Alliance Resource Partners (ARLP) 10-Q 7 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 07, 2018
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	Mar. 31, 2018
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		130,903,256
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 28,764	$ 6,756
Trade receivables	157,798	181,671
Other receivables	229	146
Due from affiliates	669	165
Inventories, net	83,944	60,275
Advance royalties, net	2,856	4,510
Prepaid expenses and other assets	19,846	28,117
Total current assets	294,106	281,640
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost	2,983,666	2,934,188
Less accumulated depreciation, depletion and amortization	(1,520,732)	(1,457,532)
Total property, plant and equipment, net	1,462,934	1,476,656
OTHER ASSETS:
Advance royalties, net	50,800	39,660
Equity method investments	158,669	147,964
Equity securities	110,122	106,398
Goodwill	136,399	136,399
Other long-term assets	30,384	30,654
Total other assets	486,374	461,075
TOTAL ASSETS	2,243,414	2,219,371
CURRENT LIABILITIES:
Accounts payable	92,745	96,958
Due to affiliates		771
Accrued taxes other than income taxes	20,270	20,336
Accrued payroll and related expenses	34,530	35,751
Accrued interest	12,499	5,005
Workers' compensation and pneumoconiosis benefits	10,769	10,729
Current capital lease obligations	28,948	28,613
Other current liabilities	16,732	19,071
Current maturities, long-term debt, net	40,000	72,400
Total current liabilities	256,493	289,634
LONG-TERM LIABILITIES:
Long-term debt, excluding current maturities, net	386,703	415,937
Pneumoconiosis benefits	72,509	71,875
Accrued pension benefit	42,906	45,317
Workers' compensation	46,861	46,694
Asset retirement obligations	126,287	126,750
Long-term capital lease obligations	50,634	57,091
Other liabilities	20,055	14,587
Total long-term liabilities	745,955	778,251
Total liabilities	1,002,448	1,067,885
Alliance Resource Partners, L.P. ("ARLP") Partners' Capital:
Limited Partners - Common Unitholders 130,903,256 and 130,704,217 units outstanding, respectively	1,270,769	1,183,219
General Partner's interest	15,786	14,859
Accumulated other comprehensive loss	(50,923)	(51,940)
Total ARLP Partners' Capital	1,235,632	1,146,138
Noncontrolling interest	5,334	5,348
Total Partners' Capital	1,240,966	1,151,486
TOTAL LIABILITIES AND PARTNERS' CAPITAL	$ 2,243,414	$ 2,219,371

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Mar. 31, 2018	Dec. 31, 2017
CONDENSED CONSOLIDATED BALANCE SHEETS
Common units outstanding	130,903,256	130,704,217

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
SALES AND OPERATING REVENUES:
Revenues	$ 457,122	$ 461,080
EXPENSES:
Operating expenses (excluding depreciation, depletion and amortization)	277,238	262,027
Outside coal purchases	1,374
General and administrative	16,651	16,033
Depreciation, depletion and amortization	61,848	65,127
Settlement gain	(80,000)
Total operating expenses	296,896	352,783
INCOME FROM OPERATIONS	160,226	108,297
Interest expense (net of interest capitalized for the three months ended March 31, 2018 and 2017 of $265 and $81, respectively)	(10,858)	(7,516)
Interest income	65	24
Equity method investment income	3,736	3,700
Equity securities income	3,724
Other (expense) income	(847)	533
INCOME BEFORE INCOME TAXES	156,046	105,038
INCOME TAX BENEFIT	(10)	(12)
NET INCOME	156,056	105,050
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	(148)	(148)
NET INCOME ATTRIBUTABLE TO ALLIANCE RESOURCE PARTNERS, L.P. ("NET INCOME OF ARLP")	155,908	104,902
GENERAL PARTNERS' INTEREST IN NET INCOME OF ARLP	1,560	20,146
LIMITED PARTNERS' INTEREST IN NET INCOME OF ARLP	$ 154,348	$ 84,756
BASIC NET INCOME OF ARLP PER LIMITED PARTNER UNIT (in dollars per unit)	$ 1.16	$ 1.10
DILUTED NET INCOME OF ARLP PER LIMITED PARTNER UNIT (in dollars per unit)	1.16	1.10
DISTRIBUTIONS PAID PER LIMITED PARTNER UNIT (in dollars per unit)	$ 0.5100	$ 0.4375
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING - BASIC (in units)	130,819,217	74,503,298
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING - DILUTED (in units)	130,819,217	74,503,298
Coal
SALES AND OPERATING REVENUES:
Revenues	$ 423,610	$ 438,744
EXPENSES:
Operating expenses (excluding depreciation, depletion and amortization)	277,238	262,027
Transportation revenues
SALES AND OPERATING REVENUES:
Revenues	19,785	9,596
EXPENSES:
Operating expenses (excluding depreciation, depletion and amortization)	19,785	9,596
Other sales and operating revenues
SALES AND OPERATING REVENUES:
Revenues	$ 13,727	$ 12,740

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Interest expense, interest capitalized	$ 265	$ 81

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
NET INCOME		$ 156,056	$ 105,050
OTHER COMPREHENSIVE INCOME/(LOSS):
OTHER COMPREHENSIVE INCOME (LOSS)		1,017	253
COMPREHENSIVE INCOME		157,073	105,303
Less: Comprehensive (income) loss attributable to noncontrolling interest		(148)	(148)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ARLP		156,925	105,155
Defined benefit pension plan
OTHER COMPREHENSIVE INCOME/(LOSS):
Amortization of prior service cost (1)	[1]	47	47
Amortization of net actuarial loss (gain) (1)	[1]	969	773
Total adjustments		1,016	820
Pneumoconiosis benefits
OTHER COMPREHENSIVE INCOME/(LOSS):
Amortization of net actuarial loss (gain) (1)	[1]	1	(567)
Total adjustments		$ 1	$ (567)
[1]	Amortization of prior service cost and net actuarial gain or loss is included in the computation of net periodic benefit cost (see Notes 11 and 13 for additional details).

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
CASH FLOWS FROM OPERATING ACTIVITIES	$ 224,178	$ 177,011
Property, plant and equipment:
Capital expenditures	(51,525)	(30,346)
Increase (decrease) in accounts payable and accrued liabilities	(15)	2,144
Proceeds from sale of property, plant and equipment	7	453
Contributions to equity method investments	(11,400)	(9,287)
Distributions received from investments in excess of cumulative earnings	736	1,191
Net cash used in investing activities	(62,197)	(35,845)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under securitization facility	37,600
Payments under securitization facility	(70,000)
Borrowings under revolving credit facilities	70,000
Payments under revolving credit facilities	(100,000)	(25,000)
Payments on capital lease obligations	(6,974)	(6,678)
Payment of debt issuance costs		(6,664)
Contributions to consolidated company from affiliate noncontrolling interest		251
Net settlement of withholding taxes on issuance of units in deferred compensation plans	(2,081)	(2,988)
Cash contributions by General Partners	41	905
Distributions paid to Partners	(68,396)	(53,224)
Other	(163)	(190)
Net cash used in financing activities	(139,973)	(93,588)
NET CHANGE IN CASH AND CASH EQUIVALENTS	22,008	47,578
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	6,756	39,782
CASH AND CASH EQUIVALENTS AT END OF PERIOD	28,764	87,360
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	2,995	4,708
NON-CASH INVESTING AND FINANCING ACTIVITY:
Accounts payable for purchase of property, plant and equipment	15,621	10,376
Assets acquired by capital lease	835
Market value of common units issued under deferred compensation plans before tax withholding requirements	$ 6,142	$ 8,149

ORGANIZATION AND PRESENTATION

ORGANIZATION AND PRESENTATION	3 Months Ended
	Mar. 31, 2018
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. · 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 130,903,256 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 In 2017, the board of directors of our general partner and its conflicts committee unanimously approved a transaction to simplify our partnership structure and on July 28, 2017, MGP contributed to ARLP all of its incentive distribution rights ("IDRs") and its 0.99% 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. Simultaneously with the Exchange Transaction discussed above, MGP became a wholly owned subsidiary of MGP II, LLC ("MGP II") which is directly and indirectly 100% owned by AHGP and was created in connection with the Exchange Transaction. As of March 31, 2018, MGP II held 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 March 31, 2018 and December 31, 2017 and the results of operations, comprehensive income and cash flows for the three months ended March 31, 2018 and 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 10 – 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 for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2018. 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, 2017. 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 equity securities without readily determinable fair values in entities in which we do not have a controlling financial interest or significant influence are accounted for using a measurement alternative other than fair value which is historical cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same entity. 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. We account for our ownership interests in Kodiak Gas Services, LLC ("Kodiak") as equity securities without readily determinable fair values. See Note 8 – Investments for further discussion of this investment. Our investments and ownership interests in entities in which we do not have a controlling financial interest are accounted for under the equity method of accounting if we have the ability to exercise significant influence over the entity. 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. Our equity method investments include AllDale Minerals, LP ("AllDale I"), and AllDale Minerals II, LP ("AllDale II") (collectively "AllDale Minerals"), both held by our affiliate Cavalier Minerals JV, LLC ("Cavalier Minerals") and AllDale Minerals III, LP ("AllDale III") which is held through our subsidiary, Alliance Minerals, LLC ("Alliance Minerals"). AllDale III and AllDale Minerals are collectively referred to as the "AllDale Partnerships." See Note 8 – Investments for further discussion of these equity method investments. We review our equity securities and our equity method investments for impairment whenever events or changes in circumstances indicate a loss in the value of the investment may be other-than-temporary. Revenue Recognition Revenues from coal supply contracts with customers are recognized at the point in time when control of the coal passes to the customer. We have determined that each ton of coal represents a separate and distinct performance obligation. Our coal supply contracts and other sales and operating revenue contracts vary in length from short-term to long-term contracts and do not typically have significant financing components. Transportation revenues represent the fulfillment costs incurred for the services provided to customers through third-party carriers and for which we are directly reimbursed. Other sales and operating revenues primarily consist of transloading fees, administrative service revenues from our affiliates, mine safety services and products, other coal contract fees and other handling and service fees. Performance obligations under these contracts are typically satisfied upon transfer of control of the goods or services to our customer which is determined by the contract and could be upon shipment or upon delivery. The estimated transaction price from each of our contracts is based on the total amount of consideration we expect to be entitled to under the contract. Included in the transaction price for certain coal supply contracts is the impact of variable consideration, including quality price adjustments, handling services, government imposition claims, per ton price fluctuations based on certain coal sales price indices and anticipated payments in lieu of shipments. We have constrained the expected value of variable consideration in our estimation of transaction price and only included this consideration to the extent that it is probable that a significant revenue reversal will not occur. The estimated transaction price for each contract is allocated to our performance obligations based on relative standalone selling prices determined at contract inception. Variable consideration is allocated to a specific part of the contract in many instances, such as if the variable consideration is based on production activities for coal delivered during a certain period or the outcome of a customer's ability to accept coal shipments over a certain period. Contract assets are recorded as trade receivables and reported separately in our consolidated balance sheet from other contract assets as title passes to the customer and our right to consideration becomes unconditional. Payments for coal shipments are typically due within two to four weeks of performance. We typically do not have material contract assets that are stated separately from trade receivables as our performance obligations are satisfied as control of the goods or services passes to the customer thereby granting us an unconditional right to receive consideration. Contract liabilities relate to consideration received in advance of the satisfaction of our performance obligations. Contract liabilities are recognized as revenue at the point in time when control of the good or service passes to the customer.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	3 Months Ended
	Mar. 31, 2018
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS	2. New Accounting Standards Issued and Adopted In March 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. ASU 2017-07 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The adoption of ASU 2017-07 did not have a material impact on our condensed consolidated financial statements. The new presentation requirements in the guidance were applied retrospectively to all periods presented using the amounts of other components of net benefit cost previously disclosed in prior period footnotes. The requirement under the guidance to only capitalize the service cost component was applied prospectively. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). ASU 2016-01 will require entities to measure equity investments at fair value and recognize any changes in fair value in net income. The guidance removes the cost method of accounting for equity investments without a readily determinable fair value, but provides a new measurement alternative where entities may choose to measure those investments at cost, less any impairment, plus or minus any changes resulting from observable price changes in transactions for the same issuer. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-01 did not have a material impact on our condensed consolidated financial statements. 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. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The adoption of the new standard did not have a material impact on our condensed consolidated financial statements, but requires 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 elected to use the modified retrospective method of adoption, which allows a cumulative effect adjustment to equity as of the date of adoption. As there was no change in the recognition pattern of our revenues, we did not have a cumulative effect adjustment upon adoption of the new standard. See Note 9 – Revenue from Contracts with Customers for additional information. New Accounting Standards Issued and Not Yet Adopted 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 condensed 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. The FASB continues to issue clarifications, updates and implementation guidance to ASU 2016-02 which we continue to monitor, such as ASU 2018-01, Leases (Topic 842) ("ASU 2018-01") which provides a land easement practical expedient for transition to Topic 842. This update allows for companies that did not previously recognize land easements as leases to continue this practice for existing leases, but will still require the evaluation of new lease arrangements, including land easements. We have developed an assessment team to determine the effect of adopting ASU 2016-02. As part of the assessment process, management has provided education and guidance to business units regarding the new standard. We have also started compiling and reviewing our population of leases and assessing our systems and internal controls relating to our accounting for leases. In addition to monitoring FASB activity regarding ASU 2016-02, we are continuing to monitor various non-authoritative groups with respect to implementation issues that could affect our assessment.

CONTINGENCIES

CONTINGENCIES	3 Months Ended
	Mar. 31, 2018
CONTINGENCIES
CONTINGENCIES	3. On March 9, 2018, we finalized an agreement with a customer and certain of its affiliates to settle breach of contract litigation we initiated in January 2015. The agreement provided for a $93.0 million cash payment to us, execution of a new coal supply agreement with the customer, continued export transloading capacity for our Appalachian mines and the rights to acquire certain coal reserves for $2.0 million from an affiliate of the customer. We estimated total consideration received in the agreement to be a $93.0 million cash payment. We accrued $13.0 million of legal fees and associated incentive compensation costs related to this settlement which resulted in a net gain of $80.0 million reflected in the Settlement gain line item in our condensed consolidated statements of income. 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	3 Months Ended
	Mar. 31, 2018
INVENTORIES
INVENTORIES	4. Inventories consist of the following: March 31, December 31, 2018 2017 (in thousands) Coal $ 46,784 $ 22,825 Supplies (net of reserve for obsolescence of $5,254 and $5,149, respectively) 37,160 37,450 Total inventories, net $ 83,944 $ 60,275

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2018
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	5. The following table summarizes our fair value measurements within the hierarchy: March 31, 2018 December 31, 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Measured on a recurring basis: Contingent consideration $ — $ — $ 6,800 $ — $ — $ 6,800 Additional disclosures: Long-term debt — 480,280 — — 541,147 — Total $ — $ 480,280 $ 6,800 $ — $ 541,147 $ 6,800 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	3 Months Ended
	Mar. 31, 2018
LONG-TERM DEBT
LONG-TERM DEBT	6. Long-term debt consists of the following: Unamortized Discount and Principal Debt Issuance Costs March 31, December 31, March 31, December 31, 2018 2017 2018 2017 (in thousands) Revolving Credit facility $ — $ 30,000 $ (6,818) $ (7,356) Senior notes 400,000 400,000 (6,479) (6,707) Securitization facility 40,000 72,400 — — 440,000 502,400 (13,297) (14,063) Less current maturities (40,000) (72,400) — — Total long-term debt $ 400,000 $ 430,000 $ (13,297) $ (14,063) On January 27, 2017, our Intermediate Partnership entered into a Fourth Amended and Restated Credit Agreement (the "Credit Agreement") with various financial institutions. The Credit Agreement provides for a $494.75 million revolving credit facility, 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"), with a termination date of May 23, 2019. The Credit Agreement was amended on April 3, 2017 to extend the termination date of the Revolving Credit Facility as to $461.25 million of the $494.75 million of commitments to May 23, 2021 and effectuate certain other changes. 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. Borrowings under the Revolving 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). The Eurodollar Rate, with applicable margin, under the Credit Facility was 4.07% as of March 31, 2018. At March 31, 2018, 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, scheduled debt payments and distribution payments. The Credit Agreement contains various restrictions affecting our Intermediate Partnership and its subsidiaries including, among other things, restrictions on incurrence of additional indebtedness and liens, sale of assets, investments, mergers and consolidations and transactions with affiliates, in each case 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). See Note 7 – Variable Interest Entities for further discussion of restrictions on the cash available for distribution. The Credit Agreement requires the Intermediate Partnership to maintain (a) a debt to cash flow ratio of not more than 2.5 to 1.0 and (b) a cash flow to interest expense ratio of not less than 3.0 to 1.0, in each case, during the four most recently ended fiscal quarters. The debt to cash flow ratio and cash flow to interest expense ratio were 0.75 to 1.0 and 16.0 to 1.0, respectively, for the trailing twelve months ended March 31, 2018. We remain in compliance with the covenants of the Credit Agreement as of March 31, 2018. 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. 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. 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 January 2018 and matures in January 2019. At March 31, 2018, we had $40.0 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. Mineral Lending's obligation to make the line of credit available terminates no later than October 6, 2019. Borrowings under the Cavalier Credit Facility bear interest at a one month LIBOR rate plus 6% with interest payable quarterly, and mature on September 30, 2024, at which time all amounts then outstanding are required to be repaid. The Cavalier Credit Agreement requires repayment of the principal balance beginning in 2018, 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. 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 March 31, 2018, Cavalier Minerals had not drawn on the Cavalier Credit Facility. 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	3 Months Ended
	Mar. 31, 2018
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. Alliance Minerals and Bluegrass Minerals contributed $143.1 million and $6.0 million, respectively, to Cavalier Minerals, which sufficiently completed funding to Cavalier Minerals for these commitments. 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 March 31, 2018 2017 (in thousands) Alliance Minerals $ 3,888 $ 4,563 Bluegrass Minerals 162 190 Alliance Minerals' ownership interest in Cavalier Minerals is 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 three months ended March 31, 2018, we paid $10.8 million of advanced royalties to WKY CoalPlay. As of March 31, 2018, we had $40.7 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 to MGP). 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. MGP, as the managing member of Alliance Coal and the 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	3 Months Ended
	Mar. 31, 2018
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 14 – 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 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 March 31, 2018 2017 (in thousands) Beginning balance $ 147,964 $ 138,817 Contributions 11,400 9,287 Equity method investment income 3,736 3,700 Distributions received (4,431) (4,752) Ending balance $ 158,669 $ 147,052 Kodiak On July 19, 2017, Alliance Minerals purchased $100 million of Series A-1 Preferred Interests from Kodiak, a privately-held company providing large-scale, high-utilization gas 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 equity securities without readily determinable fair values. 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, therefore we use a measurement alternative other than fair value to account for our investment. The changes in our investment in Kodiak for the three months ended March 31, 2018 were as follows: Three Months Ended March 31, 2018 (in thousands) Beginning balance $ 106,398 Payment-in-kind distributions received 3,724 Ending balance $ 110,122

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	3 Months Ended
	Mar. 31, 2018
REVENUE FROM CONTRACTS WITH CUSTOMERS
REVENUE FROM CONTRACTS WITH CUSTOMERS	9. The following table illustrates the disaggregation of our revenues by type, including a reconciliation to our segment presentation as presented in Note 14 – Segment Information, for the three months ended March 31, 2018 and 2017. Illinois Other and Basin Appalachia Corporate Elimination Consolidated (in thousands) Three Months Ended March 31, 2018 Coal sales $ 276,065 $ 145,289 $ 7,711 $ (5,455) $ Transportation revenues 18,271 1,514 — — Other sales and operating revenues 569 829 16,619 (4,290) Total revenues $ 294,905 $ 147,632 $ 24,330 $ (9,745) $ 457,122 Three Months Ended March 31, 2017 Coal sales $ 266,928 $ 167,773 $ 15,248 $ (11,205) $ Transportation revenues 7,855 1,741 — — Other sales and operating revenues 772 730 15,351 (4,113) Total revenues $ 275,555 $ 170,244 $ 30,599 $ (15,318) $ 461,080 The following table illustrates the amount of our transaction price for all current coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2018 and disaggregated by segment and contract duration. 2021 and 2018 2019 2020 Thereafter Total (in thousands) Illinois Basin coal revenues $ 740,763 $ 312,605 $ 238,386 $ 51,790 $ Appalachia coal revenues 470,006 284,994 157,843 38,224 Other and Corporate coal revenues 61,346 22,666 — — Elimination (47,028) (17,035) — — Total coal revenues (1) $ 1,225,087 $ 603,230 $ 396,229 $ 90,014 $ 2,314,560 (1) Coal revenues consists of coal sales and transportation revenues. .

NET INCOME OF ARLP PER LIMITED

NET INCOME OF ARLP PER LIMITED PARTNER UNIT	3 Months Ended
	Mar. 31, 2018
NET INCOME OF ARLP PER LIMITED PARTNER UNIT
NET INCOME OF ARLP PER LIMITED PARTNER UNIT	10. 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. 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 months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 2017 (in thousands, except per unit data) Net income of ARLP $ 155,908 $ 104,902 Adjustments: MGP's priority distributions (1) — (19,216) General partners' equity ownership (1) (1,560) (1,730) General partners' special allocation of certain general and administrative expenses (2) — 800 Limited partners' interest in net income of ARLP 154,348 84,756 Less: Distributions to participating securities (1,271) (966) Undistributed earnings attributable to participating securities (1,548) (1,465) Net income of ARLP available to limited partners $ 151,529 $ 82,325 Weighted-average limited partner units outstanding – basic and diluted 130,819 74,503 Basic and diluted net income of ARLP per limited partner unit (3) $ 1.16 $ 1.10 (1) Amounts for the three months ended March 31, 2018 reflect the impact of the Exchange Transaction eliminating 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 first quarter of 2018, all of the first quarter earnings less the Intermediate Partnership's general partner interest were allocated to ARLP's limited partners. The Exchange Transaction also converted SGP's nominal general partnership interest to the limited partner interest. (2) During the three months ended March 31, 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 1,532 and 1,427 for the three months ended March 31, 2018 and 2017, 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, 2017, 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 months ended March 31, 2018 and 2017 are as follows: Three Months Ended March 31, 2018 2017 (in thousands, except per unit data) Net income of ARLP $ 155,908 $ 104,902 Adjustments: General partner's equity ownership (1,560) (1,050) General partner's special allocation of certain general and administrative expenses (1) — 800 Limited partners' interest in net income of ARLP 154,348 104,652 Less: Distributions to participating securities (1,271) (966) Undistributed earnings attributable to participating securities (1,548) (769) Net income of ARLP available to limited partners (2) $ 151,529 $ 102,917 Weighted-average limited partner units outstanding – basic and diluted (2) 130,819 130,610 Pro forma basic and diluted net income of ARLP per limited partner unit (3) $ 1.16 $ 0.79 (1) During the three months ended March 31, 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 subsequent to the Exchange Transaction. Accordingly, the Adjustment - General partner's 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 1,532 and 1,427 for the three months ended March 31, 2018 and 2017, respectively, were considered anti-dilutive under the treasury stock method.

WORKERS' COMPENSATION AND PNEUM

WORKERS' COMPENSATION AND PNEUMOCONIOSIS	3 Months Ended
	Mar. 31, 2018
WORKERS' COMPENSATION AND PNEUMOCONIOSIS
WORKERS' COMPENSATION AND PNEUMOCONIOSIS	11. The changes in the workers' compensation liability, including current and long-term liability balances, for each of the periods presented were as follows: Three Months Ended March 31, 2018 2017 (in thousands) Beginning balance $ 54,439 $ 48,131 Accruals increase 2,641 1,974 Payments (2,797) (2,925) Interest accretion 363 420 Ending balance $ 54,646 $ 47,600 We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a claim have been met. The deductible level may vary by claim year. Our workers' compensation liability above is presented on a gross basis and does not include our expected receivables on our insurance policy. Our receivables for traumatic injury claims under this policy as of March 31, 2018 are $9.0 million and are included in Other long-term assets on our condensed consolidated balance sheet. Certain of our mine operating entities are liable under state statutes and the Federal Coal Mine Health and Safety Act of 1969, as amended, to pay pneumoconiosis, or black lung, benefits to eligible employees and former employees and their dependents. Components of the net periodic benefit cost for each of the periods presented are as follows: Three Months Ended March 31, 2018 2017 (in thousands) Service cost $ 630 $ 546 Interest cost (1) 635 629 Net amortization (1) 1 (567) Net periodic benefit cost $ 1,266 $ 608 (1) Interest cost and net amortization is included in the Other income (expense) line item within our condensed consolidated statements of income (see Note 2. New Accounting Standards). .

COMPENSATION PLANS

COMPENSATION PLANS	3 Months Ended
	Mar. 31, 2018
COMPENSATION PLANS
COMPENSATION PLANS	12. 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 is subject to the satisfaction of certain financial tests, which management currently believes is probable. Grants issued to LTIP participants are expected to cliff vest on January 1st of the third year following issuance of the grants. We account for forfeitures of non-vested LTIP grants as they occur. 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 employee tax withholding obligations of LTIP participants. As provided under the distribution equivalent rights ("DERs") 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 at the discretion of the Compensation Committee, 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 three months ended March 31, 2018 is as follows: Number of units Weighted average grant date fair value per unit Intrinsic value (in thousands) Non-vested grants at January 1, 2018 1,694,026 $ $ 33,372 Granted Vested (1) Forfeited Non-vested grants at March 31, 2018 33,494 (1) During the three months ended March 31, 2018, we issued 191,858 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 $2.7 million and $2.6 million for the three months ended March 31, 2018 and 2017, respectively. The total obligation associated with the LTIP as of March 31, 2018 was $13.6 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets. As of March 31, 2018, there was $18.9 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 1.5 years. After consideration of the January 1, 2018 vesting and subsequent issuance of 191,858 common units, approximately 2.1 million units remain available under the LTIP for issuance in the future, assuming all grants issued in 2018, 2017 and 2016 and currently outstanding are settled with common units without reduction for tax withholding, no future forfeitures occur and DERs continue being paid in cash versus additional phantom units. 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 three months ended March 31, 2018 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, 2018 561,784 $ $ 11,067 Granted 18,676 Issued (1) (10,364) Phantom units outstanding as of March 31, 2018 570,096 10,062 (1) During the three months ended March 31, 2018, we issued 7,181 ARLP common units to a participant under the SERP. Units issued to this participant were net of units settled in cash to satisfy tax withholding obligations. Total SERP and Deferred Compensation Plan expense was $0.4 million and $0.3 million for the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018, the total obligation associated with the SERP and Deferred Compensation Plan was $16.1 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	3 Months Ended
	Mar. 31, 2018
EMPLOYEE BENEFIT PLANS
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS	13. Eligible employees at certain of our mining operations participate in a defined benefit plan (the "Pension Plan") that we sponsor. The Pension Plan is currently closed to new applicants and participants in the Pension Plan are no longer receiving benefit accruals for service. The benefit formula for the Pension Plan is a fixed dollar unit based on years of service. Components of the net periodic benefit cost for each of the periods presented are as follows: Three Months Ended March 31, 2018 2017 (in thousands) Interest cost $ 1,116 $ 1,135 Expected return on plan assets (1,436) (1,252) Amortization of prior service cost 47 47 Amortization of net loss 969 773 Net periodic benefit cost (1) $ 696 $ 703 (1) Net periodic benefit cost for the Pension Plan is included in the Other income (expense) line item within our condensed consolidated statements of income (see Note 2. New Accounting Standards). During the three months ended March 31, 2018, we made contribution payments of $0.7 million to the Pension Plan for the 2017 plan year and $1.5 million for the 2018 plan year. On April 13, 2018, we made a contribution payment of $0.7 million for the 2018 plan year.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2018
SEGMENT INFORMATION
SEGMENT INFORMATION	14. 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 was idled in the fourth quarter of 2015 in response to market conditions but is expected to resume production in May 2018. 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 prior workers' compensation and pneumoconiosis liabilities, Wildcat Insurance, LLC ("Wildcat Insurance"), which assists the ARLP Partnership with its insurance requirements, 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), our investment in Kodiak (Note 8 – Investments) and AROP Funding and Alliance Finance (both discussed in Note 6 – Long-Term Debt). Reportable segment results as of and for the three months ended March 31, 2018 and 2017 are presented below. Illinois Other and Elimination Basin Appalachia Corporate (1) Consolidated (in thousands) Three Months Ended March 31, 2018 Revenues - Outside $ 289,518 $ 147,565 $ 20,039 $ — $ Revenues - Intercompany 5,387 67 4,291 — Total revenues (2) 294,905 147,632 24,330 (9,745) 457,122 Segment Adjusted EBITDA Expense (3) 181,803 92,498 12,798 Segment Adjusted EBITDA (4) 94,830 53,621 18,992 Total assets 1,425,798 463,857 522,307 Capital expenditures 37,448 13,376 701 — Three Months Ended March 31, 2017 Revenues - Outside $ 264,350 $ 170,244 $ 26,486 $ — $ Revenues - Intercompany 11,205 — 4,113 — Total revenues (2) 275,555 170,244 30,599 (15,318) 461,080 Segment Adjusted EBITDA Expense (3) 161,437 95,317 17,838 Segment Adjusted EBITDA (4) 106,263 73,187 16,461 Total assets 1,426,551 479,375 416,379 Capital expenditures 17,189 12,780 377 — (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. The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to Operating expenses (excluding depreciation, depletion and amortization) : Three Months Ended March 31, 2018 2017 (in thousands) Segment Adjusted EBITDA Expense $ 279,459 $ 261,494 Outside coal purchases (1,374) — Other (expense) income (847) 533 Operating expenses (excluding depreciation, depletion and amortization) $ 277,238 $ 262,027 (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 settlement gain. 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. Consolidated Segment Adjusted EBITDA is reconciled to net income as follows: Three Months Ended March 31, 2018 2017 (in thousands) Consolidated Segment Adjusted EBITDA $ 165,338 $ 193,690 General and administrative (16,651) (16,033) Depreciation, depletion and amortization (61,848) (65,127) Settlement gain 80,000 — Interest expense, net (10,793) (7,492) Income tax benefit 10 12 Net income $ 156,056 $ 105,050 .

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2018
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	15. On April 27, 2018, we declared a quarterly distribution for the quarter ended March 31, 2018 of $0.515 per unit on all common units outstanding, totaling approximately $68.1 million, including distributions of $0.7 million to MGP with respect to its general partner interest in the Intermediate Partnership, payable on May 15, 2018 to all unitholders of record as of May 8, 2018. Simplification Transactions On February 22, 2018, our Board of Directors and the board of directors of AHGP's general partner approved a simplification agreement (the "Simplification Agreement"), pursuant to which, among other things, through a series of transactions (the "Simplification Transactions"), (i) AHGP would become a wholly owned subsidiary of ARLP, (ii) all of the issued and outstanding AHGP common units would be canceled and converted into the right to receive the ARLP common units held by AHGP and its subsidiaries, (iii) in exchange for a number of ARLP common units calculated pursuant to the Simplification Agreement, MGP's 1.0001% general partner interest in our Intermediate Partnership and MGP's 0.001% managing member interest in our subsidiary, Alliance Coal, would be contributed to us, and (iv) MGP will remain the sole general partner of ARLP, and thus no control, management, or governance changes with respect to our business is expected to occur. The consummation of the Simplification Transactions requires the SEC declare the effectiveness of a registration statement on Form S-4 under the Securities Act of 1933 to register the distribution of the ARLP common units currently held by AHGP and its subsidiaries to AHGP's unitholders upon closing of the Simplification Transactions. ARLP filed a preliminary Form S-4 on March 29, 2018, which was declared effective on April 26, 2018. The consummation of the Simplification Transactions also requires the affirmative vote or consent of the holders of a majority of the outstanding AHGP common units. AHGP mailed consent solicitation statements to AHGP unitholders of record as of April 25, 2018. Certain AHGP unitholders, which collectively owned a majority of the outstanding AHGP common units as of the consent record date, have delivered written consents approving the Simplification Agreement pursuant to a support agreement. The Simplification Transactions are expected to close during the second quarter of 2018 subsequent to the filing of this Form 10-Q. The Simplification Transactions will be accounted for prospectively as an exchange of equity interests between entities under common control when ARLP common units are issued to SGP in exchange for the contribution of the limited partner interests in AHGP, which, as previously discussed, owns indirectly a 1.0001% general partner interest in the Intermediate Partnership and the 0.001% managing member interest in Alliance Coal. Since ARLP and AHGP are under common control both before and after the Simplification Transactions, no fair value adjustment will be made to the assets or liabilities of AHGP and no gain or loss will be recognized on our condensed consolidated financial statements.

ORGANIZATION AND PRESENTATION (

ORGANIZATION AND PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2018
ORGANIZATION AND PRESENTATION
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 March 31, 2018 and December 31, 2017 and the results of operations, comprehensive income and cash flows for the three months ended March 31, 2018 and 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 10 – 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 for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2018. 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, 2017.
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 equity securities without readily determinable fair values in entities in which we do not have a controlling financial interest or significant influence are accounted for using a measurement alternative other than fair value which is historical cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same entity. 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. We account for our ownership interests in Kodiak Gas Services, LLC ("Kodiak") as equity securities without readily determinable fair values. See Note 8 – Investments for further discussion of this investment. Our investments and ownership interests in entities in which we do not have a controlling financial interest are accounted for under the equity method of accounting if we have the ability to exercise significant influence over the entity. 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. Our equity method investments include AllDale Minerals, LP ("AllDale I"), and AllDale Minerals II, LP ("AllDale II") (collectively "AllDale Minerals"), both held by our affiliate Cavalier Minerals JV, LLC ("Cavalier Minerals") and AllDale Minerals III, LP ("AllDale III") which is held through our subsidiary, Alliance Minerals, LLC ("Alliance Minerals"). AllDale III and AllDale Minerals are collectively referred to as the "AllDale Partnerships." See Note 8 – Investments for further discussion of these equity method investments. We review our equity securities and our equity method investments for impairment whenever events or changes in circumstances indicate a loss in the value of the investment may be other-than-temporary.
Revenue Recognition	Revenue Recognition Revenues from coal supply contracts with customers are recognized at the point in time when control of the coal passes to the customer. We have determined that each ton of coal represents a separate and distinct performance obligation. Our coal supply contracts and other sales and operating revenue contracts vary in length from short-term to long-term contracts and do not typically have significant financing components. Transportation revenues represent the fulfillment costs incurred for the services provided to customers through third-party carriers and for which we are directly reimbursed. Other sales and operating revenues primarily consist of transloading fees, administrative service revenues from our affiliates, mine safety services and products, other coal contract fees and other handling and service fees. Performance obligations under these contracts are typically satisfied upon transfer of control of the goods or services to our customer which is determined by the contract and could be upon shipment or upon delivery. The estimated transaction price from each of our contracts is based on the total amount of consideration we expect to be entitled to under the contract. Included in the transaction price for certain coal supply contracts is the impact of variable consideration, including quality price adjustments, handling services, government imposition claims, per ton price fluctuations based on certain coal sales price indices and anticipated payments in lieu of shipments. We have constrained the expected value of variable consideration in our estimation of transaction price and only included this consideration to the extent that it is probable that a significant revenue reversal will not occur. The estimated transaction price for each contract is allocated to our performance obligations based on relative standalone selling prices determined at contract inception. Variable consideration is allocated to a specific part of the contract in many instances, such as if the variable consideration is based on production activities for coal delivered during a certain period or the outcome of a customer's ability to accept coal shipments over a certain period. Contract assets are recorded as trade receivables and reported separately in our consolidated balance sheet from other contract assets as title passes to the customer and our right to consideration becomes unconditional. Payments for coal shipments are typically due within two to four weeks of performance. We typically do not have material contract assets that are stated separately from trade receivables as our performance obligations are satisfied as control of the goods or services passes to the customer thereby granting us an unconditional right to receive consideration. Contract liabilities relate to consideration received in advance of the satisfaction of our performance obligations. Contract liabilities are recognized as revenue at the point in time when control of the good or service passes to the customer.

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2018
INVENTORIES
Schedule of inventories	March 31, December 31, 2018 2017 (in thousands) Coal $ 46,784 $ 22,825 Supplies (net of reserve for obsolescence of $5,254 and $5,149, respectively) 37,160 37,450 Total inventories, net $ 83,944 $ 60,275

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2018
FAIR VALUE MEASUREMENTS
Summary of fair value measurements within the hierarchy	March 31, 2018 December 31, 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Measured on a recurring basis: Contingent consideration $ — $ — $ 6,800 $ — $ — $ 6,800 Additional disclosures: Long-term debt — 480,280 — — 541,147 — Total $ — $ 480,280 $ 6,800 $ — $ 541,147 $ 6,800

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2018
LONG-TERM DEBT
Schedule of long-term debt	Unamortized Discount and Principal Debt Issuance Costs March 31, December 31, March 31, December 31, 2018 2017 2018 2017 (in thousands) Revolving Credit facility $ — $ 30,000 $ (6,818) $ (7,356) Senior notes 400,000 400,000 (6,479) (6,707) Securitization facility 40,000 72,400 — — 440,000 502,400 (13,297) (14,063) Less current maturities (40,000) (72,400) — — Total long-term debt $ 400,000 $ 430,000 $ (13,297) $ (14,063)

VARIABLE INTEREST ENTITIES (Tab

VARIABLE INTEREST ENTITIES (Tables)	3 Months Ended
	Mar. 31, 2018
VARIABLE INTEREST ENTITIES
Schedule of distributions	Three Months Ended March 31, 2018 2017 (in thousands) Alliance Minerals $ 3,888 $ 4,563 Bluegrass Minerals 162 190

INVESTMENTS (Tables)

INVESTMENTS (Tables)	3 Months Ended
	Mar. 31, 2018
INVESTMENTS
Schedule of changes in equity method investment	Three Months Ended March 31, 2018 2017 (in thousands) Beginning balance $ 147,964 $ 138,817 Contributions 11,400 9,287 Equity method investment income 3,736 3,700 Distributions received (4,431) (4,752) Ending balance $ 158,669 $ 147,052
Schedule of changes in equity securities without readily determinable fair value	Three Months Ended March 31, 2018 (in thousands) Beginning balance $ 106,398 Payment-in-kind distributions received 3,724 Ending balance $ 110,122

REVENUE FROM CONTRACTS WITH C29

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2018
REVENUE FROM CONTRACTS WITH CUSTOMERS
Schedule of disaggregation of revenues by type	Illinois Other and Basin Appalachia Corporate Elimination Consolidated (in thousands) Three Months Ended March 31, 2018 Coal sales $ 276,065 $ 145,289 $ 7,711 $ (5,455) $ Transportation revenues 18,271 1,514 — — Other sales and operating revenues 569 829 16,619 (4,290) Total revenues $ 294,905 $ 147,632 $ 24,330 $ (9,745) $ 457,122 Three Months Ended March 31, 2017 Coal sales $ 266,928 $ 167,773 $ 15,248 $ (11,205) $ Transportation revenues 7,855 1,741 — — Other sales and operating revenues 772 730 15,351 (4,113) Total revenues $ 275,555 $ 170,244 $ 30,599 $ (15,318) $ 461,080
Schedule of current coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied	2021 and 2018 2019 2020 Thereafter Total (in thousands) Illinois Basin coal revenues $ 740,763 $ 312,605 $ 238,386 $ 51,790 $ Appalachia coal revenues 470,006 284,994 157,843 38,224 Other and Corporate coal revenues 61,346 22,666 — — Elimination (47,028) (17,035) — — Total coal revenues (1) $ 1,225,087 $ 603,230 $ 396,229 $ 90,014 $ 2,314,560 (1) Coal revenues consists of coal sales and transportation revenues.

NET INCOME OF ARLP PER LIMITE30

NET INCOME OF ARLP PER LIMITED PARTNER UNIT (Tables)	3 Months Ended
	Mar. 31, 2018
NET INCOME OF ARLP PER LIMITED PARTNER UNIT
Reconciliation of net income and EPU calculations	Three Months Ended March 31, 2018 2017 (in thousands, except per unit data) Net income of ARLP $ 155,908 $ 104,902 Adjustments: MGP's priority distributions (1) — (19,216) General partners' equity ownership (1) (1,560) (1,730) General partners' special allocation of certain general and administrative expenses (2) — 800 Limited partners' interest in net income of ARLP 154,348 84,756 Less: Distributions to participating securities (1,271) (966) Undistributed earnings attributable to participating securities (1,548) (1,465) Net income of ARLP available to limited partners $ 151,529 $ 82,325 Weighted-average limited partner units outstanding – basic and diluted 130,819 74,503 Basic and diluted net income of ARLP per limited partner unit (3) $ 1.16 $ 1.10 (1) Amounts for the three months ended March 31, 2018 reflect the impact of the Exchange Transaction eliminating 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 first quarter of 2018, all of the first quarter earnings less the Intermediate Partnership's general partner interest were allocated to ARLP's limited partners. The Exchange Transaction also converted SGP's nominal general partnership interest to the limited partner interest. (2) During the three months ended March 31, 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. 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 1,532 and 1,427 for the three months ended March 31, 2018 and 2017, 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 March 31, 2018 2017 (in thousands, except per unit data) Net income of ARLP $ 155,908 $ 104,902 Adjustments: General partner's equity ownership (1,560) (1,050) General partner's special allocation of certain general and administrative expenses (1) — 800 Limited partners' interest in net income of ARLP 154,348 104,652 Less: Distributions to participating securities (1,271) (966) Undistributed earnings attributable to participating securities (1,548) (769) Net income of ARLP available to limited partners (2) $ 151,529 $ 102,917 Weighted-average limited partner units outstanding – basic and diluted (2) 130,819 130,610 Pro forma basic and diluted net income of ARLP per limited partner unit (3) $ 1.16 $ 0.79 (1) During the three months ended March 31, 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 subsequent to the Exchange Transaction. Accordingly, the Adjustment - General partner's 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 1,532 and 1,427 for the three months ended March 31, 2018 and 2017, respectively, were considered anti-dilutive under the treasury stock method.

WORKERS' COMPENSATION AND PNE31

WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables)	3 Months Ended
	Mar. 31, 2018
Accrued Workers Compensation And Pneumoconiosis Benefits
Reconciliation of changes in workers' compensation liability	Three Months Ended March 31, 2018 2017 (in thousands) Beginning balance $ 54,439 $ 48,131 Accruals increase 2,641 1,974 Payments (2,797) (2,925) Interest accretion 363 420 Ending balance $ 54,646 $ 47,600
Pneumoconiosis benefits
Accrued Workers Compensation And Pneumoconiosis Benefits
Components of net periodic benefit cost	Three Months Ended March 31, 2018 2017 (in thousands) Service cost $ 630 $ 546 Interest cost (1) 635 629 Net amortization (1) 1 (567) Net periodic benefit cost $ 1,266 $ 608 (1) Interest cost and net amortization is included in the Other income (expense) line item within our condensed consolidated statements of income (see Note 2. New Accounting Standards). .

COMPENSATION PLANS (Tables)

COMPENSATION PLANS (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2018 1,694,026 $ $ 33,372 Granted Vested (1) Forfeited Non-vested grants at March 31, 2018 33,494 (1) During the three months ended March 31, 2018, we issued 191,858 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, 2018 561,784 $ $ 11,067 Granted 18,676 Issued (1) (10,364) Phantom units outstanding as of March 31, 2018 570,096 10,062

COMPONENTS OF PENSION PLAN NE33

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Tables)	3 Months Ended
	Mar. 31, 2018
Defined benefit pension plan
Employee Benefit Plans
Components of net periodic benefit cost	Three Months Ended March 31, 2018 2017 (in thousands) Interest cost $ 1,116 $ 1,135 Expected return on plan assets (1,436) (1,252) Amortization of prior service cost 47 47 Amortization of net loss 969 773 Net periodic benefit cost (1) $ 696 $ 703 (1) Net periodic benefit cost for the Pension Plan is included in the Other income (expense) line item within our condensed consolidated statements of income (see Note 2. New Accounting Standards).

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2018
SEGMENT INFORMATION
Schedule of reportable segment results	Illinois Other and Elimination Basin Appalachia Corporate (1) Consolidated (in thousands) Three Months Ended March 31, 2018 Revenues - Outside $ 289,518 $ 147,565 $ 20,039 $ — $ Revenues - Intercompany 5,387 67 4,291 — Total revenues (2) 294,905 147,632 24,330 (9,745) 457,122 Segment Adjusted EBITDA Expense (3) 181,803 92,498 12,798 Segment Adjusted EBITDA (4) 94,830 53,621 18,992 Total assets 1,425,798 463,857 522,307 Capital expenditures 37,448 13,376 701 — Three Months Ended March 31, 2017 Revenues - Outside $ 264,350 $ 170,244 $ 26,486 $ — $ Revenues - Intercompany 11,205 — 4,113 — Total revenues (2) 275,555 170,244 30,599 (15,318) 461,080 Segment Adjusted EBITDA Expense (3) 161,437 95,317 17,838 Segment Adjusted EBITDA (4) 106,263 73,187 16,461 Total assets 1,426,551 479,375 416,379 Capital expenditures 17,189 12,780 377 — (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. The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to Operating expenses (excluding depreciation, depletion and amortization) : Three Months Ended March 31, 2018 2017 (in thousands) Segment Adjusted EBITDA Expense $ 279,459 $ 261,494 Outside coal purchases (1,374) — Other (expense) income (847) 533 Operating expenses (excluding depreciation, depletion and amortization) $ 277,238 $ 262,027 (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 settlement gain. 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. Consolidated Segment Adjusted EBITDA is reconciled to net income as follows: Three Months Ended March 31, 2018 2017 (in thousands) Consolidated Segment Adjusted EBITDA $ 165,338 $ 193,690 General and administrative (16,651) (16,033) Depreciation, depletion and amortization (61,848) (65,127) Settlement gain 80,000 — Interest expense, net (10,793) (7,492) Income tax benefit 10 12 Net income $ 156,056 $ 105,050
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)	Three Months Ended March 31, 2018 2017 (in thousands) Segment Adjusted EBITDA Expense $ 279,459 $ 261,494 Outside coal purchases (1,374) — Other (expense) income (847) 533 Operating expenses (excluding depreciation, depletion and amortization) $ 277,238 $ 262,027
Reconciliation of consolidated Segment Adjusted EBITDA to net income	Three Months Ended March 31, 2018 2017 (in thousands) Consolidated Segment Adjusted EBITDA $ 165,338 $ 193,690 General and administrative (16,651) (16,033) Depreciation, depletion and amortization (61,848) (65,127) Settlement gain 80,000 — Interest expense, net (10,793) (7,492) Income tax benefit 10 12 Net income $ 156,056 $ 105,050

ORGANIZATION AND PRESENTATION -

ORGANIZATION AND PRESENTATION - Organization (Details) - shares	3 Months Ended	7 Months Ended
	Mar. 31, 2018	Jul. 27, 2017	Dec. 31, 2017
Ownership interests
Common units outstanding	130,903,256		130,704,217
SGP | AHGP
Ownership interests
Number of common units owned	20,641,168
AHGP
Ownership interests
Common units outstanding	59,863,000
ARLP | SGP
Ownership interests
Ownership percentage by general partners		0.01%
ARLP | MGP
Ownership interests
Ownership percentage by general partners	0.99%
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
Minimum
Ownership interests
Coal shipments, payment period	14 days
Maximum
Ownership interests
Coal shipments, payment period	28 days

ORGANIZATION AND PRESENTATION36

ORGANIZATION AND PRESENTATION - Exchange Transaction (Details) - shares	Jul. 28, 2017	Mar. 31, 2018	Jul. 27, 2017
ARLP | SGP
Ownership interests
Number of common units owned		7,181
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
ARLP | MGP
Ownership interests
Ownership percentage by general partners		0.99%
ARLP | SGP
Ownership interests
Ownership percentage by general partners			0.01%
ARLP | Exchange Transaction | MGP
Ownership interests
Ownership percentage by general partners	0.99%
ARLP | Exchange Transaction | SGP
Ownership interests
Ownership percentage by general partners	0.01%
Intermediate Partnership | MGP
Ownership interests
Ownership percentage by general partners		1.0001%
Intermediate Partnership | Exchange Transaction | SGP
Ownership interests
Ownership percentage by general partners	0.01%

CONTINGENCIES (Details)

CONTINGENCIES (Details) - USD ($) $ in Thousands	Mar. 09, 2018	Mar. 31, 2018
Settlement of Litigation
Net proceeds from settlement		$ 80,000
Breach of contract litigation
Settlement of Litigation
Settlement per agreement in principal	$ 93,000
Legal and other costs of settlement	13,000
Net proceeds from settlement	80,000
Commitments for external coal purchases | Breach of contract litigation
Settlement of Litigation
Purchase of coal reserves, agreed amount	$ 2,000

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
INVENTORIES
Coal	$ 46,784	$ 22,825
Supplies (net of reserve for obsolescence of $5,149 and $4,940, respectively)	37,160	37,450
Total inventories, net	83,944	60,275
Reserve for obsolescence	$ 5,254	$ 5,149

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Estimated fair value - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Significant Observable Inputs (Level 2)
FAIR VALUE MEASUREMENTS
Long-term debt	$ 480,280	$ 541,147
Total	480,280	541,147
Significant Unobservable Inputs (Level 3)
FAIR VALUE MEASUREMENTS
Total	6,800	6,800
Recurring | Significant Unobservable Inputs (Level 3)
FAIR VALUE MEASUREMENTS
Contingent consideration	$ 6,800	$ 6,800

LONG-TERM DEBT - Components (De

LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Principal
Aggregate maturities of long-term debt	$ 440,000	$ 502,400
Less current maturities	(40,000)	(72,400)
Total long-term debt	400,000	430,000
Unamortized Discount and Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(13,297)	(14,063)
Total unamortized debt issuance costs	(13,297)	(14,063)
Senior notes due 2025
Principal
Aggregate maturities of long-term debt	400,000	400,000
Unamortized Discount and Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(6,479)	(6,707)
Securitization Facility
Principal
Aggregate maturities of long-term debt	40,000	72,400
Credit Agreement | Revolving credit facility
Unamortized Discount and Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	$ (6,818)
Replaced Credit Agreement | Replaced Credit facility
Principal
Aggregate maturities of long-term debt		30,000
Unamortized Discount and Debt Issuance Costs
Unamortized debt issuance costs including current and non-current		$ (7,356)

LONG-TERM DEBT - ARLP Debt Arra

LONG-TERM DEBT - ARLP Debt Arrangements (Details)	Jan. 27, 2017USD ($)item	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)	May 23, 2017USD ($)	Apr. 03, 2017USD ($)
Long-Term Debt
Outstanding		$ 440,000,000		$ 440,000,000	$ 502,400,000
Debt issuance costs incurred			$ 6,664,000
ARLP Debt Arrangements
Long-Term Debt
ARLP debt arrangements requirements, period over which the ratios are required to be maintained				12 months
Actual debt to cash flow ratio for trailing twelve months				0.75
Actual cash flow to interest expense ratio for trailing twelve months				16
Credit Agreement | Revolving credit facility
Long-Term Debt
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)		4.07%		4.07%
Credit Agreement | Revolving credit facility | Reduced Commitment as of May 23. 2017
Long-Term Debt
Maximum borrowing capacity						$ 494,750,000
Credit Agreement | Revolving credit facility | Extended Commitment to May 23, 2021
Long-Term Debt
Maximum borrowing capacity							$ 461,250,000
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
Amendment | Revolving credit facility
Long-Term Debt
Maximum borrowing capacity							$ 494,750,000
Replaced Credit Agreement | Replaced Credit facility
Long-Term Debt
Outstanding					$ 30,000,000
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, debt to cash flow ratio	2.5
Intermediate Partnership | ARLP Debt Arrangements | Minimum
Long-Term Debt
ARLP debt arrangements requirements, cash flow to interest expense ratio	3

LONG-TERM DEBT - 2025 Senior No

LONG-TERM DEBT - 2025 Senior Notes (Details) - USD ($)	Apr. 24, 2017	Mar. 31, 2017
Issuance of Senior Notes
Discount and debt issuance costs incurred		$ 6,664,000
Intermediate Partnership and Alliance Finance | Senior notes due 2025 | 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 ($)	Mar. 31, 2018	Dec. 31, 2017	Dec. 05, 2014
Long-Term Debt
Outstanding	$ 440,000,000	$ 502,400,000
Securitization Facility
Long-Term Debt
Maximum borrowing capacity			$ 100,000,000
Outstanding	$ 40,000,000	$ 72,400,000

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%
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 Millions	Mar. 31, 2018	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 | Cavalier Minerals | All Dale I
Variable Interest Entities
Funding commitment			$ 49
Funding Commitments | Cavalier Minerals | All Dale II
Variable Interest Entities
Funding commitment		$ 100
Initial Funding Commitment | Bluegrass Minerals | Cavalier Minerals
Variable Interest Entities
Funding commitment			2
Additional Funding Commitment | Bluegrass Minerals | Cavalier Minerals
Variable Interest Entities
Funding commitment		4
Variable Interest Entity, Primary Beneficiary | Initial Funding Commitment | Alliance Minerals | Cavalier Minerals
Variable Interest Entities
Funding commitment			$ 48
Variable Interest Entity, Primary Beneficiary | Additional Funding Commitment | Alliance Minerals | Cavalier Minerals
Variable Interest Entities
Funding commitment		$ 96

VARIABLE INTEREST ENTITIES - 46

VARIABLE INTEREST ENTITIES - Cavalier Minerals Commitments (Details) - Cavalier Minerals - Funding Commitments $ in Millions	Mar. 31, 2018USD ($)
Alliance Minerals
Variable Interest Entities
Cumulative commitment fulfilled	$ 143.1
Bluegrass Minerals
Variable Interest Entities
Cumulative commitment fulfilled	$ 6

VARIABLE INTEREST ENTITIES - 47

VARIABLE INTEREST ENTITIES - Cavalier Minerals Distributions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Variable Interest Entities
Distributions paid to Partners	$ 68,396	$ 53,224
Cavalier Minerals | Alliance Minerals
Variable Interest Entities
Distributions paid to Partners	$ 3,888	4,563
Cavalier Minerals | Bluegrass Minerals
Variable Interest Entities
Incentive distribution for noncontrolling owners (as a percent)	25.00%
Distributions paid to Partners	$ 162	$ 190
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	3 Months Ended
	Mar. 31, 2018USD ($)	Nov. 17, 2014company
Variable Interest Entities
Percentage of available cash distributed	100.00%
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%
Variable Interest Entity, Primary Beneficiary | Intermediate Partnership
Variable Interest Entities
Ownership percentage by general partners	0.01%
Variable Interest Entity, Primary Beneficiary | Intermediate Partnership | Alliance Coal
Variable Interest Entities
Ownership interest in VIE (as a percent)	99.999%
Variable Interest Entity, Primary Beneficiary | ARLP | Intermediate Partnership
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
Coal lease | WKY CoalPlay | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entities
Payments for earned royalties	$ 10.8
Advance royalties	$ 40.7

INVESTMENTS - AllDale (Details)

INVESTMENTS - AllDale (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Feb. 28, 2017
Changes in equity method investment
Beginning balance	$ 147,964
Equity method investment income	3,736	$ 3,700
Ending balance	158,669
AllDale Partnerships
Changes in equity method investment
Beginning balance	147,964	138,817
Contributions	11,400	9,287
Equity method investment income	3,736	3,700
Distributions received	(4,431)	(4,752)
Ending balance	$ 158,669	$ 147,052
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
	Mar. 31, 2018	Jul. 19, 2017
Equity securities without readily determinable fair value
Equity securities	$ 106,398
Change in investment
Beginning balance	106,398
Payment-in-kind distributions received	3,724
Ending balance	$ 110,122
Kodiak | Series A-1 Preferred Interests | Alliance Minerals
Equity securities without readily determinable fair value
Equity securities		$ 100,000

REVENUE FROM CONTRACTS WITH C51

REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of revenues
Revenue	$ 457,122
Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		$ 461,080
Coal
Disaggregation of revenues
Revenue	423,610
Coal | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		438,744
Transportation revenues
Disaggregation of revenues
Revenue	19,785
Transportation revenues | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		9,596
Other sales and operating revenues
Disaggregation of revenues
Revenue	13,727
Other sales and operating revenues | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		12,740
Elimination
Disaggregation of revenues
Revenue	(9,745)
Elimination | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		(15,318)
Elimination | Coal
Disaggregation of revenues
Revenue	(5,455)
Elimination | Coal | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		(11,205)
Elimination | Other sales and operating revenues
Disaggregation of revenues
Revenue	(4,290)
Elimination | Other sales and operating revenues | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		(4,113)
Illinois Basin
Disaggregation of revenues
Revenue	289,518
Illinois Basin | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		264,350
Illinois Basin | Operating segments
Disaggregation of revenues
Revenue	294,905
Illinois Basin | Operating segments | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		275,555
Illinois Basin | Operating segments | Coal
Disaggregation of revenues
Revenue	276,065
Illinois Basin | Operating segments | Coal | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		266,928
Illinois Basin | Operating segments | Transportation revenues
Disaggregation of revenues
Revenue	18,271
Illinois Basin | Operating segments | Transportation revenues | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		7,855
Illinois Basin | Operating segments | Other sales and operating revenues
Disaggregation of revenues
Revenue	569
Illinois Basin | Operating segments | Other sales and operating revenues | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		772
Illinois Basin | Elimination
Disaggregation of revenues
Revenue	5,387
Illinois Basin | Elimination | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		11,205
Appalachia
Disaggregation of revenues
Revenue	147,565
Appalachia | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		170,244
Appalachia | Operating segments
Disaggregation of revenues
Revenue	147,632
Appalachia | Operating segments | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		170,244
Appalachia | Operating segments | Coal
Disaggregation of revenues
Revenue	145,289
Appalachia | Operating segments | Coal | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		167,773
Appalachia | Operating segments | Transportation revenues
Disaggregation of revenues
Revenue	1,514
Appalachia | Operating segments | Transportation revenues | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		1,741
Appalachia | Operating segments | Other sales and operating revenues
Disaggregation of revenues
Revenue	829
Appalachia | Operating segments | Other sales and operating revenues | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		730
Appalachia | Elimination
Disaggregation of revenues
Revenue	67
Other and Corporate
Disaggregation of revenues
Revenue	20,039
Other and Corporate | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		26,486
Other and Corporate | Operating segments
Disaggregation of revenues
Revenue	24,330
Other and Corporate | Operating segments | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		30,599
Other and Corporate | Operating segments | Coal
Disaggregation of revenues
Revenue	7,711
Other and Corporate | Operating segments | Coal | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		15,248
Other and Corporate | Operating segments | Other sales and operating revenues
Disaggregation of revenues
Revenue	16,619
Other and Corporate | Operating segments | Other sales and operating revenues | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		15,351
Other and Corporate | Elimination
Disaggregation of revenues
Revenue	$ 4,291
Other and Corporate | Elimination | Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of revenues
Revenue		$ 4,113

REVENUE FROM CONTRACTS WITH C52

REVENUE FROM CONTRACTS WITH CUSTOMERS - Coal supply contractst (Details) $ in Thousands	Mar. 31, 2018USD ($)
Performance obligations unsatisfied or partially unsatisfied
Total	$ 2,314,560
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	1,225,087
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	603,230
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	396,229
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	90,014
Operating segments | Illinois Basin
Performance obligations unsatisfied or partially unsatisfied
Total	1,343,544
Operating segments | Illinois Basin | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	740,763
Operating segments | Illinois Basin | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	312,605
Operating segments | Illinois Basin | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	238,386
Operating segments | Illinois Basin | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	51,790
Operating segments | Appalachia
Performance obligations unsatisfied or partially unsatisfied
Total	951,067
Operating segments | Appalachia | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	470,006
Operating segments | Appalachia | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	284,994
Operating segments | Appalachia | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	157,843
Operating segments | Appalachia | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	38,224
Operating segments | Other and Corporate
Performance obligations unsatisfied or partially unsatisfied
Total	84,012
Operating segments | Other and Corporate | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	61,346
Operating segments | Other and Corporate | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	22,666
Elimination
Performance obligations unsatisfied or partially unsatisfied
Total	(64,063)
Elimination | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	(47,028)
Elimination | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ (17,035)

NET INCOME OF ARLP PER LIMITE53

NET INCOME OF ARLP PER LIMITED PARTNER UNIT - Exchange Transaction (Details) - shares	Jul. 28, 2017	Mar. 31, 2018	Dec. 31, 2017
Ownership interests
ARLP common units outstanding		130,903,256	130,704,217
AHGP
Ownership interests
ARLP common units outstanding		59,863,000
AHGP | MGP
Ownership interests
Ownership percentage of managing general partner by parent		100.00%
MGP | ARLP
Ownership interests
Ownership percentage by general partners		0.99%
MGP | Intermediate Partnership
Ownership interests
Ownership percentage by general partners		1.0001%
MGP II | AHGP
Ownership interests
Units owned by parent	56,100,000
Ownership percentage of managing general partner by parent	100.00%
Exchange Transaction | MGP | ARLP
Ownership interests
Ownership percentage by general partners	0.99%
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

NET INCOME OF ARLP PER LIMITE54

NET INCOME OF ARLP PER LIMITED PARTNER UNIT - Incentive Distributions (Details) - MGP	3 Months Ended
	Mar. 31, 2018$ / 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 LIMITE55

NET INCOME OF ARLP PER LIMITED PARTNER UNIT - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				9 Months Ended
	Mar. 31, 2018	Sep. 30, 2017	Mar. 31, 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	$ 155,908		$ 104,902
Managing general partner priority distributions			(19,216)
General partner's equity ownership	(1,560)		(1,730)
General partner's special allocation of certain general and administrative expenses			800
LIMITED PARTNERS' INTEREST IN NET INCOME OF ARLP	154,348		84,756
Distributions to participating securities	(1,271)		(966)
Undistributed earnings attributable to participating securities	(1,548)		(1,465)
Net income of ARLP available to limited partners	$ 151,529		$ 82,325
Weighted average limited partner units outstanding - basic (in units)	130,819,217		74,503,298
Weighted average limited partner units outstanding - diluted (in units)	130,819,217		74,503,298
Basic net income of ARLP per limited partner unit (in dollars per unit)	$ 1.16		$ 1.10
Diluted net income of ARLP per limited partner unit (in dollars per unit)	$ 1.16		$ 1.10
Anti-dilutive under the treasury stock method (in units)	1,532,000		1,427,000
Pro Forma
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income of ARLP	$ 155,908		$ 104,902
General partner's equity ownership	(1,560)		(1,050)
General partner's special allocation of certain general and administrative expenses			800
LIMITED PARTNERS' INTEREST IN NET INCOME OF ARLP	154,348		104,652
Distributions to participating securities	(1,271)		(966)
Undistributed earnings attributable to participating securities	(1,548)		(769)
Net income of ARLP available to limited partners	$ 151,529		$ 102,917
Weighted average limited partner units outstanding - basic (in units)	130,819,000		130,610,000
Pro forma basic net income of ARLP per limited partner unit (3) (in dollars per share)	$ 1.16		$ 0.79
Pro forma diluted net income of ARLP per limited partner unit (3) (in dollars per share)	$ 1.16		$ 0.79
Anti-dilutive under the treasury stock method (in units)	1,532,000		1,427,000
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
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 PNE56

WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Workers' Compensation Liability (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Reconciliation of changes in the workers' compensation liability
Beginning balance	$ 54,439	$ 48,131
Accruals increase	2,641	1,974
Payments	(2,797)	(2,925)
Interest accretion	363	420
Ending balance	54,646	$ 47,600
Receivables for traumatic injury claims	$ 9,000

WORKERS' COMPENSATION AND PNE57

WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Periodic Benefit Cost (Details) - Pneumoconiosis benefits - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accrued Workers Compensation And Pneumoconiosis Benefits
Service cost	$ 630	$ 546
Interest cost	635	629
Amortization of net actuarial loss	1	(567)
Net periodic benefit cost	$ 1,266	$ 608

COMPENSATION PLANS - LTIP Grant

COMPENSATION PLANS - LTIP Grants Activity (Details) - ARLP LTIP - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Summary of non-vested grants (in units)
Balance at the beginning of the period (in units)	1,694,026
Granted (in units)	511,305
Vested (in units)	(290,706)
Forfeited (in units)	(16,930)
Balance at the end of the period (in units)	1,897,695
Weighted average grant date fair value per unit
Balance at the beginning of the period (in dollars per unit)	$ 19.62
Granted (in dollars per unit)	20.40
Vested (in dollars per unit)	37.18
Forfeited (in dollars per unit)	16.19
Balance at the end of the period (in dollars per unit)	$ 17.17
Intrinsic value (in dollars)
Intrinsic value of outstanding grants (in dollars)	$ 33,494	$ 33,372
Other information
Common units issued upon vesting	191,858

COMPENSATION PLANS - LTIP Other

COMPENSATION PLANS - LTIP Other Information (Details) - ARLP LTIP - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other information
Unit-based compensation expense	$ 2.7	$ 2.6
Total unit-based obligation recorded	13.6
Unrecognized compensation expense (in dollars)	$ 18.9
Weighted-average period for recognition of expense	1 year 6 months
Units for which vesting requirements were deemed satisfied	290,706
Forfeitures (in units)	16,930
Common units issued upon vesting	191,858
Units granted	511,305
Units available for grant	2,100,000

COMPENSATION PLANS - SERP and D

COMPENSATION PLANS - SERP and Directors Deferred Compensation Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
SERP and Deferred Compensation Plans
Other information
Unit-based compensation expense	$ 400	$ 300
Total unit-based obligation recorded	$ 16,100
SERP and Deferred Compensation Plans | Phantom Share Units (PSUs)
Summary of activity (in units)
Balance at the beginning of the period (in units)	561,784
Granted (in units)	18,676
Issued (in units)	(10,364)
Balance at the end of the period (in units)	570,096
Summary of activity (in dollars per unit)
Balance at the beginning of the period (in dollars per unit)	$ 28.64
Granted (in dollars per unit)	18.53
Issued (in dollars per unit)	27.92
Balance at the end of the period (in dollars per unit)	$ 28.32
Intrinsic value (in dollars)
Intrinsic value of outstanding grants (in dollars)	$ 10,062		$ 11,067
SERP | Phantom Share Units (PSUs)
Other information
Common units issued upon vesting	7,181

COMPENSATION PLANS - SERP and61

COMPENSATION PLANS - SERP and Directors Deferred Compensation Plans (Details) - SERP and Deferred Compensation Plans - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Compensation Plans
Common unit-based compensation expense	$ 0.4	$ 0.3
Total unit-based obligation recorded	$ 16.1

COMPONENTS OF PENSION PLAN NE62

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Details) - USD ($) $ in Thousands	Apr. 13, 2018	Mar. 31, 2018	Mar. 31, 2017
Defined benefit pension plan
Components of net periodic benefit cost:
Interest cost		$ 1,116	$ 1,135
Expected return on plan assets		(1,436)	(1,252)
Amortization of prior service cost (1)		47	47
Amortization of net loss (1)		969	773
Net periodic benefit cost		696	$ 703
2017 plan year
Components of net periodic benefit cost:
Employer contribution payments		700
2018 plan year
Components of net periodic benefit cost:
Employer contribution payments	$ 700	$ 1,500

SEGMENT INFORMATION - General (

SEGMENT INFORMATION - General (Details)	3 Months Ended
	Mar. 31, 2018segment
SEGMENT INFORMATION
Number of reportable segments	2

SEGMENT INFORMATION - Segment R

SEGMENT INFORMATION - Segment Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Reportable segment results
Revenues	$ 457,122
Total revenues	457,122	$ 461,080
Segment Adjusted EBITDA Expense	279,459	261,494
Segment Adjusted EBITDA	165,338	193,690
Total assets	2,243,414	2,204,316	$ 2,219,371
Capital expenditures	51,525	30,346
Additional information
Equity method investment income	3,736	3,700
Investments in affiliate	158,669		$ 147,964
Illinois Basin
Reportable segment results
Revenues	289,518
Appalachia
Reportable segment results
Revenues	147,565
Other and Corporate
Reportable segment results
Revenues	20,039
Operating segments | Illinois Basin
Reportable segment results
Revenues	294,905
Segment Adjusted EBITDA Expense	181,803	161,437
Segment Adjusted EBITDA	94,830	106,263
Total assets	1,425,798	1,426,551
Capital expenditures	37,448	17,189
Operating segments | Appalachia
Reportable segment results
Revenues	147,632
Segment Adjusted EBITDA Expense	92,498	95,317
Segment Adjusted EBITDA	53,621	73,187
Total assets	463,857	479,375
Capital expenditures	13,376	12,780
Operating segments | Other and Corporate
Reportable segment results
Revenues	24,330
Segment Adjusted EBITDA Expense	12,798	17,838
Segment Adjusted EBITDA	18,992	16,461
Total assets	522,307	416,379
Capital expenditures	701	377
Elimination
Reportable segment results
Revenues	(9,745)
Segment Adjusted EBITDA Expense	(7,640)	(13,098)
Segment Adjusted EBITDA	(2,105)	(2,221)
Total assets	(168,548)	(117,989)
Elimination | Illinois Basin
Reportable segment results
Revenues	5,387
Elimination | Appalachia
Reportable segment results
Revenues	67
Elimination | Other and Corporate
Reportable segment results
Revenues	$ 4,291
Calculated under Revenue Guidance in Effect before Topic 606
Reportable segment results
Revenues		461,080
Calculated under Revenue Guidance in Effect before Topic 606 | Illinois Basin
Reportable segment results
Revenues		264,350
Calculated under Revenue Guidance in Effect before Topic 606 | Appalachia
Reportable segment results
Revenues		170,244
Calculated under Revenue Guidance in Effect before Topic 606 | Other and Corporate
Reportable segment results
Revenues		26,486
Calculated under Revenue Guidance in Effect before Topic 606 | Operating segments | Illinois Basin
Reportable segment results
Revenues		275,555
Calculated under Revenue Guidance in Effect before Topic 606 | Operating segments | Appalachia
Reportable segment results
Revenues		170,244
Calculated under Revenue Guidance in Effect before Topic 606 | Operating segments | Other and Corporate
Reportable segment results
Revenues		30,599
Calculated under Revenue Guidance in Effect before Topic 606 | Elimination
Reportable segment results
Revenues		(15,318)
Calculated under Revenue Guidance in Effect before Topic 606 | Elimination | Illinois Basin
Reportable segment results
Revenues		11,205
Calculated under Revenue Guidance in Effect before Topic 606 | Elimination | Other and Corporate
Reportable segment results
Revenues		$ 4,113

SEGMENT INFORMATION - EBITDA Ex

SEGMENT INFORMATION - EBITDA Expense Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)
Segment Adjusted EBITDA Expense	$ 279,459	$ 261,494
Outside coal purchases	(1,374)
Other (expense) income	(847)	533
Operating expenses (excluding depreciation, depletion and amortization)	$ 277,238	$ 262,027

SEGMENT INFORMATION - EBITDA Re

SEGMENT INFORMATION - EBITDA Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Reconciliation of consolidated Segment Adjusted EBITDA to net income
Consolidated Segment Adjusted EBITDA	$ 165,338	$ 193,690
General and administrative	(16,651)	(16,033)
Depreciation, depletion and amortization	(61,848)	(65,127)
Settlement gain	80,000
Interest expense, net	(10,793)	(7,492)
Income tax benefit	10	12
NET INCOME	$ 156,056	$ 105,050

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent event $ / shares in Units, $ in Millions	Apr. 27, 2018USD ($)$ / shares
Subsequent Event
Distribution declared (in dollars per unit) | $ / shares	$ 0.515
Approximate distribution to be paid	$ 68.1
General Partners' Capital (Deficit)
Subsequent Event
Approximate distribution to be paid	$ 0.7

SUBSEQUENT EVENTS - Simplificat

SUBSEQUENT EVENTS - Simplification Transactions (Details)	Apr. 26, 2018	Feb. 22, 2018	Mar. 31, 2018
Intermediate Partnership | MGP
Simplification Transactions
Ownership percentage by general partners			1.0001%
Intermediate Partnership | MGP | Simplification Transactions
Simplification Transactions
Ownership percentage by general partners		1.0001%
Intermediate Partnership | AHGP | Subsequent event | Simplification Transactions
Simplification Transactions
Ownership percentage by general partners	1.0001%
Alliance Coal | MGP
Simplification Transactions
Ownership percentage by general partners			0.001%
Alliance Coal | MGP | Simplification Transactions
Simplification Transactions
Ownership percentage by general partners		0.001%
Alliance Coal | AHGP | Subsequent event | Simplification Transactions
Simplification Transactions
Ownership percentage by general partners	0.001%