revenues - Intercompany 40,448 3,806 13,723 — Total revenues (2) 962,244 411,212 88,574 (57,977) 1,404,053 Segment Adjusted EBITDA Expense (3) 567,214 261,933 63,575 Segment Adjusted EBITDA (4) 381,042 143,699 25,876 Total assets 1,541,513 480,920 370,280 Capital expenditures 41,264 27,317 1,686 — (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 nine months ended September 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Segment Adjusted EBITDA Expense $ 294,611 $ 328,112 $ 794,384 $ 843,386 Outside coal purchases — (1,514) — (1,514) Other income 774 293 2,461 545 Operating expenses (excluding depreciation, depletion and amortization) $ 295,385 $ 326,891 $ 796,845 $ 842,417 (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 nine months ended September 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Consolidated Segment Adjusted EBITDA $ 157,167 $ 217,375 $ 506,886 $ 541,976 General and administrative (15,005) (18,114) (45,982) (53,015) Depreciation, depletion and amortization (69,962) (101,432) (194,109) (245,736) Interest expense, net (10,769) (7,998) (28,822) (23,378) Debt extinguishment loss — — (8,148) — Income tax (expense) benefit (5) (7) 3 (4) Net income $ 61,426 $ 89,824 $ 229,828 $ 219,843
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Segment Adjusted EBITDA Expense $ 294,611 $ 328,112 $ 794,384 $ 843,386 Outside coal purchases — (1,514) — (1,514) Other income 774 293 2,461 545 Operating expenses (excluding depreciation, depletion and amortization) $ 295,385 $ 326,891 $ 796,845 $ 842,417
Reconciliation of consolidated Segment Adjusted EBITDA to net income	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Consolidated Segment Adjusted EBITDA $ 157,167 $ 217,375 $ 506,886 $ 541,976 General and administrative (15,005) (18,114) (45,982) (53,015) Depreciation, depletion and amortization (69,962) (101,432) (194,109) (245,736) Interest expense, net (10,769) (7,998) (28,822) (23,378) Debt extinguishment loss — — (8,148) — Income tax (expense) benefit (5) (7) 3 (4) Net income $ 61,426 $ 89,824 $ 229,828 $ 219,843

ORGANIZATION AND PRESENTATION -

ORGANIZATION AND PRESENTATION - Organization (Details) - shares	Jul. 28, 2017	Jul. 27, 2017	Sep. 30, 2017	Dec. 31, 2016
Ownership interests
Common units outstanding	130,704,217		130,704,217	74,375,025
SGP | AHGP
Ownership interests
Number of common units owned			20,641,168
ARLP | MGP
Ownership interests
Ownership percentage by general partners			0.99%
AHGP
Ownership interests
Common units outstanding			59,863,000
AHGP | MGP
Ownership interests
Ownership percentage of managing general partner by parent			100.00%
Intermediate Partnership | MGP
Ownership interests
Ownership percentage by general partners			1.0001%
Alliance Coal | MGP
Ownership interests
Ownership percentage by general partners			0.001%
ARLP | AHGP
Ownership interests
Units owned by parent			87,188,338
ARLP | SGP
Ownership interests
Number of common units owned			7,181
Ownership percentage by general partners		0.01%
MGP | Intermediate Partnership
Ownership interests
Ownership percentage by general partners			1.0001%
MGP II | AHGP
Ownership interests
Ownership percentage of managing general partner by parent	100.00%
Units owned by parent	56,100,000

ORGANIZATION AND PRESENTATION35

ORGANIZATION AND PRESENTATION - Exchange Transaction (Details) - USD ($) $ in Millions	Jul. 28, 2017	Sep. 30, 2017
MGP II | AHGP
Ownership interests
Ownership percentage of managing general partner by parent	100.00%
Exchange Transaction | General Partners' Capital (Deficit)
Ownership interests
Partners' capital, Exchange Transaction reclassification		$ (306.7)
Exchange Transaction | Limited Partners' Capital
Ownership interests
Partners' capital, Exchange Transaction reclassification		$ 306.7
Exchange Transaction | MGP
Ownership interests
Common units issued in exchange	56,100,000
Exchange Transaction | SGP
Ownership interests
Common units issued in exchange	7,181
Ownership percentage by general partners	0.01%
Exchange Transaction | SGP | Intermediate Partnership
Ownership interests
Ownership percentage by general partners	0.01%

ORGANIZATION AND PRESENTATION36

ORGANIZATION AND PRESENTATION - Investments (Details)	9 Months Ended
	Sep. 30, 2017instrument
ORGANIZATION AND PRESENTATION
Number of investments using HBLV to allocate equity in earnings or losses	0

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
INVENTORIES
Coal	$ 51,657	$ 29,242
Supplies (net of reserve for obsolescence of $5,015 and $4,940, respectively)	36,010	31,809
Total inventory	87,667	61,051
Reserve for obsolescence	$ 5,015	$ 4,940

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Estimated fair value - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Significant Observable Inputs (Level 2)
FAIR VALUE MEASUREMENTS
Long-term debt	$ 536,296	$ 559,509
Total	536,296	559,509
Significant Unobservable Inputs (Level 3)
FAIR VALUE MEASUREMENTS
Total	9,700	9,700
Recurring | Significant Unobservable Inputs (Level 3)
FAIR VALUE MEASUREMENTS
Contingent consideration	$ 9,700	$ 9,700

LONG-TERM DEBT - Components (De

LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Principal
Long-term debt including current and non-current	$ 500,000	$ 550,000
Less current maturities	(100,000)	(150,000)
Total long-term debt	400,000	400,000
Unamortized Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(14,551)	(680)
Less current maturities		126
Total unamortized debt issuance costs	(14,551)	(554)
ARLP 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	(6,936)
Securitization Facility
Principal
Long-term debt including current and non-current	100,000	100,000
Credit Agreement | Revolving credit facility
Unamortized Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	$ (7,615)
Credit Agreement | 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)
Credit Agreement | ARLP 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 ($)item	May 31, 2017USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	May 23, 2017USD ($)	Apr. 03, 2017USD ($)	Dec. 31, 2016USD ($)
Long-Term Debt
Outstanding			$ 500,000,000		$ 500,000,000			$ 550,000,000
Debt issuance costs incurred			16,221,000
Payments on term loan			50,000,000	$ 106,250,000
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					0.84
Actual cash flow to interest expense ratio for trailing twelve months					19.2
Revolving credit facility | Reduced Commitment as of May 23. 2017
Long-Term Debt
Commitment expiring							$ 33,500,000
ARLP Series B Senior Notes
Long-Term Debt
Outstanding								145,000,000
Credit Agreement | Revolving credit facility
Long-Term Debt
Debt issuance costs incurred			8,900,000
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)			3.59%		3.59%
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
Credit Agreement | Credit facility
Long-Term Debt
Maximum borrowing capacity	700,000,000
Outstanding								255,000,000
Credit Agreement | ARLP Term Loan
Long-Term Debt
Principal amount	250,000,000
Outstanding								$ 50,000,000
Senior Notes | ARLP 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	2.50
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	Sep. 30, 2017	Jan. 27, 2017
Issuance of Senior Notes
Make-whole payment			$ 8,148,000
Discount and debt issuance costs incurred			$ 16,221,000
Senior notes | Senior Notes
Issuance of Senior Notes
Discount and debt issuance costs incurred		$ 7,300,000
ARLP 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 ($)	Sep. 30, 2017	Dec. 31, 2016	Dec. 05, 2014
Long-Term Debt
Outstanding	$ 500,000,000	$ 550,000,000
Securitization Facility
Long-Term Debt
Maximum borrowing capacity			$ 100,000,000
Outstanding	$ 100,000,000	$ 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	Sep. 30, 2017	Sep. 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	$ 17,834
Funding Commitments | Bluegrass Minerals | Cavalier Minerals
Variable Interest Entities
Funding commitment	$ 37	$ 743
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 - 45

VARIABLE INTEREST ENTITIES - Cavalier Minerals Commitments (Details) - Cavalier Minerals - Funding Commitments - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Alliance Minerals
Variable Interest Entities
Beginning cumulative commitment fulfilled	$ 143,112	$ 95,597	$ 137,077	$ 63,498
Capital contributions - Cash	0	30,184	6,035	61,360
Capital contributions - AllDale Minerals' distributions received by Cavalier Minerals		385		1,308
Ending cumulative commitment fulfilled	143,112	126,166	143,112	126,166
Remaining commitment	888	17,834	888	17,834
Total committed	144,000	144,000	144,000	144,000
Bluegrass Minerals
Variable Interest Entities
Beginning cumulative commitment fulfilled	5,963	3,983	5,712	2,646
Capital contributions - Cash	0	1,258	251	2,557
Capital contributions - AllDale Minerals' distributions received by Cavalier Minerals		16		54
Ending cumulative commitment fulfilled	5,963	5,257	5,963	5,257
Remaining commitment	37	743	37	743
Total committed	$ 6,000	$ 6,000	$ 6,000	$ 6,000

VARIABLE INTEREST ENTITIES - 46

VARIABLE INTEREST ENTITIES - Cavalier Minerals Distributions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Variable Interest Entities
Distributions paid to Partners			$ 173,284	$ 194,870
Alliance Minerals
Variable Interest Entities
Distributions paid to Partners	$ 12,430	$ 1,444
Bluegrass Minerals
Variable Interest Entities
Distributions paid to Partners	$ 518	$ 60
Cavalier Minerals | Alliance Minerals
Variable Interest Entities
Distributions paid to Partners			$ 20,514	1,444
Cavalier Minerals | Bluegrass Minerals
Variable Interest Entities
Incentive distribution for noncontrolling owners (as a percent)			25.00%
Distributions paid to Partners			$ 855	$ 60
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	9 Months Ended
	Sep. 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
Variable Interest Entities
Ownership percentage by general partners	0.01%
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%

INVESTMENTS - AllDale (Details)

INVESTMENTS - AllDale (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Feb. 28, 2017
Changes in equity method investment
Beginning balance			$ 138,817
Equity in income of affiliates	$ 3,798	$ 1,105	10,414	$ 1,041
Ending balance	144,349		144,349
AllDale Partnerships
Changes in equity method investment
Beginning balance	149,592	96,670	138,817	64,509
Contributions	3,900	32,181	16,487	65,367
Equity in income of affiliates	3,798	1,105	10,414	1,041
Distributions received	(12,941)	(1,905)	(21,369)	(2,866)
Ending balance	$ 144,349	$ 128,051	$ 144,349	$ 128,051
Funding Commitments | All Dale Minerals III | Alliance Minerals
Equity method investments, additional information
Investment commitment					$ 30,000

INVESTMENTS - Kodiak (Details)

INVESTMENTS - Kodiak (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Jul. 19, 2017
Changes in investment
Contributions		$ 100,000
Ending balance	$ 102,800	102,800
Kodiak | Series A-1 Preferred Interests | Alliance Minerals
Cost method investments
Investment in affiliate			$ 100,000
Changes in investment
Beginning balance	0
Contributions	100,000
Payment-in-kind distributions received	2,800
Ending balance	$ 102,800	$ 102,800

NET INCOME OF ARLP PER LIMITE50

NET INCOME OF ARLP PER LIMITED PARTNER UNIT - Exchange Transaction (Details) - shares	Jul. 28, 2017	Sep. 30, 2017	Dec. 31, 2016
Ownership interests
ARLP common units outstanding	130,704,217	130,704,217	74,375,025
ARLP | MGP
Ownership interests
Ownership percentage by general partners		0.99%
AHGP
Ownership interests
ARLP common units outstanding		59,863,000
AHGP | MGP
Ownership interests
Ownership percentage of managing general partner by parent		100.00%
Intermediate Partnership | MGP
Ownership interests
Ownership percentage by general partners		1.0001%
Alliance Coal | MGP
Ownership interests
Ownership percentage by general partners		0.001%
MGP | Intermediate Partnership
Ownership interests
Ownership percentage by general partners		1.0001%
MGP II | AHGP
Ownership interests
Ownership percentage of managing general partner by parent	100.00%
Units owned by parent	56,100,000
Exchange Transaction | MGP
Ownership interests
Common units issued in exchange	56,100,000
Exchange Transaction | SGP
Ownership interests
Ownership percentage by general partners	0.01%
Common units issued in exchange	7,181
Exchange Transaction | SGP | Intermediate Partnership
Ownership interests
Ownership percentage by general partners	0.01%

NET INCOME OF ARLP PER LIMITE51

NET INCOME OF ARLP PER LIMITED PARTNER UNIT - Incentive Distributions (Details) - MGP	9 Months Ended
	Sep. 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 LIMITE52

NET INCOME OF ARLP PER LIMITED PARTNER UNIT - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income of ARLP	$ 61,271	$ 89,780	$ 229,403	$ 219,803
Managing general partner priority distributions		(19,159)	(19,216)	(57,477)
General partners' 2% equity ownership	(612)	(1,412)	(2,946)	(3,246)
General partners' special allocation of certain general and administrative expenses			800
LIMITED PARTNERS' INTEREST IN NET INCOME OF ARLP	60,659	69,209	208,041	159,080
Distributions to participating securities	(1,125)	(887)	(3,194)	(2,640)
Undistributed earnings attributable to participating securities		(974)	(1,001)	(1,524)
Net income of ARLP available to limited partners	$ 59,534	$ 67,348	$ 203,846	$ 154,916
Weighted average limited partner units outstanding - basic (in units)	114,237,979	74,375,025	87,924,986	74,347,157
Weighted average limited partner units outstanding - diluted (in units)	114,237,979	74,375,025	87,924,986	74,347,157
Basic net income of ARLP per limited partner unit (in dollars per unit)	$ 0.52	$ 0.91	$ 2.32	$ 2.08
Diluted net income of ARLP per limited partner unit (in dollars per unit)	$ 0.52	$ 0.91	$ 2.32	$ 2.08
Anti-dilutive under the treasury stock method (in units)	1,401,000	1,227,000	1,417,000	735,000
Pro Forma
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income of ARLP	$ 61,271	$ 89,780	$ 229,403	$ 219,803
General partners' 2% equity ownership	(612)	(899)	(2,294)	(2,200)
General partners' special allocation of certain general and administrative expenses			800
LIMITED PARTNERS' INTEREST IN NET INCOME OF ARLP	60,659	88,881	227,909	217,603
Distributions to participating securities	(1,125)	(887)	(3,194)	(2,640)
Undistributed earnings attributable to participating securities		(485)	(601)	(653)
Net income of ARLP available to limited partners	$ 59,534	$ 87,509	$ 224,114	$ 214,310
Weighted average limited partner units outstanding - basic (in units)	130,704,000	130,482,000	130,673,000	130,454,000
Pro forma basic net income of ARLP per limited partner unit (3) (in dollars per share)	$ 0.46	$ 0.67	$ 1.72	$ 1.64
Pro forma diluted net income of ARLP per limited partner unit (3) (in dollars per share)	$ 0.46	$ 0.67	$ 1.72	$ 1.64
Anti-dilutive under the treasury stock method (in units)	1,401,000	1,227,000	1,417,000	735,000
Affiliated entity controlled by Mr. Craft
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Contributions from affiliates for general and administrative expenses			$ 800
Affiliated entity controlled by Mr. Craft | Pro Forma
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Contributions from affiliates for general and administrative expenses			$ 800
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 | Pro Forma
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Common units issued in exchange	56,107,181	56,107,181	56,107,181	56,107,181

WORKERS' COMPENSATION AND PNE53

WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Workers' Compensation Liability (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reconciliation of changes in the workers' compensation liability
Beginning balance					$ 59,981	$ 56,403	$ 48,131	$ 54,558
Accruals increase					1,999	2,480	16,673	7,904
Payments					(2,357)	(2,238)	(7,799)	(8,226)
Interest accretion					421	492	1,261	1,476
Valuation loss (1)							1,778	1,425
Ending balance	$ 59,981	$ 48,131	$ 56,403	$ 54,558	$ 60,044	$ 57,137	$ 60,044	$ 57,137
Workers' compensation discount rate	3.38%	3.52%	2.89%	3.63%

WORKERS' COMPENSATION AND PNE54

WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Periodic Benefit Cost (Details) - Pneumoconiosis benefits - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accrued Workers Compensation And Pneumoconiosis Benefits
Service cost	$ 580	$ 644	$ 1,682	$ 1,936
Interest cost	649	627	1,906	1,880
Amortization of net actuarial gain (1)	(479)	(660)	(1,613)	(1,982)
Net periodic benefit cost	$ 750	$ 611	$ 1,975	$ 1,834

COMPENSATION PLANS - LTIP Grant

COMPENSATION PLANS - LTIP Grants Activity (Details) - ARLP LTIP - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 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)	475,310
Vested (in units)	(350,516)
Forfeited (in units)	(35,516)
Balance at the end of the period (in units)	1,694,026
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)	23.17
Vested (in dollars per unit)	40.73
Forfeited (in dollars per unit)	20.01
Balance at the end of the period (in dollars per unit)	$ 19.62
Intrinisic value (in dollars)
Intrinsic value of outstanding grants (in dollars)	$ 32,779	$ 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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other information
Unit-based compensation expense	$ 2.8	$ 3.1	$ 8.2	$ 9
Total unit-based obligation recorded	18.9		18.9
Unrecognized compensation expense (in dollars)	$ 14.3		$ 14.3
Weighted-average period for recognition of expense			1 year 4 months 24 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	9 Months Ended
	Sep. 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)	40,359
Balance at the end of the period (in units)	534,377
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)	21.22
Balance at the end of the period (in dollars per unit)	$ 29.13
Intrinisic value (in dollars)
Intrinsic value of outstanding grants (in dollars)	$ 10,340	$ 11,091

COMPENSATION PLANS - SERP and58

COMPENSATION PLANS - SERP and Directors Deferred Compensation Plans (Details) - SERP and Deferred Compensation Plans - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Compensation Plans
Common unit-based compensation expense	$ 0.3	$ 0.3	$ 1	$ 0.9
Total unit-based obligation recorded	$ 15.6		$ 15.6

COMPONENTS OF PENSION PLAN NE59

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Details) - USD ($) $ in Thousands	Oct. 16, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Defined benefit pension plan
Components of net periodic benefit cost:
Service cost			$ 524		$ 1,720
Interest cost		$ 1,138	1,118	$ 3,408	3,381
Expected return on plan assets		(1,240)	(1,363)	(3,743)	(3,937)
Amortization of prior service cost (1)		46		140
Amortization of net loss (1)		774	787	2,319	2,365
Net periodic benefit cost		$ 718	$ 1,066	2,124	$ 3,529
2016 plan year
Components of net periodic benefit cost:
Employer contribution payments				1,100
2017 plan year
Components of net periodic benefit cost:
Employer contribution payments	$ 600			$ 1,200

SEGMENT INFORMATION - General I

SEGMENT INFORMATION - General Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017segment	Jul. 19, 2017USD ($)
Reportable segment results
Number of reportable segments | segment	2
Alliance Minerals | Kodiak
Reportable segment results
Investment in affiliate | $		$ 100

SEGMENT INFORMATION - Segment R

SEGMENT INFORMATION - Segment Results (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Reportable segment results
Total revenues	$ 453,189	$ 552,074	$ 1,312,989	$ 1,404,053
Segment Adjusted EBITDA Expense	294,611	328,112	794,384	843,386
Segment Adjusted EBITDA	157,167	217,375	506,886	541,976
Total assets	2,206,652	2,244,275	2,206,652	2,244,275	$ 2,193,042
Capital expenditures	37,938	21,665	105,455	70,267
Additional information
Equity in income of affiliates	3,798	1,105	10,414	1,041
Investments in affiliate	144,349		144,349		$ 138,817
Illinois Basin
Reportable segment results
Total revenues	266,931	360,221	763,765	921,796
Appalachia
Reportable segment results
Total revenues	152,865	154,852	458,815	407,406
Other and Corporate
Reportable segment results
Total revenues	33,393	37,001	90,409	74,851
Operating segments | Illinois Basin
Reportable segment results
Total revenues	285,377	378,488	810,505	962,244
Segment Adjusted EBITDA Expense	192,465	227,526	504,201	567,214
Segment Adjusted EBITDA	86,377	145,424	285,928	381,042
Total assets	1,406,831	1,541,513	1,406,831	1,541,513
Capital expenditures	26,328	10,893	66,444	41,264
Operating segments | Appalachia
Reportable segment results
Total revenues	154,255	154,852	460,205	411,212
Segment Adjusted EBITDA Expense	97,316	94,201	276,252	261,933
Segment Adjusted EBITDA	55,465	58,497	179,396	143,699
Total assets	468,580	480,920	468,580	480,920
Capital expenditures	11,126	10,306	37,167	27,317
Operating segments | Other and Corporate
Reportable segment results
Total revenues	37,370	41,827	102,394	88,574
Segment Adjusted EBITDA Expense	26,421	26,664	67,382	63,575
Segment Adjusted EBITDA	17,547	16,268	48,226	25,876
Total assets	454,314	370,280	454,314	370,280
Capital expenditures	484	466	1,844	1,686
Elimination
Reportable segment results
Total revenues	(23,813)	(23,093)	(60,115)	(57,977)
Segment Adjusted EBITDA Expense	(21,591)	(20,279)	(53,451)	(49,336)
Segment Adjusted EBITDA	(2,222)	(2,814)	(6,664)	(8,641)
Total assets	(123,073)	(148,438)	(123,073)	(148,438)
Elimination | Illinois Basin
Reportable segment results
Total revenues	18,446	18,267	46,740	40,448
Elimination | Appalachia
Reportable segment results
Total revenues	1,390		1,390	3,806
Elimination | Other and Corporate
Reportable segment results
Total revenues	$ 3,977	$ 4,826	$ 11,985	$ 13,723

SEGMENT INFORMATION - EBITDA Ex

SEGMENT INFORMATION - EBITDA Expense Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)
Segment Adjusted EBITDA Expense	$ 294,611	$ 328,112	$ 794,384	$ 843,386
Outside coal purchases		(1,514)		(1,514)
Other income	774	293	2,461	545
Operating expenses (excluding depreciation, depletion and amortization)	$ 295,385	$ 326,891	$ 796,845	$ 842,417

SEGMENT INFORMATION - EBITDA Re

SEGMENT INFORMATION - EBITDA Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reconciliation of consolidated Segment Adjusted EBITDA to net income
Consolidated Segment Adjusted EBITDA	$ 157,167	$ 217,375	$ 506,886	$ 541,976
General and administrative	(15,005)	(18,114)	(45,982)	(53,015)
Depreciation, depletion and amortization	(69,962)	(101,432)	(194,109)	(245,736)
Interest expense, net	(10,769)	(7,998)	(28,822)	(23,378)
Debt extinguishment loss			(8,148)
Income tax (expense) benefit	(5)	(7)	3	(4)
NET INCOME	$ 61,426	$ 89,824	$ 229,828	$ 219,843

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent event $ / shares in Units, $ in Millions	Oct. 27, 2017USD ($)$ / shares
Subsequent Event
Distribution declared (in dollars per unit) | $ / shares	$ 0.505
Approximate distribution to be paid	$ 66.7
General Partners' Capital (Deficit)
Subsequent Event
Approximate distribution to be paid	$ 0.7