Alliance Resource Partners (ARLP) 10-Q 6 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 06, 2019
Document and Entity Information
Entity Registrant Name	ALLIANCE RESOURCE PARTNERS LP
Entity Central Index Key	0001086600
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
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		128,391,191
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Small Business	false
Entity Emerging Growth Company	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 30,192	$ 244,150
Trade receivables	194,538	174,914
Other receivables	2,108	395
Due from affiliates	16	17
Inventories, net	85,440	59,206
Advance royalties, net	1,630	1,274
Prepaid expenses and other assets	15,811	20,730
Total current assets	329,735	500,686
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost	3,474,573	2,925,808
Less accumulated depreciation, depletion and amortization	(1,579,588)	(1,513,450)
Total property, plant and equipment, net	1,894,985	1,412,358
OTHER ASSETS:
Advance royalties, net	53,499	42,923
Equity method investments	28,770	161,309
Equity securities		122,094
Goodwill	136,399	136,399
Operating lease right-of-use assets	22,508
Other long-term assets	19,234	18,979
Total other assets	260,410	481,704
TOTAL ASSETS	2,485,130	2,394,748
CURRENT LIABILITIES:
Accounts payable	112,684	96,397
Due to affiliates	66	816
Accrued taxes other than income taxes	18,484	16,762
Accrued payroll and related expenses	38,896	43,113
Accrued interest	12,509	5,022
Workers' compensation and pneumoconiosis benefits	11,268	11,137
Current finance lease obligations	40,894	46,722
Current operating lease obligations	6,911
Other current liabilities	17,429	18,902
Current maturities, long-term debt, net	90,000	92,000
Total current liabilities	349,141	330,871
LONG-TERM LIABILITIES:
Long-term debt, excluding current maturities, net	414,771	564,004
Pneumoconiosis benefits	72,922	68,828
Accrued pension benefit	41,917	43,135
Workers' compensation	40,428	41,669
Asset retirement obligations	131,905	127,655
Long-term finance lease obligations	9,082	10,595
Long-term operating lease obligations	15,462
Other liabilities	21,393	20,304
Total long-term liabilities	747,880	876,190
Total liabilities	1,097,021	1,207,061
Alliance Resource Partners, L.P. ("ARLP") Partners' Capital:
Limited Partners - Common Unitholders 128,391,191 and 128,095,511 units outstanding, respectively	1,426,360	1,229,268
Accumulated other comprehensive loss	(50,455)	(46,871)
Total ARLP Partners' Capital	1,375,905	1,182,397
Noncontrolling interest	12,204	5,290
Total Partners' Capital	1,388,109	1,187,687
TOTAL LIABILITIES AND PARTNERS' CAPITAL	$ 2,485,130	$ 2,394,748

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Mar. 31, 2019	Dec. 31, 2018
CONDENSED CONSOLIDATED BALANCE SHEETS
Common units outstanding	128,391,191	128,095,511

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
SALES AND OPERATING REVENUES:
Revenues	$ 526,602	$ 457,122
EXPENSES:
Operating expenses (excluding depreciation, depletion and amortization)	302,728	277,238
Outside coal purchases		1,374
General and administrative	17,812	16,651
Depreciation, depletion and amortization	71,139	61,848
Settlement gain		(80,000)
Total operating expenses	421,917	296,896
INCOME FROM OPERATIONS	104,685	160,226
Interest expense (net of interest capitalized for the three months ended March 31, 2019 and 2018 of $254 and $265, respectively)	(11,422)	(10,858)
Interest income	91	65
Equity method investment income	324	3,736
Equity securities income	12,906	3,724
Acquisition gain	177,043
Other expense	(129)	(847)
INCOME BEFORE INCOME TAXES	283,498	156,046
INCOME TAX BENEFIT	(106)	(10)
NET INCOME	283,604	156,056
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	(7,176)	(148)
NET INCOME ATTRIBUTABLE TO ALLIANCE RESOURCE PARTNERS, L.P. ("NET INCOME OF ARLP")	276,428	155,908
GENERAL PARTNER'S INTEREST IN NET INCOME OF ARLP		1,560
LIMITED PARTNERS' INTEREST IN NET INCOME OF ARLP	$ 276,428	$ 154,348
BASIC AND DILUTED NET INCOME OF ARLP PER LIMITED PARTNER UNIT	$ 2.12	$ 1.16
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING – BASIC AND DILUTED	128,149,791	130,819,217
Coal sales
SALES AND OPERATING REVENUES:
Revenues	$ 476,016	$ 423,610
EXPENSES:
Operating expenses (excluding depreciation, depletion and amortization)	302,728	277,238
Royalties
SALES AND OPERATING REVENUES:
Revenues	10,728
Transportation revenues
SALES AND OPERATING REVENUES:
Revenues	30,238	19,785
EXPENSES:
Transportation expenses	30,238	19,785
Other sales and operating revenues
SALES AND OPERATING REVENUES:
Revenues	$ 9,620	$ 13,727

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Interest expense, interest capitalized	$ 254	$ 265

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
NET INCOME		$ 283,604	$ 156,056
OTHER COMPREHENSIVE INCOME (LOSS)
OTHER COMPREHENSIVE INCOME (LOSS)		(3,584)	1,017
COMPREHENSIVE INCOME		280,020	157,073
Less: Comprehensive income attributable to noncontrolling interest		(7,176)	(148)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ARLP		272,844	156,925
Defined benefit pension plan
OTHER COMPREHENSIVE INCOME (LOSS)
Amortization of prior service cost	[1]	47	47
Amortization of net actuarial loss (gain)	[1]	979	969
Total adjustments		1,026	1,016
Pneumoconiosis benefits
OTHER COMPREHENSIVE INCOME (LOSS)
Amortization of net actuarial loss (gain)	[1]	(1,145)	1
Net actuarial loss	[1]	(3,465)
Total adjustments		$ (4,610)	$ 1
[1]	Amortization of prior service cost and net actuarial gain or loss is included in the computation of net periodic benefit cost (see Notes 14 and 16 for additional details).

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
CASH FLOWS FROM OPERATING ACTIVITIES	$ 143,706	$ 224,178
Property, plant and equipment:
Capital expenditures	(84,043)	(51,525)
Increase (decrease) in accounts payable and accrued liabilities	6,470	(15)
Proceeds from sale of property, plant and equipment	103	7
Contributions to equity method investments		(11,400)
Distributions received from investments in excess of cumulative earnings	2,260	736
Payment for acquisition of business, net of cash acquired	(175,060)
Cash received from redemption of equity securities	134,288
Net cash used in investing activities	(115,982)	(62,197)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under securitization facility	108,000	37,600
Payments under securitization facility	(110,000)	(70,000)
Borrowings under revolving credit facilities		70,000
Payments under revolving credit facilities	(150,000)	(100,000)
Payments on finance lease obligations	(7,341)	(6,974)
Payments for purchases of units under unit repurchase program	(5,251)
Net settlement of withholding taxes on issuance of units in deferred compensation plans	(7,817)	(2,081)
Cash contributions by General Partners		41
Distributions paid to Partners	(69,011)	(68,396)	$ (275,902)
Other	(262)	(163)
Net cash used in financing activities	(241,682)	(139,973)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(213,958)	22,008
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	244,150	6,756	6,756
CASH AND CASH EQUIVALENTS AT END OF PERIOD	30,192	28,764	$ 244,150
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	3,240	2,995
NON-CASH INVESTING AND FINANCING ACTIVITY:
Accounts payable for purchase of property, plant and equipment	21,055	15,621
Assets acquired by finance lease		835
Right-of-use assets acquired by operating lease	25,179
Market value of common units issued under deferred compensation plans before tax withholding requirements	17,415	$ 6,142
Acquisition of business
Fair value of assets assumed	484,303
Previously held equity-method investments	(307,322)
Cash paid, net of cash acquired	(175,060)
Fair value of liabilities assumed	$ 1,921

ORGANIZATION AND PRESENTATION

ORGANIZATION AND PRESENTATION	3 Months Ended
	Mar. 31, 2019
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 general partner. · 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 coal mining operations of Alliance Resource Operating Partners, 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 and completed its initial public offering on August 19, 1999 when it acquired substantially all of the coal production and marketing assets of Alliance Resource Holdings, Inc., a Delaware corporation, and its subsidiaries. We are managed by our general partner, MGP, a Delaware limited liability company which holds a non-economic general partner interest in ARLP. AllDale I & II Acquisition On January 3, 2019 (the "Acquisition Date"), we acquired all of the limited partner interests not owned by Cavalier Minerals JV, LLC ("Cavalier Minerals") in AllDale Minerals LP ("AllDale I") and AllDale Minerals II, LP ("AllDale II", and collectively with AllDale I, "AllDale I & II") and the general partner interests in AllDale I & II (the "Acquisition"). As a result of the Acquisition and our previous investments held through Cavalier Minerals, we now control approximately 43,000 net royalty acres in premier oil & gas resource plays. The Acquisition provides us with diversified exposure to industry leading operators and is consistent with our general business strategy to pursue accretive acquisitions. See Note 3 – Acquisition for more information. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of March 31, 2019 and December 31, 2018 and the results of our operations, comprehensive income and cash flows for the three months ended March 31, 2019 and 2018. All intercompany transactions and accounts have been eliminated. 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, 2018 and particularly as it relates to the simplification transactions completed by the Partnership on May 31, 2018 ("Simplification Transactions"). For the periods presented prior to the Simplification Transactions, completed on May 31, 2018, MGP's previous interests in both Alliance Coal and the Intermediate Partnership are reported as part of the general partner's interest in the ARLP Partnership's condensed consolidated financial statements. These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these condensed consolidated 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, 2019. 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. Leases We lease buildings and equipment under operating lease agreements that provide for the payment of minimum rentals. We also have noncancelable lease agreements with third parties for land and equipment under finance lease obligations. Some of our arrangements within these agreements have both lease and non-lease components, which are generally accounted for separately. We have elected a practical expedient to account for lease and non-lease components as a single lease component for leases of buildings and office equipment. Our leases have lease terms of one year to 20 years, some of which include automatic renewals up to ten years which are likely to be exercised, and some of which include options to terminate the lease within one year. We also hold numerous mineral reserve leases with both related parties as well as third parties, none of which are accounted for as an operating lease or as a finance lease. We review each agreement to determine if an arrangement within the agreement contains a lease at the inception of an arrangement. Once an arrangement is determined to contain either an operating or finance lease with a term greater than 12 months, we recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term based on the present value of lease payments over the lease term. The lease term includes all noncancelable periods defined in the lease as well as periods covered by options to extend the lease that we are reasonably certain to exercise. As an implicit borrowing rate cannot be determined under most of our leases, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Expenses related to leases determined to be operating leases will be recognized on a straight-line basis over the lease term including any reasonably assured renewal periods, while those determined to be finance leases will be recognized following a front-loaded expense profile in which interest and amortization are presented separately in the income statement. The determination of whether a lease is accounted for as a finance lease or an operating lease requires management to make estimates primarily about the fair value of the asset and its estimated economic useful life.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	3 Months Ended
	Mar. 31, 2019
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS	2. New Accounting Standards Issued and Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet and disclose key information about lease arrangements. Leases are now classified as either finance or operating, with the resulting classification affecting the pattern of expense recognition in the income statement. We elected to use the modified retrospective transition method which allows a cumulative effect adjustment on the balance sheet upon adoption. The adoption of the standard resulted in the recognition of approximately $25.0 million in additional net lease assets and respective lease liabilities as of January 1, 2019. As part of our transition there are a number of practical expedients available in the new standard. We elected a package of practical expedients that, among other things, allows us to not reassess the lease classification of expired or existing leases. In addition to the package of practical expedients, we also elected to use a practical expedient allowing us to use hindsight in determining the lease term for existing leases. 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 do not have a history of credit losses on our financial instruments, accordingly we do not anticipate ASU 2016-13 will have a material impact on our condensed consolidated financial statements.

ACQUISITION

ACQUISITION	3 Months Ended
	Mar. 31, 2019
ACQUISITION
ACQUISITION	3. On the Acquisition Date, we acquired all of the limited partner interests not owned by Cavalier Minerals in AllDale I & II and the general partner interests in AllDale I & II for $176.0 million, which was funded with cash on hand and borrowings under the Revolving Credit Facility discussed in Note 8 – Long-Term Debt. As a result of the Acquisition and our previous investments held through Cavalier Minerals, we now control approximately 43,000 net royalty acres strategically positioned in the core of the Anadarko (SCOOP/STACK), Permian (Delaware and Midland), Williston (Bakken) and Appalachian basins. The Acquisition provides us with diversified exposure to industry leading operators and is consistent with our general business strategy to pursue accretive acquisitions. Because the underlying mineral interests held by AllDale I & II include royalty interests in producing properties, we have determined that the Acquisition should be accounted for as a business combination and the underlying assets and liabilities of AllDale I & II should be recorded at their Acquisition Date fair value on our condensed consolidated balance sheet. The total fair value of the cash paid in the Acquisition and our previous investments were as follows: As of January 3, 2019 (in thousands) Cash $ 175,960 Previously held investments 307,322 Total $ 483,282 Prior to the Acquisition Date, we accounted for our investments in AllDale I & II, held through Cavalier Minerals, as equity method investments. The combined fair value of our equity method investments on the Acquisition Date was $307.3 million. We re-measured our equity method investments, which had an aggregate carrying value of $130.3 million immediately prior to the Acquisition using an income approach primarily comprised of a discounted cash flow model. The re-measurement resulted in a gain of $177.0 million which is recorded in the Acquisition gain line item in our condensed consolidated statements of income. The assumptions used in the determination of the fair value measurement include estimated production, projected cash flows, forward oil & gas prices and a risk adjusted discount rate. Certain assumptions are not observable in active markets and therefore the re-measurement of our equity method investments represents a Level 3 fair value measurement. The following table summarizes the fair value allocation of assets acquired and liabilities assumed as of the Acquisition Date: As of January 3, 2019 (in thousands) Cash and cash equivalents $ 900 Mineral interests 473,701 Receivables 10,602 Accounts payable (1,921) Net assets acquired $ 483,282 We determined the fair value of the mineral interests using an income approach. The income approach primarily includes the development of an entity-wide value using discounted expected cash flows based on estimated production, projected cash flows, forward oil & gas prices and a risk adjusted discount rate. Certain assumptions used are not observable in active markets, therefore the fair value measurement of the mineral interests represents a Level 3 fair value measurement. AllDale I & II's carrying value of the receivables and accounts payable represent their fair value given their short-term nature. Our previous equity method investments in AllDale I & II were held through Cavalier Minerals. Bluegrass Minerals continues to hold a 4% membership interest (the "Bluegrass Interest") as well as a profits interest in Cavalier Minerals as it did before the Acquisition. This Bluegrass Interest represents an indirect noncontrolling interest in AllDale I & II. The Acquisition Date fair value of the Bluegrass Interest was $12.3 million. The fair value was determined using estimated production, projected cash flows, forward oil & gas prices and a risk adjusted discount rate. Certain assumptions used are not observable in active markets, therefore the fair value measurement represents a Level 3 fair value measurement. The amounts of revenue and earnings, exclusive of the acquisition gain, of AllDale I & II included in our condensed consolidated statements of income from the Acquisition Date through March 31, 2019 are as follows: (in thousands) Revenue $ 10,728 Net income 4,081 The following represents the pro forma revenues and net income for the three months ended March 31, 2018 as if AllDale I & II had been included in our consolidated results since January 1, 2018. These amounts have been calculated after applying our accounting policies. Pro forma information is not necessary for the three months ended March 31, 2019 as the Acquisition occurred at the beginning of the year. Additionally, our results have been adjusted to remove the effect of our past equity method investments in AllDale I & II. Three Months Ended March 31, 2018 (in thousands) Total revenues As reported $ 457,122 Pro forma 464,881 Net income As reported $ 156,056 Pro forma 155,583

CONTINGENCIES

CONTINGENCIES	3 Months Ended
	Mar. 31, 2019
CONTINGENCIES
CONTINGENCIES	4. 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, 2019
INVENTORIES
INVENTORIES	5. Inventories consist of the following: March 31, December 31, 2019 2018 (in thousands) Coal $ 47,265 $ 20,929 Supplies (net of reserve for obsolescence of $5,041 and $5,453, respectively) 38,175 38,277 Total inventories, net $ 85,440 $ 59,206

LEASES

LEASES	3 Months Ended
	Mar. 31, 2019
LEASES
LEASES	6. The components of lease expense were as follows: Three Months Ended March 31, 2019 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 4,521 Interest on lease liabilities 714 Operating lease cost 3,009 Short-term lease cost 190 Variable lease cost 332 Total lease cost $ 8,766 Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,966 Operating cash flows for finance leases $ 714 Financing cash flows for finance leases $ 7,341 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 25,179 Supplemental balance sheet information related to leases was as follows: March 31, December 31, 2019 2018 (in thousands) Finance leases: Property and equipment finance lease assets, gross $ 141,019 $ 141,019 Accumulated depreciation (79,097) (74,576) Property and equipment finance lease assets, net $ 61,922 $ 66,443 March 31, 2019 Weighted average remaining lease term Operating leases 11.1 years Finance leases 1 year Weighted average discount rate Operating leases 6.0 % Finance leases 5.2 % Maturities of lease liabilities as of March 31, 2019 were as follows: Operating leases Finance leases (in thousands) 2019 $ 6,120 $ 40,754 2020 3,788 8,748 2021 2,236 913 2022 2,172 913 2023 1,995 140 Thereafter 14,864 560 Total lease payments 31,175 52,028 Less imputed interest (8,802) (2,052) Total $ 22,373 $ 49,976

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2019
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	7. The following table summarizes our fair value measurements within the hierarchy: March 31, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Long-term debt $ — $ 541,274 $ — $ — $ 669,864 $ — Total $ — $ 541,274 $ — $ — $ 669,864 $ — 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 8 – 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.

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2019
LONG-TERM DEBT
LONG-TERM DEBT	8. Long-term debt consists of the following: Unamortized Discount and Principal Debt Issuance Costs March 31, December 31, March 31, December 31, 2019 2018 2019 2018 (in thousands) Revolving credit facility $ 25,000 $ 175,000 $ (4,665) $ (5,203) Senior notes 400,000 400,000 (5,564) (5,793) Securitization facility 90,000 92,000 — — 515,000 667,000 (10,229) (10,996) Less current maturities (90,000) (92,000) — — Total long-term debt $ 425,000 $ 575,000 $ (10,229) $ (10,996) Credit Facility. 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, 2021. 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 Revolving Credit Facility was 4.85% as of March 31, 2019. At March 31, 2019, we had $9.3 million of letters of credit outstanding with $460.5 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). 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 0.81 to 1.0 and 16.6 to 1.0, respectively, for the trailing twelve months ended March 31, 2019. We remain in compliance with the covenants of the Credit Agreement as of March 31, 2019. Senior Notes. 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. Accounts Receivable Securitization. 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 2019 and matures in January 2020. At March 31, 2019, we had $90.0 million outstanding balance under the Securitization Facility. Cavalier Credit Agreement. On October 6, 2015, Cavalier Minerals (see Note 9 – 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"). The commitment under the Cavalier Credit Facility is reduced by any distributions received from Cavalier Minerals' investment in AllDale II. As of March 31, 2019, the commitment under the Cavalier Credit Facility was $68.2 million. Mineral Lending is an entity owned by (a) Alliance Resource Holdings II, Inc. ("ARH II"), an entity owned by Joseph W. Craft III, the Chairman, President and Chief Executive Officer of MGP ("Mr. Craft") and Kathleen S. Craft, (b) an entity owned by an individual who is an officer and director of ARH II ("ARH Officer") and (c) charitable foundations established by Mr. Craft 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 I & II. 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, 2019, Cavalier Minerals had not drawn on the Cavalier Credit Facility.

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	3 Months Ended
	Mar. 31, 2019
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES	9. 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 & gas mineral interests through its ownership in AllDale I & II. Alliance Minerals' ownership interest in Cavalier Minerals is 96%. Bluegrass Minerals owns a 4% membership interest in Cavalier Minerals and a profits interest which entitles it to receive distributions equal to 25% of all distributions (including in liquidation) after all members have recovered their investment. Distributions with respect to Bluegrass Minerals' profits interest will be offset by all distributions received by Bluegrass Minerals from the former general partners of AllDale I & II. Bluegrass Minerals was Cavalier Minerals' managing member prior to the Acquisition (see Note 3 – Acquisition). In conjunction with the Acquisition, we became the managing member in Cavalier Minerals. Total contributions to and cumulative distributions from Cavalier Minerals are as follows: Alliance Bluegrass Minerals Minerals (in thousands) Contributions $ 143,112 $ 5,963 Distributions 57,385 2,391 We have concluded that Cavalier Minerals is a variable interest entity ("VIE") which we consolidate as the primary beneficiary because we are the managing member and a substantial equity owner in Cavalier Minerals. 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. AllDale I & II As a result of the Acquisition, we now own 100% of the general partner interests and, including the limited partner interests we hold indirectly through our ownership in Cavalier Minerals, approximately 97% of the limited partner interests in AllDale I & II. See Note 3 – Acquisition for more information on the Acquisition. As the general partner of AllDale I & II, we are entitled to receive 20.0% of all distributions from AllDale I & II with the remaining 80.0% allocated to limited partners based upon ownership percentages. Since AllDale I & II are structured as limited partnerships with the limited partners 1) not having the ability to remove the general partner and 2) not participating significantly in the operational decisions, we concluded that AllDale I & II are VIEs. We consolidate AllDale I & II as the primary beneficiary because we have the power to direct the activities that most significantly impact AllDale I & II's economic performance in addition to substantial equity ownership. The following table presents the carrying amounts and classification of AllDale I & II's assets and liabilities included in our condensed consolidated balance sheets: March 31, 2019 Assets (liabilities): (in thousands) Cash and cash equivalents $ 3,338 Trade receivables 7,474 Other receivables 1,415 Total property, plant and equipment, net 468,815 Other long-term assets 213 Accounts payable (1,357) Due to affiliates (45) AllDale III In February 2017, Alliance Minerals committed to directly invest $30.0 million in AllDale Minerals III, LP ("AllDale III") which was created for similar investment purposes as AllDale I & II. Alliance Minerals completed funding of this commitment in 2018. Alliance Minerals' limited partner interest in AllDale III at March 31, 2019 was 13.9%. The AllDale III Partnership Agreement includes a 25% profits interest for the general partner, subject to a return hurdle equal to the greater of 125% of cumulative capital contributions and a 10% internal rate of return, and following an 80/20 "catch-up" provision for the general partner. AllDale III distributed $0.5 million and $0.4 million to Alliance Minerals during the three months ended March 31, 2019 and 2018, respectively. Since AllDale III is structured as a limited partnership with the limited partners 1) not having the ability to remove the general partner and 2) not participating significantly in the operational decisions, we concluded that AllDale III is a VIE. We are not the primary beneficiary of AllDale III as we do not have the power to direct the activities that most significantly impact AllDale III's economic performance. We account for our ownership interest in the income or loss of AllDale III as an equity method investment. We record equity income or loss based on AllDale III's distribution structure. WKY CoalPlay On November 17, 2014, SGP Land, LLC ("SGP Land"), an indirect, wholly owned subsidiary of ARH II, and two limited liability companies ("Craft Companies") owned by irrevocable trusts established by Mr. Craft, 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 8 – Long-Term Debt, who is also a 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, 2019, we paid $10.8 million of advanced royalties to WKY CoalPlay. 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.

INVESTMENTS

INVESTMENTS	3 Months Ended
	Mar. 31, 2019
INVESTMENTS
INVESTMENTS	10. AllDale III As discussed in Note 9 – Variable Interest Entities, we account for our ownership interest in the income or loss of AllDale III as an equity method investment. We record equity income or loss based on AllDale III's distribution structure. The changes in our equity method investment in AllDale III for each of the periods presented were as follows: Three Months Ended March 31, 2019 2018 (in thousands) Beginning balance $ 28,974 $ 14,182 Contributions — 11,400 Equity method investment income 324 42 Distributions received (528) (375) Ending balance $ 28,770 $ 25,249 Kodiak On July 19, 2017, Alliance Minerals purchased $100 million of Series A-1 Preferred Interests from Kodiak Gas Services, LLC ("Kodiak"), a privately-held company providing large-scale, high-utilization gas compression assets to customers operating primarily in the Permian Basin. This structured investment provided us with a quarterly cash or payment-in-kind return. We accounted for our ownership interests in Kodiak as equity securities without readily determinable fair values. On February 8, 2019, Kodiak redeemed our preferred interest for $135.0 million in cash resulting in an $11.5 million gain due to an early redemption premium. The gain is included in the Equity securities income line item. We no longer hold any ownership interests in Kodiak.

PARTNERS' CAPITAL

PARTNERS' CAPITAL	3 Months Ended
	Mar. 31, 2019
PARTNERS' CAPITAL
PARTNERS' CAPITAL	11. Distributions Distributions paid or declared during 2018 and 2019 were as follows: Payment Date Per Unit Cash Distribution Total Cash Distribution (in thousands) February 14, 2018 $ $ 68,396 May 15, 2018 69,047 August 14, 2018 69,239 November 14, 2018 69,220 Total $ $ 275,902 February 14, 2019 $ $ 69,011 May 15, 2019 (1) — Total $ $ 69,011 (1) On April 26, 2019, we declared this quarterly distribution payable on May 15, 2019 to all unitholders of record as of May 8, 2019. Unit Repurchase Program In May 2018, the MGP board of directors approved the establishment of a unit repurchase program authorizing us to repurchase and retire up to $100 million of ARLP common units. The program has no time limit and we may repurchase units from time to time in the open market or in other privately negotiated transactions. The unit repurchase program authorization does not obligate us to repurchase any dollar amount or number of units. During the three months ended March 31, 2019, we repurchased and retired 300,970 units for $5.3 million. Since inception of the program, we have repurchased and retired 3,985,045 units at an average unit price of $19.03 for an aggregate purchase price of $75.9 million. Total units repurchased includes the repurchase and retirement of 35 units representing fractional units as part of the Simplification Transactions which are not part of the unit repurchase program. Change in Partners' Capital The following tables present the quarterly change in Partners' Capital for the three months ended March 31, 2019 and 2018: Accumulated Number of Limited Other Limited Partner Partners' Comprehensive Noncontrolling Total Partners’ Units Capital Loss Interest Capital (in thousands, except unit data) Balance at January 1, 2019 128,095,511 $ 1,229,268 $ (46,871) $ 5,290 $ 1,187,687 Comprehensive income: Net income — 276,428 — 7,176 283,604 Actuarially determined long-term liability adjustments — — (3,584) — (3,584) Total comprehensive income 280,020 Settlement of deferred compensation plans 596,650 (7,817) — — (7,817) Purchase of units under unit repurchase program (300,970) (5,251) — — (5,251) Common unit-based compensation — 2,743 — — 2,743 Distributions on deferred common unit-based compensation — (1,280) — — (1,280) Distributions from consolidated company to noncontrolling interest — — — (262) (262) Distributions to Partners — (67,731) — — (67,731) Balance at March 31, 2019 128,391,191 $ 1,426,360 $ (50,455) $ 12,204 $ 1,388,109 Accumulated Number of Limited General Other Limited Partner Partners' Partner's Comprehensive Noncontrolling Total Partners’ Units Capital Capital Income (Loss) Interest Capital (in thousands, except unit data) Balance at January 1, 2018 130,704,217 $ 1,183,219 $ 14,859 $ (51,940) $ 5,348 $ 1,151,486 Comprehensive income: Net income — 154,348 1,560 — 148 156,056 Actuarially determined long-term liability adjustments — — — 1,017 — 1,017 Total comprehensive income 157,073 Settlement of deferred compensation plans 199,039 (2,081) — — — (2,081) Simplification Transactions fees — (1) — — — (1) Common unit-based compensation — 3,006 — — — 3,006 Distributions on deferred common unit-based compensation — (1,062) — — — (1,062) General Partner contribution — — 41 — — 41 Distributions from consolidated company to noncontrolling interest — — — — (162) (162) Distributions to Partners — (66,660) (674) — — (67,334) Balance at March 31, 2018 130,903,256 $ 1,270,769 $ 15,786 $ (50,923) $ 5,334 $ 1,240,966

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	3 Months Ended
	Mar. 31, 2019
REVENUE FROM CONTRACTS WITH CUSTOMERS
REVENUE FROM CONTRACTS WITH CUSTOMERS	12. The following table illustrates the disaggregation of our revenues by type, including a reconciliation to our segment presentation as presented in Note 17 – Segment Information, for the three months ended March 31, 2019 and 2018. Illinois Other and Basin Appalachia Minerals Corporate Elimination Consolidated (in thousands) Three Months Ended March 31, 2019 Coal sales $ 317,270 $ 157,453 $ — $ 5,290 $ (3,997) $ Royalty revenues — — 10,728 — — Transportation revenues 29,238 1,000 — — — Other sales and operating revenues 541 951 — 12,405 (4,277) Total revenues $ 347,049 $ 159,404 $ 10,728 $ 17,695 $ (8,274) $ 526,602 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 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, 2019 and disaggregated by segment and contract duration. 2022 and 2019 2020 2021 Thereafter Total (in thousands) Illinois Basin coal revenues $ 813,839 $ 560,253 $ 239,355 $ — $ Appalachia coal revenues 491,491 256,782 41,545 14,687 Other and Corporate coal revenues 17,349 — — — Elimination (13,037) — — — Total coal revenues (1) $ 1,309,642 $ 817,035 $ 280,900 $ 14,687 $ 2,422,264 (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, 2019
NET INCOME OF ARLP PER LIMITED PARTNER UNIT
NET INCOME OF ARLP PER LIMITED PARTNER UNIT	13. We utilize the two-class method in calculating basic and diluted earnings per unit ("EPU"). Subsequent to the Simplification Transactions, net income of ARLP is only allocated to limited partners and participating securities under deferred compensation plans. Prior to the Simplification Transactions, net income of ARLP was allocated to MGP, limited partners and participating securities under deferred compensation plans in accordance with their respective ownership percentages of the ARLP Partnership, after giving effect to any special income or expense allocations. Our participating securities under deferred compensation plans include rights to nonforfeitable distributions or distribution equivalents. Our participating securities are 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 ("Directors' Deferred Compensation Plan"). As a result of the Simplification Transactions, MGP no longer holds economic interests in the Intermediate Partnership or Alliance Coal. We no longer make distributions or allocate income and losses to MGP 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, 2019 and 2018: Three Months Ended March 31, 2019 2018 (in thousands, except per unit data) Net income of ARLP $ 276,428 $ 155,908 Adjustments: General partner's equity ownership (1) — (1,560) Limited partners' interest in net income of ARLP 276,428 154,348 Less: Distributions to participating securities (1,105) (1,271) Undistributed earnings attributable to participating securities (3,522) (1,548) Net income of ARLP available to limited partners $ 271,801 $ 151,529 Weighted-average limited partner units outstanding – basic and diluted 128,150 130,819 Basic and diluted net income of ARLP per limited partner unit (2) $ 2.12 $ 1.16 (1) Amounts for the three months ended March 31, 2019 reflect the impact of the Simplification Transactions which ended net income allocations and quarterly cash distributions to MGP after May 31, 2018. Prior to the Simplification Transactions, MGP maintained a 1.0001% general partner interest in the Intermediate Partnership and a 0.001% managing member interest in Alliance Coal and thus received quarterly distributions and income and loss allocations during this time period. (2) 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 Directors' Deferred Compensation Plan units of 1,365 and 1,532 for the three months ended March 31, 2019 and 2018 respectively, were considered anti-dilutive under the treasury stock method.

WORKERS' COMPENSATION AND PNEUM

WORKERS' COMPENSATION AND PNEUMOCONIOSIS	3 Months Ended
	Mar. 31, 2019
WORKERS' COMPENSATION AND PNEUMOCONIOSIS
WORKERS' COMPENSATION AND PNEUMOCONIOSIS	14. 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, 2019 2018 (in thousands) Beginning balance $ 49,539 $ 54,439 Accruals increase 1,961 2,641 Payments (3,473) (2,797) Interest accretion 401 363 Ending balance $ 48,428 $ 54,646 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, 2019 are $8.1 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, 2019 2018 (in thousands) Service cost $ 645 $ 630 Interest cost (1) 760 635 Net amortization (1) (1,145) 1 Net periodic benefit cost $ 260 $ 1,266 (1) Interest cost and net amortization is included in the Other expense line item within our condensed consolidated statements of income.

COMPENSATION PLANS

COMPENSATION PLANS	3 Months Ended
	Mar. 31, 2019
COMPENSATION PLANS
COMPENSATION PLANS	15. Long-Term Incentive Plan We maintain 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 Chairman, 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 will 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, phantom units in lieu of cash 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, 2019 is as follows: Number of units Weighted average grant date fair value per unit Intrinsic value (in thousands) Non-vested grants at January 1, 2019 1,828,080 $ $ 31,699 Granted Vested (1) Non-vested grants at March 31, 2019 31,137 (1) During the three months ended March 31, 2019, we issued 596,650 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 $2.4 million and $2.7 million for the three months ended March 31, 2019 and 2018, respectively. The total obligation associated with the LTIP as of March 31, 2019 was $12.3 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets. As of March 31, 2019, there was $19.8 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 1.8 years. After consideration of the January 1, 2019 vesting and subsequent issuance of 596,650 common units, approximately 1.9 million units remain available under the LTIP for issuance in the future, assuming all grants issued in 2019, 2018 and 2017 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 Directors' Deferred Compensation Plan. Pursuant to the Directors' 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 Directors' Deferred Compensation Plan as "phantom" units. Distributions from the Directors' Deferred Compensation Plan will be settled in the form of ARLP common units. For both the SERP and Directors' 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 Directors' Deferred Compensation Plan vest immediately. A summary of SERP and Directors' Deferred Compensation Plan activity as of and for the three months ended March 31, 2019 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, 2019 635,837 $ $ 11,025 Granted 16,817 Issued (115,484) Phantom units outstanding as of March 31, 2019 537,170 10,937 Total SERP and Directors' Deferred Compensation Plan expense was $0.4 million for each of the three months ended March 31, 2019 and 2018. As of March 31, 2019, the total obligation associated with the SERP and Directors' Deferred Compensation Plan was $14.8 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets. During the three months ended March 31, 2019, we provided 115,484 ARLP common units to a director under the Directors' Deferred Compensation Plan.

COMPONENTS OF PENSION PLAN NET

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS	3 Months Ended
	Mar. 31, 2019
EMPLOYEE BENEFIT PLANS
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS	16. 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, 2019 2018 (in thousands) Interest cost $ 1,216 $ 1,116 Expected return on plan assets (1,232) (1,436) Amortization of prior service cost 47 47 Amortization of net loss 979 969 Net periodic benefit cost (1) $ 1,010 $ 696 (1) Net periodic benefit cost for the Pension Plan is included in the Other expense line item within our condensed consolidated statements of income. During the three months ended March 31, 2019, we made contribution payments of $1.2 million to the Pension Plan for the 2018 plan year. In April 2019, we made a contribution payment of $1.1 million for the 2019 plan year.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2019
SEGMENT INFORMATION
SEGMENT INFORMATION	17. We operate in the United States as a diversified natural resource company that generates income from the production and marketing of coal to major domestic and international utilities and industrial users as well as income from oil & gas mineral interests. We aggregate multiple operating segments into three reportable segments, Illinois Basin, Appalachia, and Minerals. We also have an "all other" category referred to as Other and Corporate. Our two coal reportable segments correspond to major coal producing regions in the eastern United States with similar economic characteristics including coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues. The two coal segments include eight mining complexes operating in Illinois, Indiana, Kentucky, Maryland and West Virginia. We also have a coal loading terminal in Indiana on the Ohio River included in Other and Corporate. The Minerals reportable segment aggregates our oil & gas mineral interests which are located primarily in the Anadarko (SCOOP/STACK), Permian (Delaware and Midland), Williston (Bakken) and Appalachian basins. We have no operations within our Minerals reportable segment other than receiving royalties for our oil & gas mineral interests. As a result of the Acquisition discussed in Note 3 – Acquisitions, we now control the underlying oil & gas mineral interests held by AllDale I & II. This control over the oil & gas mineral interests held by AllDale I & II reflects a strategic change in how we manage our business and how resources are allocated by our chief operating decision maker. Due to this strategic change, we have restructured our reportable segments in the first quarter of 2019 to include our oil & gas mineral interests within a new Minerals reportable segment. Prior periods have been recast to include our oil & gas minerals interests in the Minerals segment. The Illinois Basin reportable segment includes 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 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 had been idled since the fourth quarter of 2015 in response to market conditions but resumed production in May 2018. The Illinois Basin reportable segment also includes White County Coal, LLC's Pattiki mining complex, 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. The Appalachia reportable segment includes currently operating mining complexes (a) Mettiki mining complex, (b) Tunnel Ridge, LLC mining complex and (c) 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. The Appalachia reportable segment also includes the Penn Ridge property. The Minerals reportable segment includes AllDale I & II, Alliance Royalty, LLC, AllRoy GP, LLC, CavMM, LLC, and Alliance Minerals' equity interests in both AllDale III (Note 10 – Investments) and Cavalier Minerals. 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"), Alliance Minerals' equity investment in Kodiak which was redeemed in February 2019 by Kodiak (see Note 10 – Investments), 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, and AROP Funding and Alliance Finance (both discussed in Note 8 – Long-Term Debt). Reportable segment results as of and for the three months ended March 31, 2019 and 2018 are presented below. Illinois Other and Elimination Basin Appalachia Minerals Corporate (1) Consolidated (in thousands) Three Months Ended March 31, 2019 Revenues - Outside $ 343,052 159,404 10,728 13,418 — $ Revenues - Intercompany 3,997 — — 4,277 — Total revenues (2) 347,049 159,404 10,728 17,695 (8,274) 526,602 Segment Adjusted EBITDA Expense (3) 195,840 99,749 1,827 11,474 Segment Adjusted EBITDA (4) 121,971 58,655 9,132 19,127 Total assets 1,422,086 468,904 510,076 462,696 Capital expenditures (5) 47,928 33,346 — 2,769 — 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 3,588 15,256 Total assets 1,425,798 463,857 158,675 363,632 Capital expenditures 37,448 13,376 — 701 — (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, financing between segments 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. The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to Operating expenses (excluding depreciation, depletion and amortization) : Three Months Ended March 31, 2019 2018 (in thousands) Segment Adjusted EBITDA Expense $ 302,857 $ 279,459 Outside coal purchases — (1,374) Other expense (129) (847) Operating expenses (excluding depreciation, depletion and amortization) $ 302,728 $ 277,238 (4) Segment Adjusted EBITDA is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization, general and administrative expenses, settlement gain, debt extinguishment loss, asset impairments, and acquisition gains. 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, 2019 2018 (in thousands) Consolidated Segment Adjusted EBITDA $ 206,644 $ 165,190 General and administrative (17,812) (16,651) Depreciation, depletion and amortization (71,139) (61,848) Settlement gain — 80,000 Interest expense, net (11,331) (10,793) Acquisition gain 177,043 — Income tax benefit 106 10 Acquisition gain attributable to noncontrolling interest (7,083) — Net income attributable to ARLP $ 276,428 $ 155,908 Noncontrolling interest 7,176 148 Net income $ 283,604 $ 156,056 (5) Capital Expenditures shown exclude the Acquisition on January 3, 2019 (Note 3 – Acquisitions).

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2019
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	18. Other than those events described in Notes 11 and 16, there were no subsequent events.

ORGANIZATION AND PRESENTATION (

ORGANIZATION AND PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2019
ORGANIZATION AND PRESENTATION
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of March 31, 2019 and December 31, 2018 and the results of our operations, comprehensive income and cash flows for the three months ended March 31, 2019 and 2018. All intercompany transactions and accounts have been eliminated. 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, 2018 and particularly as it relates to the simplification transactions completed by the Partnership on May 31, 2018 ("Simplification Transactions"). For the periods presented prior to the Simplification Transactions, completed on May 31, 2018, MGP's previous interests in both Alliance Coal and the Intermediate Partnership are reported as part of the general partner's interest in the ARLP Partnership's condensed consolidated financial statements. These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these condensed consolidated 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, 2019.
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.
Leases	Leases We lease buildings and equipment under operating lease agreements that provide for the payment of minimum rentals. We also have noncancelable lease agreements with third parties for land and equipment under finance lease obligations. Some of our arrangements within these agreements have both lease and non-lease components, which are generally accounted for separately. We have elected a practical expedient to account for lease and non-lease components as a single lease component for leases of buildings and office equipment. Our leases have lease terms of one year to 20 years, some of which include automatic renewals up to ten years which are likely to be exercised, and some of which include options to terminate the lease within one year. We also hold numerous mineral reserve leases with both related parties as well as third parties, none of which are accounted for as an operating lease or as a finance lease. We review each agreement to determine if an arrangement within the agreement contains a lease at the inception of an arrangement. Once an arrangement is determined to contain either an operating or finance lease with a term greater than 12 months, we recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term based on the present value of lease payments over the lease term. The lease term includes all noncancelable periods defined in the lease as well as periods covered by options to extend the lease that we are reasonably certain to exercise. As an implicit borrowing rate cannot be determined under most of our leases, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Expenses related to leases determined to be operating leases will be recognized on a straight-line basis over the lease term including any reasonably assured renewal periods, while those determined to be finance leases will be recognized following a front-loaded expense profile in which interest and amortization are presented separately in the income statement. The determination of whether a lease is accounted for as a finance lease or an operating lease requires management to make estimates primarily about the fair value of the asset and its estimated economic useful life.
New Accounting Standards	New Accounting Standards Issued and Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet and disclose key information about lease arrangements. Leases are now classified as either finance or operating, with the resulting classification affecting the pattern of expense recognition in the income statement. We elected to use the modified retrospective transition method which allows a cumulative effect adjustment on the balance sheet upon adoption. The adoption of the standard resulted in the recognition of approximately $25.0 million in additional net lease assets and respective lease liabilities as of January 1, 2019. As part of our transition there are a number of practical expedients available in the new standard. We elected a package of practical expedients that, among other things, allows us to not reassess the lease classification of expired or existing leases. In addition to the package of practical expedients, we also elected to use a practical expedient allowing us to use hindsight in determining the lease term for existing leases. 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 do not have a history of credit losses on our financial instruments, accordingly we do not anticipate ASU 2016-13 will have a material impact on our condensed consolidated financial statements.

ACQUISITION (Tables)

ACQUISITION (Tables)	3 Months Ended
	Mar. 31, 2019
ACQUISITIONS
Schedule of total fair value of consideration transferred	As of January 3, 2019 (in thousands) Cash $ 175,960 Previously held investments 307,322 Total $ 483,282
Summary of fair value allocation of assets acquired and liabilities assumed	As of January 3, 2019 (in thousands) Cash and cash equivalents $ 900 Mineral interests 473,701 Receivables 10,602 Accounts payable (1,921) Net assets acquired $ 483,282
Schedule of revenue and earnings since acquisition date and pro forma condensed consolidated income statement	The amounts of revenue and earnings, exclusive of the acquisition gain, of AllDale I & II included in our condensed consolidated statements of income from the Acquisition Date through March 31, 2019 are as follows: (in thousands) Revenue $ 10,728 Net income 4,081 The following represents the pro forma revenues and net income for the three months ended March 31, 2018 as if AllDale I & II had been included in our consolidated results since January 1, 2018. These amounts have been calculated after applying our accounting policies. Pro forma information is not necessary for the three months ended March 31, 2019 as the Acquisition occurred at the beginning of the year. Additionally, our results have been adjusted to remove the effect of our past equity method investments in AllDale I & II. Three Months Ended March 31, 2018 (in thousands) Total revenues As reported $ 457,122 Pro forma 464,881 Net income As reported $ 156,056 Pro forma 155,583

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2019
INVENTORIES
Schedule of inventories	March 31, December 31, 2019 2018 (in thousands) Coal $ 47,265 $ 20,929 Supplies (net of reserve for obsolescence of $5,041 and $5,453, respectively) 38,175 38,277 Total inventories, net $ 85,440 $ 59,206

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2019
LEASES
Schedule of lease cost and other information	The components of lease expense were as follows: Three Months Ended March 31, 2019 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 4,521 Interest on lease liabilities 714 Operating lease cost 3,009 Short-term lease cost 190 Variable lease cost 332 Total lease cost $ 8,766 Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,966 Operating cash flows for finance leases $ 714 Financing cash flows for finance leases $ 7,341 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 25,179 Supplemental balance sheet information related to leases was as follows: March 31, December 31, 2019 2018 (in thousands) Finance leases: Property and equipment finance lease assets, gross $ 141,019 $ 141,019 Accumulated depreciation (79,097) (74,576) Property and equipment finance lease assets, net $ 61,922 $ 66,443 March 31, 2019 Weighted average remaining lease term Operating leases 11.1 years Finance leases 1 year Weighted average discount rate Operating leases 6.0 % Finance leases 5.2 %
Schedule of maturities of operating lease liabilities	Maturities of lease liabilities as of March 31, 2019 were as follows: Operating leases Finance leases (in thousands) 2019 $ 6,120 $ 40,754 2020 3,788 8,748 2021 2,236 913 2022 2,172 913 2023 1,995 140 Thereafter 14,864 560 Total lease payments 31,175 52,028 Less imputed interest (8,802) (2,052) Total $ 22,373 $ 49,976
Schedule of maturities of finance lease liabilities	Operating leases Finance leases (in thousands) 2019 $ 6,120 $ 40,754 2020 3,788 8,748 2021 2,236 913 2022 2,172 913 2023 1,995 140 Thereafter 14,864 560 Total lease payments 31,175 52,028 Less imputed interest (8,802) (2,052) Total $ 22,373 $ 49,976

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
FAIR VALUE MEASUREMENTS
Summary of fair value measurements within the hierarchy	March 31, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Long-term debt $ — $ 541,274 $ — $ — $ 669,864 $ — Total $ — $ 541,274 $ — $ — $ 669,864 $ —

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2019
LONG-TERM DEBT
Schedule of long-term debt	Unamortized Discount and Principal Debt Issuance Costs March 31, December 31, March 31, December 31, 2019 2018 2019 2018 (in thousands) Revolving credit facility $ 25,000 $ 175,000 $ (4,665) $ (5,203) Senior notes 400,000 400,000 (5,564) (5,793) Securitization facility 90,000 92,000 — — 515,000 667,000 (10,229) (10,996) Less current maturities (90,000) (92,000) — — Total long-term debt $ 425,000 $ 575,000 $ (10,229) $ (10,996)

VARIABLE INTEREST ENTITIES (Tab

VARIABLE INTEREST ENTITIES (Tables)	3 Months Ended
	Mar. 31, 2019
VARIABLE INTEREST ENTITIES
Schedule of distributions	Alliance Bluegrass Minerals Minerals (in thousands) Contributions $ 143,112 $ 5,963 Distributions 57,385 2,391
Schedule of assets and liabilities	March 31, 2019 Assets (liabilities): (in thousands) Cash and cash equivalents $ 3,338 Trade receivables 7,474 Other receivables 1,415 Total property, plant and equipment, net 468,815 Other long-term assets 213 Accounts payable (1,357) Due to affiliates (45)

INVESTMENTS (Tables)

INVESTMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
INVESTMENTS
Schedule of changes in equity method investment	Three Months Ended March 31, 2019 2018 (in thousands) Beginning balance $ 28,974 $ 14,182 Contributions — 11,400 Equity method investment income 324 42 Distributions received (528) (375) Ending balance $ 28,770 $ 25,249

PARTNERS' CAPITAL (Tables)

PARTNERS' CAPITAL (Tables)	3 Months Ended
	Mar. 31, 2019
PARTNERS' CAPITAL
Summary of quarterly per unit distribution paid	Payment Date Per Unit Cash Distribution Total Cash Distribution (in thousands) February 14, 2018 $ $ 68,396 May 15, 2018 69,047 August 14, 2018 69,239 November 14, 2018 69,220 Total $ $ 275,902 February 14, 2019 $ $ 69,011 May 15, 2019 (1) — Total $ $ 69,011 (1) On April 26, 2019, we declared this quarterly distribution payable on May 15, 2019 to all unitholders of record as of May 8, 2019.
Summary of changes to Partners' Capital	Accumulated Number of Limited Other Limited Partner Partners' Comprehensive Noncontrolling Total Partners’ Units Capital Loss Interest Capital (in thousands, except unit data) Balance at January 1, 2019 128,095,511 $ 1,229,268 $ (46,871) $ 5,290 $ 1,187,687 Comprehensive income: Net income — 276,428 — 7,176 283,604 Actuarially determined long-term liability adjustments — — (3,584) — (3,584) Total comprehensive income 280,020 Settlement of deferred compensation plans 596,650 (7,817) — — (7,817) Purchase of units under unit repurchase program (300,970) (5,251) — — (5,251) Common unit-based compensation — 2,743 — — 2,743 Distributions on deferred common unit-based compensation — (1,280) — — (1,280) Distributions from consolidated company to noncontrolling interest — — — (262) (262) Distributions to Partners — (67,731) — — (67,731) Balance at March 31, 2019 128,391,191 $ 1,426,360 $ (50,455) $ 12,204 $ 1,388,109 Accumulated Number of Limited General Other Limited Partner Partners' Partner's Comprehensive Noncontrolling Total Partners’ Units Capital Capital Income (Loss) Interest Capital (in thousands, except unit data) Balance at January 1, 2018 130,704,217 $ 1,183,219 $ 14,859 $ (51,940) $ 5,348 $ 1,151,486 Comprehensive income: Net income — 154,348 1,560 — 148 156,056 Actuarially determined long-term liability adjustments — — — 1,017 — 1,017 Total comprehensive income 157,073 Settlement of deferred compensation plans 199,039 (2,081) — — — (2,081) Simplification Transactions fees — (1) — — — (1) Common unit-based compensation — 3,006 — — — 3,006 Distributions on deferred common unit-based compensation — (1,062) — — — (1,062) General Partner contribution — — 41 — — 41 Distributions from consolidated company to noncontrolling interest — — — — (162) (162) Distributions to Partners — (66,660) (674) — — (67,334) Balance at March 31, 2018 130,903,256 $ 1,270,769 $ 15,786 $ (50,923) $ 5,334 $ 1,240,966

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2019
REVENUE FROM CONTRACTS WITH CUSTOMERS
Schedule of disaggregation of revenues by type	Illinois Other and Basin Appalachia Minerals Corporate Elimination Consolidated (in thousands) Three Months Ended March 31, 2019 Coal sales $ 317,270 $ 157,453 $ — $ 5,290 $ (3,997) $ Royalty revenues — — 10,728 — — Transportation revenues 29,238 1,000 — — — Other sales and operating revenues 541 951 — 12,405 (4,277) Total revenues $ 347,049 $ 159,404 $ 10,728 $ 17,695 $ (8,274) $ 526,602 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
Schedule of current coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied	2022 and 2019 2020 2021 Thereafter Total (in thousands) Illinois Basin coal revenues $ 813,839 $ 560,253 $ 239,355 $ — $ Appalachia coal revenues 491,491 256,782 41,545 14,687 Other and Corporate coal revenues 17,349 — — — Elimination (13,037) — — — Total coal revenues (1) $ 1,309,642 $ 817,035 $ 280,900 $ 14,687 $ 2,422,264 (1) Coal revenues consists of coal sales and transportation revenues.

NET INCOME OF ARLP PER LIMITE_2

NET INCOME OF ARLP PER LIMITED PARTNER UNIT (Tables)	3 Months Ended
	Mar. 31, 2019
NET INCOME OF ARLP PER LIMITED PARTNER UNIT
Reconciliation of net income and EPU calculations	Three Months Ended March 31, 2019 2018 (in thousands, except per unit data) Net income of ARLP $ 276,428 $ 155,908 Adjustments: General partner's equity ownership (1) — (1,560) Limited partners' interest in net income of ARLP 276,428 154,348 Less: Distributions to participating securities (1,105) (1,271) Undistributed earnings attributable to participating securities (3,522) (1,548) Net income of ARLP available to limited partners $ 271,801 $ 151,529 Weighted-average limited partner units outstanding – basic and diluted 128,150 130,819 Basic and diluted net income of ARLP per limited partner unit (2) $ 2.12 $ 1.16 (1) Amounts for the three months ended March 31, 2019 reflect the impact of the Simplification Transactions which ended net income allocations and quarterly cash distributions to MGP after May 31, 2018. Prior to the Simplification Transactions, MGP maintained a 1.0001% general partner interest in the Intermediate Partnership and a 0.001% managing member interest in Alliance Coal and thus received quarterly distributions and income and loss allocations during this time period. 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 Directors' Deferred Compensation Plan units of 1,365 and 1,532 for the three months ended March 31, 2019 and 2018 respectively, were considered anti-dilutive under the treasury stock method

WORKERS' COMPENSATION AND PNE_2

WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables)	3 Months Ended
	Mar. 31, 2019
Accrued Workers Compensation And Pneumoconiosis Benefits
Reconciliation of changes in workers' compensation liability	Three Months Ended March 31, 2019 2018 (in thousands) Beginning balance $ 49,539 $ 54,439 Accruals increase 1,961 2,641 Payments (3,473) (2,797) Interest accretion 401 363 Ending balance $ 48,428 $ 54,646
Pneumoconiosis benefits
Accrued Workers Compensation And Pneumoconiosis Benefits
Components of net periodic benefit cost	Three Months Ended March 31, 2019 2018 (in thousands) Service cost $ 645 $ 630 Interest cost (1) 760 635 Net amortization (1) (1,145) 1 Net periodic benefit cost $ 260 $ 1,266 Interest cost and net amortization is included in the Other expense line item within our condensed consolidated statements of income

COMPENSATION PLANS (Tables)

COMPENSATION PLANS (Tables)	3 Months Ended
	Mar. 31, 2019
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, 2019 1,828,080 $ $ 31,699 Granted Vested (1) Non-vested grants at March 31, 2019 31,137 (1) During the three months ended March 31, 2019, we issued 596,650 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 Directors' 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, 2019 635,837 $ $ 11,025 Granted 16,817 Issued (115,484) Phantom units outstanding as of March 31, 2019 537,170 10,937

COMPONENTS OF PENSION PLAN NE_2

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Tables)	3 Months Ended
	Mar. 31, 2019
Defined benefit pension plan
Employee Benefit Plans
Components of net periodic benefit cost	Three Months Ended March 31, 2019 2018 (in thousands) Interest cost $ 1,216 $ 1,116 Expected return on plan assets (1,232) (1,436) Amortization of prior service cost 47 47 Amortization of net loss 979 969 Net periodic benefit cost (1) $ 1,010 $ 696 (1) Net periodic benefit cost for the Pension Plan is included in the Other expense line item within our condensed consolidated statements of income.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2019
SEGMENT INFORMATION
Schedule of reportable segment results	Illinois Other and Elimination Basin Appalachia Minerals Corporate (1) Consolidated (in thousands) Three Months Ended March 31, 2019 Revenues - Outside $ 343,052 159,404 10,728 13,418 — $ Revenues - Intercompany 3,997 — — 4,277 — Total revenues (2) 347,049 159,404 10,728 17,695 (8,274) 526,602 Segment Adjusted EBITDA Expense (3) 195,840 99,749 1,827 11,474 Segment Adjusted EBITDA (4) 121,971 58,655 9,132 19,127 Total assets 1,422,086 468,904 510,076 462,696 Capital expenditures (5) 47,928 33,346 — 2,769 — 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 3,588 15,256 Total assets 1,425,798 463,857 158,675 363,632 Capital expenditures 37,448 13,376 — 701 — (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, financing between segments 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.
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)	Three Months Ended March 31, 2019 2018 (in thousands) Segment Adjusted EBITDA Expense $ 302,857 $ 279,459 Outside coal purchases — (1,374) Other expense (129) (847) Operating expenses (excluding depreciation, depletion and amortization) $ 302,728 $ 277,238
Reconciliation of consolidated Segment Adjusted EBITDA to net income	Three Months Ended March 31, 2019 2018 (in thousands) Consolidated Segment Adjusted EBITDA $ 206,644 $ 165,190 General and administrative (17,812) (16,651) Depreciation, depletion and amortization (71,139) (61,848) Settlement gain — 80,000 Interest expense, net (11,331) (10,793) Acquisition gain 177,043 — Income tax benefit 106 10 Acquisition gain attributable to noncontrolling interest (7,083) — Net income attributable to ARLP $ 276,428 $ 155,908 Noncontrolling interest 7,176 148 Net income $ 283,604 $ 156,056

ORGANIZATION AND PRESENTATION_2

ORGANIZATION AND PRESENTATION (Details) - a	Jan. 03, 2019	Mar. 31, 2019
AllDale I and II
Ownership interests
Ownership percentage by general partners		100.00%
Ownership percentage by limited partners		97.00%
AllDale I and II
Ownership interests
Royalty acres, net	43,000

ORGANIZATION AND PRESENTATION -

ORGANIZATION AND PRESENTATION - Leases (Details)	Mar. 31, 2019
Minimum
Lease term	1 year
Maximum
Lease term	20 years
Lease renewal term	10 years

NEW ACCOUNTING STANDARDS (Detai

NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 22,508
Operating lease liabilities	$ 22,373
Lease, Practical Expedients, Package [true false]	true
ASU 2016-02 | Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets		$ 25,000
Operating lease liabilities		$ 25,000

ACQUISITIONS - Consideration (D

ACQUISITIONS - Consideration (Details) $ in Thousands	Jan. 03, 2019USD ($)a	Mar. 31, 2019USD ($)	Jan. 02, 2019USD ($)	Dec. 31, 2018USD ($)
ACQUISITION
Previously held investment		$ 307,322
Equity method investments		28,770		$ 161,309
Acquisition gain		$ 177,043
AllDale I and II
ACQUISITION
Royalty acres, net | a	43,000
Cash	$ 175,960
Previously held investment	307,322
Total	483,282
Equity method investments			$ 130,300
Acquisition gain	$ 177,000

ACQUISITIONS - Assets and Liabi

ACQUISITIONS - Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 03, 2019
AllDale I and II
Assets acquired and liabilities assumed
Cash and cash equivalents		$ 900
Mineral interests		473,701
Receivables		10,602
Accounts payable		(1,921)
Net assets acquired		483,282
Noncontrolling interest fair value		$ 12,300
Bluegrass Minerals | Cavalier Minerals
Assets acquired and liabilities assumed
Noncontrolling ownership interest (as a percent)	4.00%	4.00%

ACQUISITIONS - Pro Forma (Detai

ACQUISITIONS - Pro Forma (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Pro forma condensed consolidated income statement
Total revenues, As reported	$ 526,602	$ 457,122
Total revenues, Pro forma		464,881
Net income	283,604	156,056
Net income, Pro forma		$ 155,583
AllDale I and II
Acquisitions, additional information
Revenue of acquired business	10,728
Net income of acquired business	$ 4,081

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
INVENTORIES
Coal	$ 47,265	$ 20,929
Supplies (net of reserve for obsolescence of $5,041 and $5,453, respectively)	38,175	38,277
Total inventories, net	85,440	59,206
Reserve for obsolescence	$ 5,041	$ 5,453

LEASES - Lease expense (Details

LEASES - Lease expense (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
LEASES
Amortization of right-of-use assets	$ 4,521
Interest on lease liabilities	714
Operating lease cost	3,009
Short-term lease cost	190
Variable lease cost	332
Total lease cost	$ 8,766

LEASES - Cash flow (Details)

LEASES - Cash flow (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
LEASES
Operating cash flows for operating leases	$ 2,966
Operating cash flows for finance leases	714
Financing cash flows for finance leases	7,341	$ 6,974
Operating leases	$ 25,179

LEASES _ Balance Sheet (Details

LEASES – Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost	$ 3,474,573	$ 2,925,808
Less accumulated depreciation, depletion and amortization	(1,579,588)	(1,513,450)
Total property, plant and equipment, net	1,894,985	1,412,358
Assets under finance lease
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost	141,019	141,019
Less accumulated depreciation, depletion and amortization	(79,097)	(74,576)
Total property, plant and equipment, net	$ 61,922	$ 66,443

LEASES _ Weighted Average (Deta

LEASES – Weighted Average (Details)	Mar. 31, 2019
LEASES
Weighted average remaining lease term of operating leases	11 years 1 month 6 days
Weighted average remaining lease term of finance leases	1 year
Weighted average discount rate of operating leases (as a percent)	6.00%
Weighted average discount rate of finance leases (as a percent)	5.20%

LEASES _ Maturities (Details)

LEASES – Maturities (Details) $ in Thousands	Mar. 31, 2019USD ($)
Operating leases
2019	$ 6,120
2020	3,788
2021	2,236
2022	2,172
2023	1,995
Thereafter	14,864
Total lease payments	31,175
Less imputed interest	(8,802)
Total	22,373
Finance leases
2019	40,754
2020	8,748
2021	913
2022	913
2023	140
Thereafter	560
Total lease payments	52,028
Less imputed interest	(2,052)
Total	$ 49,976

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Estimated fair value - Significant Observable Inputs (Level 2) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
FAIR VALUE MEASUREMENTS
Long-term debt	$ 541,274	$ 669,864
Total	$ 541,274	$ 669,864

LONG-TERM DEBT - Components (De

LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Principal
Aggregate maturities of long-term debt	$ 515,000	$ 667,000
Less current maturities	(90,000)	(92,000)
Total long-term debt	425,000	575,000
Unamortized Discount and Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(10,229)	(10,996)
Total unamortized debt issuance costs	(10,229)	(10,996)
Revolving credit facility
Principal
Aggregate maturities of long-term debt	25,000	175,000
Unamortized Discount and Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(4,665)	(5,203)
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	(5,564)	(5,793)
Securitization Facility
Principal
Aggregate maturities of long-term debt	$ 90,000	$ 92,000

LONG-TERM DEBT - Credit Agreeme

LONG-TERM DEBT - Credit Agreement (Details) $ in Thousands	Jan. 27, 2017USD ($)item	Mar. 31, 2019USD ($)
Credit Agreement
Long-Term Debt
Number of benchmarks | item	3
ARLP debt arrangements requirements, debt to cash flow ratio	2.5
ARLP debt arrangements requirements, cash flow to interest expense ratio	3
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		0.81
Actual cash flow to interest expense ratio for trailing twelve months		16.6
Credit Agreement | Eurodollar Rate
Long-Term Debt
Effective interest rate (as a percent)		4.85%
Revolving credit facility
Long-Term Debt
Maximum borrowing capacity	$ 494,750
Line of credit facility, available for borrowing		$ 460,500
Annual commitment fee percentage, undrawn portion		0.35%
Letters of credit subfacility
Long-Term Debt
Maximum borrowing capacity	125,000
Letters of credit outstanding		$ 9,300
Swingline subfacility
Long-Term Debt
Maximum borrowing capacity	$ 15,000

LONG-TERM DEBT - 2025 Senior No

LONG-TERM DEBT - 2025 Senior Notes (Details) - Senior notes due 2025 $ in Millions	Apr. 24, 2017USD ($)
Issuance of Senior Notes
Principal amount	$ 400
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) - Securitization Facility - USD ($) $ in Millions	Mar. 31, 2019	Dec. 05, 2014
Long-Term Debt
Maximum borrowing capacity		$ 100
Facility outstanding amount	$ 90

LONG-TERM DEBT - Cavalier (Deta

LONG-TERM DEBT - Cavalier (Details) - Cavalier Credit Agreement - USD ($) $ in Millions	Oct. 06, 2015	Mar. 31, 2019
Long-Term Debt
Credit facility amount	$ 100
Line of credit facility, available for borrowing		$ 68.2
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 (Details) - USD ($) $ in Thousands	Feb. 14, 2019	Nov. 14, 2018	Aug. 14, 2018	May 15, 2018	Feb. 14, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Jan. 03, 2019
Variable Interest Entities
Distributions paid to Partners	$ 69,011	$ 69,220	$ 69,239	$ 69,047	$ 68,396	$ 69,011	$ 68,396	$ 275,902
Cavalier Minerals | Alliance Minerals
Variable Interest Entities
Contributions						143,112
Distributions paid to Partners						$ 57,385
Cavalier Minerals | Bluegrass Minerals
Variable Interest Entities
Contributions							5,963
Distributions paid to Partners							$ 2,391
Cavalier Minerals | Bluegrass Minerals
Variable Interest Entities
Incentive distribution of available cash (as a percent)						25.00%
Cavalier Minerals | Bluegrass Minerals
Variable Interest Entities
Noncontrolling ownership interest (as a percent)						4.00%			4.00%
Cavalier Minerals | Alliance Minerals
Variable Interest Entities
Ownership interest in VIE (as a percent)						96.00%

VARIABLE INTEREST ENTITIES - Al

VARIABLE INTEREST ENTITIES - All Dale I and II (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Variable Interest Entities
Cash and cash equivalents	$ 30,192	$ 244,150
Trade receivables	194,538	174,914
Other receivables	2,108	395
Total property, plant and equipment, net	1,894,985	1,412,358
Other long-term assets	19,234	18,979
Accounts payable	(112,684)	(96,397)
Due to affiliates	(66)	$ (816)
AllDale I and II
Variable Interest Entities
Cash and cash equivalents	3,338
Trade receivables	7,474
Other receivables	1,415
Total property, plant and equipment, net	468,815
Other long-term assets	213
Accounts payable	(1,357)
Due to affiliates	$ (45)
AllDale I and II
Variable Interest Entities
Incentive distribution of available cash (as a percent)	20.00%
Remaining distribution (as a percent)	80.00%
AllDale I and II
Variable Interest Entities
Ownership percentage by general partners	100.00%
Ownership percentage by limited partners	97.00%

VARIABLE INTEREST ENTITIES - _2

VARIABLE INTEREST ENTITIES - All Dale III (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 28, 2017	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Equity Investments
Investments in affiliate		$ 28,770		$ 161,309
All Dale Minerals III
Equity Investments
Distribution after hurdles (as a percent)		25.00%
Specified internal rate of return (as a percent)		10.00%
Distribution of all available cash (as a percent)		125.00%
All Dale Minerals III
Equity Investments
Investments in affiliate		$ 28,770	$ 25,249	$ 28,974	$ 14,182
Distributions received		$ 528	$ 375
All Dale Minerals III | All Dale Minerals III
Equity Investments
Ownership percentage by limited partners	13.90%

VARIABLE INTEREST ENTITIES - WK

VARIABLE INTEREST ENTITIES - WKY CoalPlay (Details) - WKY CoalPlay $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)	Nov. 17, 2014company
Variable Interest Entities
Number of limited liability companies related to MGP, that formed the related party together with SGP Land | company		2
Advanced royalty payment | $	$ 10.8

INVESTMENTS - AllDale (Details)

INVESTMENTS - AllDale (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Feb. 28, 2017
Changes in equity method investment
Beginning balance	$ 161,309
Equity method investment income	324	$ 3,736
Ending balance	28,770
All Dale Minerals III
Equity method investments, additional information
Other Commitment			$ 30,000
Changes in equity method investment
Beginning balance	28,974	14,182
Contribution to equity investee		11,400
Equity method investment income	324	42
Distributions received	(528)	(375)
Ending balance	$ 28,770	$ 25,249

INVESTMENTS - Kodiak (Details)

INVESTMENTS - Kodiak (Details) - USD ($) $ in Thousands	Feb. 08, 2019	Mar. 31, 2019	Dec. 31, 2018	Jul. 19, 2017
Equity securities without readily determinable fair value
Equity securities			$ 122,094
Redemption of preferred interest		$ 134,288
Kodiak
Equity securities without readily determinable fair value
Equity securities				$ 100,000
Redemption of preferred interest	$ 135,000
Gain on redemption	$ 11,500

PARTNERS' CAPITAL - Distributio

PARTNERS' CAPITAL - Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands	Apr. 26, 2019	Feb. 14, 2019	Nov. 14, 2018	Aug. 14, 2018	May 15, 2018	Feb. 14, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
PARTNERS' CAPITAL
Quarterly distribution paid (in dollars per unit)		$ 0.5300	$ 0.5250	$ 0.5200	$ 0.5150	$ 0.5100	$ 1.0650		$ 2.0700
Total Cash Distribution		$ 69,011	$ 69,220	$ 69,239	$ 69,047	$ 68,396	$ 69,011	$ 68,396	$ 275,902
Distribution declared (in dollars per unit)	$ 0.5350

PARTNERS' CAPITAL - Repurchase

PARTNERS' CAPITAL - Repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	11 Months Ended
	Mar. 31, 2019	Mar. 31, 2019	May 31, 2018
Partners' capital
Repurchase and retire authorization			$ 100,000
Number of units retired	300,970	3,985,045
Purchase of units under unit repurchase program	$ 5,251	$ 75,900
Repurchase price (in dollars per unit)		$ 19.03
Limited Partners' Capital
Partners' capital
Purchase of units under unit repurchase program	$ 5,251
Simplification Transactions
Partners' capital
Number of units retired		35

PARTNERS' CAPITAL - Change (Det

PARTNERS' CAPITAL - Change (Details) - USD ($) $ in Thousands	3 Months Ended		11 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019
Increase (Decrease) in Partners's Capital
Balance at beginning of period	$ 1,187,687	$ 1,151,486
Balance at beginning of period (in units)	128,095,511
Comprehensive income:
Net income	$ 283,604	156,056
Actuarially determined long-term liability adjustments	(3,584)	1,017
COMPREHENSIVE INCOME	280,020	157,073
Settlement of deferred compensation plans	(7,817)	(2,081)
Simplification Transactions fees		(1)
Purchase of units under unit repurchase program	(5,251)		$ (75,900)
Common unit-based compensation	2,743	3,006
Distributions on deferred common unit-based compensation	(1,280)	(1,062)
General Partners contributions		41
Distributions from consolidated company to affiliate noncontrolling interest	(262)	(162)
Distributions to Partners	(67,731)	(67,334)
Balance at end of period	$ 1,388,109	1,240,966	$ 1,388,109
Balance at end of period (in units)	128,391,191		128,391,191
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Partners's Capital
Balance at beginning of period	$ (46,871)	(51,940)
Comprehensive income:
Actuarially determined long-term liability adjustments	(3,584)	1,017
Balance at end of period	(50,455)	(50,923)	$ (50,455)
Noncontrolling Interest
Increase (Decrease) in Partners's Capital
Balance at beginning of period	5,290	5,348
Comprehensive income:
Net income	7,176	148
Distributions from consolidated company to affiliate noncontrolling interest	(262)	(162)
Balance at end of period	12,204	5,334	12,204
Limited Partners' Capital
Increase (Decrease) in Partners's Capital
Balance at beginning of period	$ 1,229,268	$ 1,183,219
Balance at beginning of period (in units)	128,095,511	130,704,217
Comprehensive income:
Net income	$ 276,428	$ 154,348
Settlement of deferred compensation plans	$ (7,817)	$ (2,081)
Settlement of deferred compensation plans (in units)	596,650	199,039
Simplification Transactions fees		$ (1)
Purchase of units under unit repurchase program	$ (5,251)
Purchase of units under unit repurchase program (in units)	(300,970)
Common unit-based compensation	$ 2,743	3,006
Distributions on deferred common unit-based compensation	(1,280)	(1,062)
Distributions to Partners	(67,731)	(66,660)
Balance at end of period	$ 1,426,360	$ 1,270,769	$ 1,426,360
Balance at end of period (in units)	128,391,191	130,903,256	128,391,191
General Partner's Capital (Deficit)
Increase (Decrease) in Partners's Capital
Balance at beginning of period		$ 14,859
Comprehensive income:
Net income		1,560
General Partners contributions		41
Distributions to Partners		(674)
Balance at end of period		$ 15,786

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of revenues
Revenues	$ 526,602	$ 457,122
Coal sales
Disaggregation of revenues
Revenues	476,016	423,610
Royalties
Disaggregation of revenues
Revenues	10,728
Transportation revenues
Disaggregation of revenues
Revenues	30,238	19,785
Other sales and operating revenues
Disaggregation of revenues
Revenues	9,620	13,727
Illinois Basin
Disaggregation of revenues
Revenues	347,049	294,905
Illinois Basin | Coal sales
Disaggregation of revenues
Revenues	317,270	276,065
Illinois Basin | Transportation revenues
Disaggregation of revenues
Revenues	29,238	18,271
Illinois Basin | Other sales and operating revenues
Disaggregation of revenues
Revenues	541	569
Appalachia
Disaggregation of revenues
Revenues	159,404	147,632
Appalachia | Coal sales
Disaggregation of revenues
Revenues	157,453	145,289
Appalachia | Transportation revenues
Disaggregation of revenues
Revenues	1,000	1,514
Appalachia | Other sales and operating revenues
Disaggregation of revenues
Revenues	951	829
Minerals
Disaggregation of revenues
Revenues	10,728
Minerals | Royalties
Disaggregation of revenues
Revenues	10,728
Other and Corporate
Disaggregation of revenues
Revenues	17,695	24,330
Other and Corporate | Coal sales
Disaggregation of revenues
Revenues	5,290	7,711
Other and Corporate | Other sales and operating revenues
Disaggregation of revenues
Revenues	12,405	16,619
Operating segments
Disaggregation of revenues
Revenues	526,602	457,122
Operating segments | Illinois Basin
Disaggregation of revenues
Revenues	343,052	289,518
Operating segments | Appalachia
Disaggregation of revenues
Revenues	159,404	147,565
Operating segments | Minerals
Disaggregation of revenues
Revenues	10,728
Operating segments | Other and Corporate
Disaggregation of revenues
Revenues	13,418	20,039
Elimination
Disaggregation of revenues
Revenues	(8,274)	(9,745)
Elimination | Coal sales
Disaggregation of revenues
Revenues	(3,997)	(5,455)
Elimination | Other sales and operating revenues
Disaggregation of revenues
Revenues	(4,277)	(4,290)
Elimination | Illinois Basin
Disaggregation of revenues
Revenues	3,997	5,387
Elimination | Appalachia
Disaggregation of revenues
Revenues		67
Elimination | Other and Corporate
Disaggregation of revenues
Revenues	$ 4,277	$ 4,291

REVENUE FROM CONTRACTS WITH C_4

REVENUE FROM CONTRACTS WITH CUSTOMERS - Coal supply contracts (Details) $ in Thousands	Mar. 31, 2019USD ($)
Performance obligations unsatisfied or partially unsatisfied
Total	$ 2,422,264
Illinois Basin
Performance obligations unsatisfied or partially unsatisfied
Total	1,613,447
Appalachia
Performance obligations unsatisfied or partially unsatisfied
Total	804,505
Other and Corporate
Performance obligations unsatisfied or partially unsatisfied
Total	17,349
Elimination
Performance obligations unsatisfied or partially unsatisfied
Total	(13,037)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 1,309,642
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | Illinois Basin
Performance obligations unsatisfied or partially unsatisfied
Total	$ 813,839
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | Appalachia
Performance obligations unsatisfied or partially unsatisfied
Total	$ 491,491
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | Other and Corporate
Performance obligations unsatisfied or partially unsatisfied
Total	$ 17,349
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | Elimination
Performance obligations unsatisfied or partially unsatisfied
Total	$ (13,037)
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 817,035
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Illinois Basin
Performance obligations unsatisfied or partially unsatisfied
Total	$ 560,253
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Appalachia
Performance obligations unsatisfied or partially unsatisfied
Total	$ 256,782
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 280,900
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Illinois Basin
Performance obligations unsatisfied or partially unsatisfied
Total	$ 239,355
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Appalachia
Performance obligations unsatisfied or partially unsatisfied
Total	$ 41,545
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Performance obligations unsatisfied or partially unsatisfied
Total	$ 14,687
Expected timing of satisfaction period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Appalachia
Performance obligations unsatisfied or partially unsatisfied
Total	$ 14,687
Expected timing of satisfaction period

NET INCOME OF ARLP PER LIMITE_3

NET INCOME OF ARLP PER LIMITED PARTNER UNIT - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income of ARLP	$ 276,428	$ 155,908
General partner's equity ownership		(1,560)
LIMITED PARTNERS' INTEREST IN NET INCOME OF ARLP	276,428	154,348
Distributions to participating securities	(1,105)	(1,271)
Undistributed earnings attributable to participating securities	(3,522)	(1,548)
Net income of ARLP available to limited partners	$ 271,801	$ 151,529
Weighted-average limited partner units outstanding – basic and diluted	128,149,791	130,819,217
Basic and diluted net income of ARLP per limited partner unit (in dollars per unit)	$ 2.12	$ 1.16
Anti-dilutive under the treasury stock method (in units)	1,365,000	1,532,000
MGP | Intermediate Partnership
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Ownership percentage by general partners		1.0001%
MGP | Alliance Coal
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Ownership percentage by general partners		0.001%

WORKERS' COMPENSATION AND PNE_3

WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Workers' Compensation Liability (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Reconciliation of changes in the workers' compensation liability
Beginning balance	$ 49,539	$ 54,439
Accruals increase	1,961	2,641
Payments	(3,473)	(2,797)
Interest accretion	401	363
Ending balance	48,428	$ 54,646
Receivables for traumatic injury claims	$ 8,100

WORKERS' COMPENSATION AND PNE_4

WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Periodic Benefit Cost (Details) - Pneumoconiosis benefits - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accrued Workers Compensation And Pneumoconiosis Benefits
Service cost	$ 645	$ 630
Interest cost	760	635
Net amortization	(1,145)	1
Net periodic benefit cost	$ 260	$ 1,266

COMPENSATION PLANS - LTIP Grant

COMPENSATION PLANS - LTIP Grants Activity (Details) - ARLP LTIP - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Number of units
Balance at the beginning of the period (in units)	1,828,080
Granted (in units)	586,644
Vested (in units)	(885,381)
Balance at the end of the period (in units)	1,529,343
Weighted average grant date fair value per unit
Balance at the beginning of the period (in dollars per unit)	$ 17.18
Granted (in dollars per unit)	19.93
Vested (in dollars per unit)	12.38
Balance at the end of the period (in dollars per unit)	$ 21.01
Intrinsic value (in dollars)
Intrinsic value of outstanding grants (in dollars)	$ 31,137	$ 31,699
Other information
Common units issued upon vesting	596,650

COMPENSATION PLANS - LTIP Other

COMPENSATION PLANS - LTIP Other Information (Details) - ARLP LTIP - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other information
Unit-based compensation expense	$ 2.4	$ 2.7
Total unit-based obligation recorded	12.3
Unrecognized compensation expense (in dollars)	$ 19.8
Weighted-average period for recognition of expense	1 year 9 months 18 days
Units for which vesting requirements were deemed satisfied	885,381
Common units issued upon vesting	596,650
Units available for grant	1,900,000

COMPENSATION PLANS - SERP and D

COMPENSATION PLANS - SERP and Directors Compensation Activity (Details) - SERP and Directors' Compensation Plans - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Other information
Unit-based compensation expense		$ 400
Total unit-based obligation recorded	$ 14,800
Phantom Share Units (PSUs)
Summary of units
Balance at the beginning of the period (in units)	635,837
Granted (in units)	16,817
Issued (in units)	(115,484)
Balance at the end of the period (in units)	537,170
Weighted average grant date fair value per unit
Balance at the beginning of the period (in dollars per unit)	$ 27.34
Granted (in dollars per unit)	18.94
Issued (in dollars per unit)	25.20
Balance at the end of the period (in dollars per unit)	$ 27.54
Intrinsic value (in dollars)
Intrinsic value of outstanding grants (in dollars)	$ 10,937		$ 11,025

COMPONENTS OF PENSION PLAN NE_3

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2019	Mar. 31, 2019	Mar. 31, 2018
Defined benefit pension plan
Components of net periodic benefit cost:
Interest cost		$ 1,216	$ 1,116
Expected return on plan assets		(1,232)	(1,436)
Amortization of prior service cost		47	47
Amortization of net loss		979	969
Net periodic benefit cost		1,010	$ 696
2018 plan year
Components of net periodic benefit cost:
Employer contribution		$ 1,200
2019 plan year
Components of net periodic benefit cost:
Employer contribution	$ 1,100

SEGMENT INFORMATION - General (

SEGMENT INFORMATION - General (Details)	3 Months Ended
	Mar. 31, 2019segment
SEGMENT INFORMATION
Number of reportable segments	3

SEGMENT INFORMATION - Segment R

SEGMENT INFORMATION - Segment Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Reportable segment results
Total revenues, As reported	$ 526,602	$ 457,122
Segment Adjusted EBITDA Expense	302,857	279,459
Segment Adjusted EBITDA	206,644	165,190
Total assets	2,485,130	2,243,414	$ 2,394,748
Capital expenditures	84,043	51,525
Illinois Basin
Reportable segment results
Total revenues, As reported	347,049	294,905
Segment Adjusted EBITDA Expense	195,840	181,803
Segment Adjusted EBITDA	121,971	94,830
Total assets	1,422,086	1,425,798
Capital expenditures	47,928	37,448
Appalachia
Reportable segment results
Total revenues, As reported	159,404	147,632
Segment Adjusted EBITDA Expense	99,749	92,498
Segment Adjusted EBITDA	58,655	53,621
Total assets	468,904	463,857
Capital expenditures	33,346	13,376
Minerals
Reportable segment results
Total revenues, As reported	10,728
Segment Adjusted EBITDA Expense	1,827
Segment Adjusted EBITDA	9,132	3,588
Total assets	510,076	158,675
Other and Corporate
Reportable segment results
Total revenues, As reported	17,695	24,330
Segment Adjusted EBITDA Expense	11,474	12,798
Segment Adjusted EBITDA	19,127	15,256
Total assets	462,696	363,632
Capital expenditures	2,769	701
Operating segments
Reportable segment results
Total revenues, As reported	526,602	457,122
Operating segments | Illinois Basin
Reportable segment results
Total revenues, As reported	343,052	289,518
Operating segments | Appalachia
Reportable segment results
Total revenues, As reported	159,404	147,565
Operating segments | Minerals
Reportable segment results
Total revenues, As reported	10,728
Operating segments | Other and Corporate
Reportable segment results
Total revenues, As reported	13,418	20,039
Elimination
Reportable segment results
Total revenues, As reported	(8,274)	(9,745)
Segment Adjusted EBITDA Expense	(6,033)	(7,640)
Segment Adjusted EBITDA	(2,241)	(2,105)
Total assets	(378,632)	(168,548)
Elimination | Illinois Basin
Reportable segment results
Total revenues, As reported	3,997	5,387
Elimination | Appalachia
Reportable segment results
Total revenues, As reported		67
Elimination | Other and Corporate
Reportable segment results
Total revenues, As reported	$ 4,277	$ 4,291

SEGMENT INFORMATION - EBITDA Ex

SEGMENT INFORMATION - EBITDA Expense Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)
Segment Adjusted EBITDA Expense	$ 302,857	$ 279,459
Outside coal purchases		(1,374)
Other expense	(129)	(847)
Operating expenses (excluding depreciation, depletion and amortization)	$ 302,728	$ 277,238

SEGMENT INFORMATION - EBITDA Re

SEGMENT INFORMATION - EBITDA Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Reconciliation of consolidated Segment Adjusted EBITDA to net income
Consolidated Segment Adjusted EBITDA	$ 206,644	$ 165,190
General and administrative	(17,812)	(16,651)
Depreciation, depletion and amortization	(71,139)	(61,848)
Settlement gain		80,000
Interest expense, net	(11,331)	(10,793)
Acquisition gain	177,043
Income tax (expense) benefit	106	10
Acquisition gain attributable to noncontrolling interest	(7,083)
NET INCOME ATTRIBUTABLE TO ALLIANCE RESOURCE PARTNERS, L.P. ("NET INCOME OF ARLP")	276,428	155,908
Noncontrolling interest	7,176	148
Net income	$ 283,604	$ 156,056