Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 25, 2022 | Jun. 30, 2021 | |
Document and Entity Information | |||||
Document Type | 10-K | ||||
Document Annual Report | true | ||||
Document Transition Report | false | ||||
Document Period End Date | Dec. 31, 2021 | ||||
Entity File Number | 0-26823 | ||||
Entity Registrant Name | ALLIANCE RESOURCE PARTNERS LP | ||||
Entity Incorporation, State or Country Code | DE | ||||
Entity Tax Identification Number | 73-1564280 | ||||
Entity Address, Address Line One | 1717 South Boulder Avenue, Suite 400 | ||||
Entity Address, City or Town | Tulsa | ||||
Entity Address, State or Province | OK | ||||
Entity Address, Postal Zip Code | 74119 | ||||
City Area Code | 918 | ||||
Local Phone Number | 295-7600 | ||||
Title of 12(b) Security | Common Units | ||||
Trading Symbol | ARLP | ||||
Security Exchange Name | NASDAQ | ||||
Entity Well-known Seasoned Issuer | Yes | ||||
Entity Voluntary Filers | No | ||||
Entity Current Reporting Status | Yes | ||||
Entity Interactive Data Current | Yes | ||||
Entity Filer Category | Large Accelerated Filer | ||||
Entity Small Business | false | ||||
Entity Emerging Growth Company | false | ||||
ICFR Auditor Attestation Flag | true | ||||
Entity Shell Company | false | ||||
Entity Common Units Outstanding | 127,195,219 | ||||
Entity Public Float | $ 745,685,497 | ||||
Auditor Name | GRANT THORNTON LLP | Ernst & Young LLP | Ernst & Young LLP | ||
Auditor Firm ID | 248 | 42 | 42 | ||
Auditor Location | Tulsa, Oklahoma | Tulsa, Oklahoma | Tulsa, Oklahoma | ||
Entity Central Index Key | 0001086600 | ||||
Current Fiscal Year End Date | --12-31 | ||||
Document Fiscal Year Focus | 2021 | ||||
Document Fiscal Period Focus | FY | ||||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 122,403 | $ 55,574 |
Trade receivables | 129,531 | 104,579 |
Other receivables | 680 | 3,481 |
Inventories, net | 60,302 | 56,407 |
Advance royalties | 4,958 | 4,168 |
Prepaid expenses and other assets | 21,354 | 21,565 |
Total current assets | 339,228 | 245,774 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Property, plant and equipment, at cost | 3,608,347 | 3,554,090 |
Less accumulated depreciation, depletion and amortization | (1,909,669) | (1,753,845) |
Total property, plant and equipment, net | 1,698,678 | 1,800,245 |
OTHER ASSETS: | ||
Advance royalties | 63,524 | 56,791 |
Equity method investments | 26,325 | 27,268 |
Goodwill | 4,373 | 4,373 |
Operating lease right-of-use assets | 14,158 | 15,004 |
Other long-term assets | 13,120 | 16,561 |
Total other assets | 121,500 | 119,997 |
TOTAL ASSETS | 2,159,406 | 2,166,016 |
CURRENT LIABILITIES: | ||
Accounts payable | 69,586 | 47,511 |
Accrued taxes other than income taxes | 17,787 | 25,054 |
Accrued payroll and related expenses | 36,805 | 28,524 |
Accrued interest | 5,000 | 5,132 |
Workers' compensation and pneumoconiosis benefits | 12,293 | 10,646 |
Current finance lease obligations | 840 | 766 |
Current operating lease obligations | 1,820 | 1,854 |
Other current liabilities | 17,375 | 21,919 |
Current maturities, long-term debt, net | 16,071 | 73,199 |
Total current liabilities | 177,577 | 214,605 |
LONG-TERM LIABILITIES: | ||
Long-term debt, excluding current maturities, net | 418,942 | 519,421 |
Pneumoconiosis benefits | 107,560 | 105,068 |
Accrued pension benefit | 25,590 | 46,965 |
Workers' compensation | 44,911 | 47,521 |
Asset retirement obligations | 123,517 | 121,487 |
Long-term finance lease obligations | 618 | 1,458 |
Long-term operating lease obligations | 12,366 | 13,078 |
Other liabilities | 22,256 | 24,146 |
Total long-term liabilities | 755,760 | 879,144 |
Total liabilities | 933,337 | 1,093,749 |
COMMITMENTS AND CONTINGENCIES - (Note 22) | ||
ARLP Partners' Capital: | ||
Limited Partners - Common Unitholders 127,195,219 units outstanding | 1,279,183 | 1,148,565 |
Accumulated other comprehensive loss | (64,229) | (87,674) |
Total ARLP Partners' Capital | 1,214,954 | 1,060,891 |
Noncontrolling interest | 11,115 | 11,376 |
Total Partners' Capital | 1,226,069 | 1,072,267 |
TOTAL LIABILITIES AND PARTNERS' CAPITAL | $ 2,159,406 | $ 2,166,016 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Common units outstanding | 127,195,219 | 127,195,219 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SALES AND OPERATING REVENUES: | |||
Revenues | $ 1,569,976 | $ 1,328,129 | $ 1,961,720 |
EXPENSES: | |||
Operating expenses (excluding depreciation, depletion and amortization) | 943,257 | 859,656 | 1,182,100 |
Outside coal purchases | 6,372 | 23,357 | |
General and administrative | 70,160 | 59,806 | 72,997 |
Depreciation, depletion and amortization | 261,377 | 313,387 | 309,075 |
Asset impairments | 24,977 | 15,190 | |
Goodwill impairment | 0 | 132,026 | 0 |
Total operating expenses | 1,350,773 | 1,410,981 | 1,702,222 |
INCOME (LOSS) FROM OPERATIONS | 219,203 | (82,852) | 259,498 |
Interest expense (net of interest capitalized of $396, $1,325 and $1,211, respectively) | (39,229) | (45,613) | (45,875) |
Interest income | 88 | 135 | 379 |
Equity method investment income | 2,130 | 907 | 2,203 |
Equity securities income | 12,906 | ||
Acquisition gain | 177,043 | ||
Other expense | (3,020) | (1,593) | 561 |
INCOME (LOSS) BEFORE INCOME TAXES | 179,172 | (129,016) | 406,715 |
INCOME TAX EXPENSE | 417 | 35 | (211) |
NET INCOME (LOSS) | 178,755 | (129,051) | 406,926 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | (598) | (169) | (7,512) |
NET INCOME (LOSS) ATTRIBUTABLE TO ARLP | $ 178,157 | $ (129,220) | $ 399,414 |
EARNINGS PER LIMITED PARTNER UNIT - BASIC (in dollars per unit) | $ 1.36 | $ (1.02) | $ 3.07 |
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING - BASIC (in units) | 127,195,219 | 127,164,659 | 128,116,670 |
Coal sales | |||
SALES AND OPERATING REVENUES: | |||
Revenues | $ 1,386,923 | $ 1,232,272 | $ 1,762,442 |
Oil & gas royalties | |||
SALES AND OPERATING REVENUES: | |||
Revenues | 74,988 | 42,912 | 51,735 |
Transportation revenues | |||
SALES AND OPERATING REVENUES: | |||
Revenues | 69,607 | 21,129 | 99,503 |
EXPENSES: | |||
Transportation expenses | 69,607 | 21,129 | 99,503 |
Other revenues | |||
SALES AND OPERATING REVENUES: | |||
Revenues | $ 38,458 | $ 31,816 | $ 48,040 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Interest expense, interest capitalized | $ 396 | $ 1,325 | $ 1,211 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
NET INCOME (LOSS) | $ 178,755 | $ (129,051) | $ 406,926 |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Total recognized in accumulated other comprehensive loss | 23,445 | (9,681) | (31,122) |
OTHER COMPREHENSIVE INCOME | 23,445 | (9,681) | (31,122) |
COMPREHENSIVE INCOME (LOSS) | 202,200 | (138,732) | 375,804 |
Less: Comprehensive income attributable to noncontrolling interest | (598) | (169) | (7,512) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ARLP | 201,602 | (138,901) | 368,292 |
Defined benefit pension plan | |||
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Amortization of prior service cost | 186 | 186 | 186 |
Net actuarial gain (loss) | 14,921 | (5,522) | (7,350) |
Amortization of net actuarial loss (gain) | 4,327 | 4,128 | 3,922 |
Total recognized in accumulated other comprehensive loss | 19,434 | (1,208) | (3,242) |
Pneumoconiosis benefits | |||
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Net actuarial gain (loss) | (161) | (7,787) | (23,298) |
Amortization of net actuarial loss (gain) | 4,172 | (686) | (4,582) |
Total recognized in accumulated other comprehensive loss | $ 4,011 | $ (8,473) | $ (27,880) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 178,755 | $ (129,051) | $ 406,926 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 261,377 | 313,387 | 309,075 |
Non-cash compensation expense | 5,709 | 3,345 | 11,934 |
Asset retirement obligations | 3,688 | 4,033 | 4,087 |
Coal inventory adjustment to market | 70 | 3,245 | 4,895 |
Equity investment income | (2,130) | (907) | (2,203) |
Distributions from equity method investments | 2,130 | 907 | 2,203 |
Income from equity securities paid-in-kind | (712) | ||
Net loss (gain) on sale of property, plant and equipment | (6,592) | (5,850) | 109 |
Asset impairment | 24,977 | 15,190 | |
Goodwill impairment | 0 | 132,026 | 0 |
Acquisition gain, net | (177,043) | ||
Cash received on redemption of equity securities in excess of investment | (11,482) | ||
Valuation allowance of deferred tax assets | (834) | 1,151 | (413) |
Other | 212 | 6,631 | 5,677 |
Changes in operating assets and liabilities: | |||
Trade receivables | (24,952) | 56,172 | 20,841 |
Other receivables | 3,109 | (3,225) | 3,726 |
Inventories, net | (4,673) | 30,522 | (35,082) |
Prepaid expenses and other assets | 211 | (2,514) | 6,136 |
Advance royalties | (7,523) | (7,690) | (9,876) |
Accounts payable | 19,481 | (24,282) | (17,671) |
Accrued taxes other than income taxes | (7,267) | 9,286 | (994) |
Accrued payroll and related benefits | 8,281 | (8,051) | (6,538) |
Pneumoconiosis benefits | 6,832 | 2,340 | (2,292) |
Workers' compensation | (1,292) | 1,355 | 3,845 |
Other | (9,390) | (7,162) | (15,443) |
Total net adjustments | 246,447 | 529,696 | 107,969 |
Net cash provided by operating activities | 425,202 | 400,645 | 514,895 |
Property, plant and equipment: | |||
Capital expenditures | (122,984) | (121,101) | (305,858) |
Change in accounts payable and accrued liabilities | 2,594 | (8,773) | (81) |
Proceeds from sale of property, plant and equipment | 7,719 | 3,762 | 1,266 |
Distributions received from investments in excess of cumulative earnings | 943 | 988 | 2,501 |
Payments for acquisitions of businesses, net of cash acquired | (320,232) | ||
Oil & gas reserve acquisition | (30,960) | ||
Cash received from redemption of equity securities | 134,288 | ||
Net cash used in investing activities | (142,688) | (125,124) | (488,116) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under securitization facility | 35,000 | 46,100 | 184,500 |
Payments under securitization facility | (90,900) | (64,000) | (202,700) |
Proceeds from equipment financings | 14,705 | 63,086 | |
Payments on equipment financings | (17,299) | (14,805) | (2,607) |
Borrowings under revolving credit facilities | 15,000 | 70,000 | 400,000 |
Payments under revolving credit facilities | (102,500) | (237,500) | (320,000) |
Borrowings from line of credit | 5,340 | ||
Payment on line of credit | (5,340) | ||
Payments on finance lease obligations | (766) | (8,368) | (46,725) |
Payment of debt issuance costs | (113) | (6,280) | |
Payments for purchases of units under unit repurchase program | (22,892) | ||
Payments for purchase of units and tax withholdings related to settlements under deferred compensation plans | (1,090) | (1,310) | (7,817) |
Cash settlement of grants under deferred compensation plan | (2,490) | ||
Distributions paid to Partners | (52,158) | (51,753) | (278,425) |
Other | (859) | (728) | (867) |
Net cash used in financing activities | (215,685) | (256,429) | (234,447) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 66,829 | 19,092 | (207,668) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 55,574 | 36,482 | 244,150 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 122,403 | $ 55,574 | $ 36,482 |
CONSOLIDATED STATEMENT OF PARTN
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL - USD ($) $ in Thousands | Limited Partners' Capital | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total |
Balance at beginning of period at Dec. 31, 2018 | $ 1,229,268 | $ (46,871) | $ 5,290 | $ 1,187,687 |
Balance at beginning of period (in units) at Dec. 31, 2018 | 128,095,511 | |||
Comprehensive income: | ||||
Net income (loss) | $ 399,414 | 7,512 | 406,926 | |
Actuarially determined long-term liability adjustments | (31,122) | (31,122) | ||
COMPREHENSIVE INCOME (LOSS) | 375,804 | |||
Settlement of deferred compensation plans | $ (7,817) | (7,817) | ||
Settlement of deferred compensation plans (in units) | 596,650 | |||
Purchase of units under unit repurchase program | $ (22,892) | (22,892) | ||
Purchase of units under unit repurchase program (in units) | (1,776,564) | |||
Common unit-based compensation | $ 11,934 | 11,934 | ||
Distributions on deferred common unit-based compensation | (3,670) | (3,670) | ||
Distributions from consolidated company to affiliate noncontrolling interest | (867) | (867) | ||
Distributions to Partners | (274,755) | (274,755) | ||
Balance at end of period at Dec. 31, 2019 | $ 1,331,482 | (77,993) | 11,935 | 1,265,424 |
Balance at end of period (in units) at Dec. 31, 2019 | 126,915,597 | |||
Comprehensive income: | ||||
Net income (loss) | $ (129,220) | 169 | (129,051) | |
Actuarially determined long-term liability adjustments | (9,681) | (9,681) | ||
COMPREHENSIVE INCOME (LOSS) | (138,732) | |||
Settlement of deferred compensation plans | $ (3,800) | (3,800) | ||
Settlement of deferred compensation plans (in units) | 279,622 | |||
Common unit-based compensation | $ 3,345 | 3,345 | ||
Distributions on deferred common unit-based compensation | (986) | (986) | ||
Distributions from consolidated company to affiliate noncontrolling interest | (728) | (728) | ||
Distributions to Partners | (50,767) | (50,767) | ||
Other | (1,489) | (1,489) | ||
Balance at end of period at Dec. 31, 2020 | $ 1,148,565 | (87,674) | 11,376 | $ 1,072,267 |
Balance at end of period (in units) at Dec. 31, 2020 | 127,195,219 | 127,195,219 | ||
Comprehensive income: | ||||
Net income (loss) | $ 178,157 | 598 | $ 178,755 | |
Actuarially determined long-term liability adjustments | 23,445 | 23,445 | ||
COMPREHENSIVE INCOME (LOSS) | 202,200 | |||
Settlement of deferred compensation plans | (1,090) | (1,090) | ||
Common unit-based compensation | 5,709 | 5,709 | ||
Distributions on deferred common unit-based compensation | (1,280) | (1,280) | ||
Distributions from consolidated company to affiliate noncontrolling interest | (859) | (859) | ||
Distributions to Partners | (50,878) | (50,878) | ||
Balance at end of period at Dec. 31, 2021 | $ 1,279,183 | $ (64,229) | $ 11,115 | $ 1,226,069 |
Balance at end of period (in units) at Dec. 31, 2021 | 127,195,219 | 127,195,219 |
ORGANIZATION AND PRESENTATION
ORGANIZATION AND PRESENTATION | 12 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION AND PRESENTATION | |
ORGANIZATION AND PRESENTATION | 1. ORGANIZATION AND PRESENTATION Significant Relationships Referenced in Notes to 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 "Mr. Craft" mean Joseph W. Craft III, the Chairman, President and Chief Executive Officer of MGP. ● References to "Intermediate Partnership" mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P. ● References to "Alliance Coal" mean Alliance Coal, LLC, the holding company for our coal mining operations. ● References to "Alliance Minerals" mean Alliance Minerals, LLC, the holding company for our oil and gas minerals interests. ● References to "Alliance Resource Properties" mean Alliance Resource Properties, LLC, the land holding company for certain of our coal mineral interests, including the subsidiaries of Alliance Resource Properties, LLC. 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 ("ARH"), 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. Alliance GP, LLC ("AGP"), which is indirectly wholly owned by Mr. Craft, is the direct owner of MGP. AllDale I & II Acquisition On January 3, 2019 (the "AllDale 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 "AllDale Acquisition"). As a result of the AllDale Acquisition and our previous investments held through Cavalier Minerals, we acquired control of approximately 43,000 net royalty acres in premier oil & gas resource plays. The AllDale Acquisition provides us with diversified exposure to industry leading operators. Wing Acquisition On August 2, 2019, our subsidiary AR Midland, LP ("AR Midland") acquired from Wing Resources LLC and Wing Resources II LLC (collectively, "Wing") approximately 9,000 net royalty acres in the Midland Basin (the "Wing Acquisition"). The Wing Acquisition enhances our ownership position in the Permian Basin and expands our exposure to industry leading operators. Boulders Acquisition On October 13, 2021, AR Midland acquired approximately 1,480 oil & gas net royalty acres in the Delaware Basin from Boulders Royalty Corp. ("Boulders") for a purchase price of $31.0 million (the "Boulders Acquisition"). This acquisition also enhanced our ownership position in the Permian Basin These acquisitions furthered our business strategy to grow our Oil & Gas Royalties segment through accretive acquisitions. See Note 3 – Acquisitions for more information. We now hold approximately 57,000 net royalty acres in premier oil & gas resource plays including our investment in AllDale Minerals III, LP ("AllDale III"). Presentation The consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of December 31, 2021 and 2020, and results of our operations, comprehensive income, cash flows and changes in partners' capital for each of the three years in the period ended December 31, 2021. All of our intercompany transactions and accounts have been eliminated. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation Variable Interest Entity ("VIE") To determine a VIE's primary beneficiary, we perform a qualitative assessment to determine which party, if any, has the power to direct activities of the VIE and the obligation to absorb losses and/or receive its benefits. This assessment involves identifying the activities that most significantly impact the VIE's economic performance and determine whether it, or another party, has the power to direct those activities. When evaluating whether we are the primary beneficiary of a VIE, we perform a qualitative analysis that considers the design of the VIE, the nature of our involvement and the variable interests held by other parties. See Note 12 – Variable Interest Entities for further information. Estimates ● Impairment assessments of investments, property, plant and equipment, and goodwill; ● Asset retirement obligations; ● Pension valuation variables; ● Workers' compensation and pneumoconiosis valuation variables; ● Acquisition related purchase price allocations; ● Life of mine assumptions; ● Oil & gas reserve quantities and carrying amounts; and ● Determination of oil & gas revenue accruals These significant estimates and assumptions are discussed throughout these notes to the consolidated financial statements. Fair Value Measurements techniques used in our fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our own market assumptions. We use the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: ● Level 1 – Quoted prices for identical assets and liabilities in active markets that we have the ability to access at the measurement date. ● Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations whose inputs are observable or whose significant value drivers are observable. ● Level 3 – Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement requires judgment, considering factors specific to the asset or liability. Significant fair value measurements are used in our significant estimates and are discussed throughout these notes. Cash and Cash Equivalents Cash Management Inventories Business Combinations Goodwill Property, Plant and Equipment mine. Depreciable lives for buildings, office equipment and improvements range from 1 to 29 years. Gains or losses arising from retirements are included in operating expenses. Depletion of coal mineral rights is provided on the basis of tonnage mined in relation to estimated recoverable tonnage, which equals estimated proven and probable coal mineral reserves. Therefore, our coal mineral rights are depleted based on only proven and probable coal mineral reserves. See Oil & Gas Reserve Quantities and Carrying Amounts below for a discussion of our accounting policies for oil & gas properties. Mine Development Costs Leases 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. Long-Lived Asset Impairment Oil & Gas Reserve Quantities and Carrying Amounts Mineral interests in oil & gas properties are grouped using a reasonable aggregation of properties with a common geological structural feature or stratigraphic condition, which we may also refer to as a depletable group. Mineral interests in proved oil & gas properties are depleted based on the units-of-production method. Proved reserves are quantities of oil & gas that can be estimated with reasonable certainty to be recoverable in the future from a given date forward, from known reservoirs, under existing economic conditions, operating methods, and government regulations. Proved developed resources are the quantities expected to be recovered through our operators' existing wells with existing equipment, infrastructure and operating methods. We evaluate impairment of our oil & gas mineral interests in proved properties whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. This evaluation is performed on a depletable group basis. We compare the undiscounted projected future cash flows expected in connection with a depletable group to its unamortized carrying amount to determine recoverability. When the carrying amount of a depletable group exceeds its estimated undiscounted future cash flows, the carrying amount is written down to its fair value, which is measured as the present value of the projected future cash flows of such properties. The factors used to determine fair value include estimates of proved reserves, future commodity prices, timing of future production, future expenditures, and a risk-adjusted discount rate. Our oil & gas mineral interests in unproved properties are also assessed for impairment periodically but at least annually when facts and circumstances indicate that the unproved property will not be transferred to proved properties. Impairment of individual unproved properties whose acquisition costs are relatively significant are assessed on a property-by-property basis, and an impairment loss is recognized if we determine that the unproved property will not be transferred to proved properties. Impairment of unproved properties whose acquisition costs are not individually significant are assessed on a group basis. Any amount of loss to be recognized and the amount of a valuation allowance needed to provide for impairment of those properties is determined by amortizing those properties in the aggregate on the basis of historical experience and other relevant information, such as the relative proportion of such properties on which proved reserves have been found in the past. Upon the sale of a complete depletable group, the book value thereof, less proceeds or salvage value, are charged to income. Upon the sale or retirement of an aggregation of interests which make up less than a complete depletable group, the proceeds are credited to accumulated depreciation, depletion and amortization, unless doing so would significantly alter the depreciation, depletion and amortization rate of the depletable group, in which case a gain or loss would be recorded. Intangibles Prepaid expenses and other assets Other long-term assets December 31, 2021 December 31, 2020 Accumulated Intangibles, Accumulated Intangibles, Original Cost Amortization Net Original Cost Amortization Net (in thousands) Customer contracts and other 10,623 (9,504) 1,119 10,623 (5,744) 4,879 Mining permits 1,500 (418) 1,082 1,500 (373) 1,127 Total $ 12,123 $ (9,922) $ 2,201 $ 12,123 $ (6,117) $ 6,006 Amortization expense attributable to intangible assets is estimated as follows: Year Ended December 31, (in thousands) 2022 $ 1,164 2023 45 2024 45 2025 45 2026 45 Thereafter 857 Investments Distributions received on those investments are recorded as income unless those distributions are considered a return on investment, in which case the historical cost is reduced. We accounted for our ownership interests in Kodiak Gas Services, LLC ("Kodiak") as equity securities without readily determinable fair values. In the first quarter of 2019, Kodiak redeemed our preferred interests and therefore Kodiak ceased to be an equity security investment. See Note 13 – Investments for further discussion of this investment. Our investments and ownership interests in entities in which we do not have a controlling financial interest are accounted for under the equity method of accounting if we have the ability to exercise significant influence over the entity. Investments accounted for under the equity method are initially recorded at cost, and the difference between the basis of our investment and the underlying equity in the net assets of the joint venture at the investment date, if any, is amortized over the lives of the related assets that gave rise to the difference. We hold an equity method investment in AllDale III through our subsidiary, Alliance Minerals. See Note 13 – Investments for further discussion of our equity method investment in AllDale III. We review our investments for impairment whenever events or changes in circumstances indicate a loss in the value of the investment may be other-than-temporary. Advance Royalties Advance royalties December 31, 2021 2020 (in thousands) Advance royalties, affiliates (see Note 21 – Related-Party Transactions) $ 55,613 $ 48,389 Advance royalties, third-parties 12,869 12,570 Total advance royalties $ 68,482 $ 60,959 Asset Retirement Obligations Pension Benefits The discount rate is determined for our pension benefit plan based on an approach specific to our plan. The year end discount rate is determined considering a yield curve comprised of high-quality corporate bonds and the timing of the expected benefit cash flows. The expected long-term rate of return on plan assets is determined based on broad equity and bond indices, the investment goals and objectives, the target investment allocation and on the average annual total return for each asset class. Unrecognized actuarial gains and losses and unrecognized prior service costs and credits are deferred and recorded in accumulated other comprehensive loss until amortized as a component of net periodic benefit cost. Unrecognized actuarial gains and losses in excess of 10% of the greater of the benefit obligation or the market-related value of plan assets are amortized over the participants' average remaining future years of service. Workers Compensation and Pneumoconiosis (Black Lung) Benefits We provide income replacement and medical treatment for work-related traumatic injury claims as required by applicable state laws. Workers' compensation laws also compensate survivors of workers who suffer employment related deaths. Our liability for traumatic injury claims is the estimated present value of current workers' compensation benefits, based on our actuarial estimates. Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claim development patterns, mortality, medical costs and interest rates. Our pneumoconiosis benefits liability is calculated using the service cost method based on the actuarial present value of the estimated pneumoconiosis obligation. Our actuarial calculations are based on numerous assumptions including claim development patterns, medical costs and mortality. Actuarial gains or losses are amortized over the remaining service period of active miners. See Note 20 – Accrued Workers' Compensation and Pneumoconiosis Benefits for more information on Workers' Compensation and Pneumoconiosis Benefits. Coal Revenue Recognition The estimated transaction price from each of our contracts is based on the total amount of consideration we expect to be entitled to under the contract. Included in the transaction price for certain coal supply contracts is the impact of variable consideration, including quality price adjustments, handling services, government imposition claims, per ton price fluctuations based on certain coal sales price indices and anticipated payments in lieu of shipments. We have constrained the expected value of variable consideration in our estimation of transaction price and only included this consideration to the extent that it is probable that a significant revenue reversal will not occur. The estimated transaction price for each contract is allocated to our performance obligations based on relative standalone selling prices determined at contract inception. Variable consideration is allocated to a specific part of the contract in many instances, such as if the variable consideration is based on production activities for coal delivered during a certain period or the outcome of a customer's ability to accept coal shipments over a certain period. Contract assets are recorded as trade receivables and reported separately in our consolidated balance sheet from other contract assets as title passes to the customer and our right to consideration becomes unconditional. Payments for coal shipments are typically due within two four weeks services passes to the customer thereby granting us an unconditional right to receive consideration. Contract liabilities relate to consideration received in advance of the satisfaction of our performance obligations. Contract liabilities are recognized as revenue at the point in time when control of the good or service passes to the customer. Oil & Gas Revenue Recognition We also periodically earn revenue from lease bonuses. We recognize lease bonus revenue when we execute a lease of our mineral interests to exploration and production companies. A lease agreement represents our contract with an operator, which is generally an exploration and production company. The contract will (a) generally transfer the rights to any oil or gas discovered, (b) grant us a right to a specified royalty interest from the operator, and (c) require the operator to commence drilling and complete operations within a specified time period. Control of the minerals transfers to the operator when the lease agreement is executed. At the time we execute the lease agreement, we expect to receive the lease bonus payment within a reasonable time, though in no case more than one year, such that we do not adjust the expected amount of consideration for the effects of any significant financing component. As a non-operator, we have limited visibility into the timing of when new wells start producing. In addition, production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, we are required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices from our properties are estimated and recorded within the Trade receivables Common Unit-Based Compensation We utilize the Supplemental Executive Retirement Plan ("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 MGP Amended and Restated Deferred Compensation Plan for Directors ("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. The fair value of restricted common unit grants under the LTIP, SERP and the Directors' Deferred Compensation Plan are determined on the grant date of the award and recognized as compensation expense on a pro rata basis for LTIP and SERP awards, as appropriate, over the requisite service period. Compensation expense is fully recognized on the grant date for quarterly distributions credited to SERP accounts and Directors' Deferred Compensation Plan awards. The corresponding liability is classified as equity and included in limited partners' capital in the consolidated financial statements (See Note 17 – Common Unit-Based Compensation Plans). Income Taxes New Accounting Standards Issued and Not Yet Adopted |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2021 | |
ACQUISITION | |
ACQUISITION | 3. ACQUISITION S AllDale I & II On the AllDale 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 $176.2 million, which was funded with cash on hand and borrowings under the Revolving Credit Facility. As a result of the AllDale Acquisition and our previous investments held through Cavalier Minerals, we acquired control of approximately 43,000 net royalty acres strategically positioned primarily in the core of the Permian (Delaware and Midland), Anadarko (SCOOP/STACK) and Williston (Bakken) Basins. The AllDale Acquisition provides us with diversified exposure to industry leading operators and is consistent with our general business strategy to grow our Oil & Gas Royalties segment. Because the underlying mineral interests held by AllDale I & II include royalty interests in both developed properties and undeveloped properties, we have determined that the AllDale Acquisition should be accounted for as a business combination and the underlying assets and liabilities of AllDale I & II should be recorded at their AllDale Acquisition Date fair value on our consolidated balance sheet. The final total fair value of the cash paid in the AllDale Acquisition and our previous investments were as follows: As of January 3, 2019 (in thousands) Cash $ 176,205 Previously held investments 307,322 Total $ 483,527 Prior to the AllDale 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 AllDale 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 AllDale Acquisition. The re-measurement resulted in a gain of $177.0 million which is recorded in the Acquisition gain line item in our consolidated statements of income. The following table summarizes the final fair value allocation of assets acquired and liabilities assumed as of the AllDale Acquisition Date: (in thousands) Cash and cash equivalents $ 900 Mineral interests in proved properties 184,032 Mineral interests in unproved properties 291,190 Receivables 9,326 Accounts payable (1,921) Net assets acquired $ 483,527 Our previous equity method investments in AllDale I & II were held through Cavalier Minerals. Bluegrass Minerals Management, LLC ("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 AllDale Acquisition. This Bluegrass Interest represents an indirect noncontrolling interest in AllDale I & II. The AllDale Acquisition Date fair value of the Bluegrass Interest was $12.3 million. The fair value of our previous equity method investments, the mineral interests and the Bluegrass Interest were determined using an income approach primarily comprised of discounted cash flow models. The assumptions used in the discounted cash flow models include 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 measurements represent Level 3 fair value measurements. AllDale I & II's carrying value of the receivables and accounts payable represent their fair value given their short-term nature. The amounts of revenue and earnings, exclusive of the acquisition gain, of AllDale I & II included in our consolidated statements of income from the AllDale Acquisition Date through December 31, 2019 are as follows: Year Ended December 31, 2019 (in thousands) Revenue $ 48,411 Net income 18,543 Wing On August 2, 2019 (the "Wing Acquisition Date"), our subsidiary, AR Midland acquired from Wing approximately 9,000 net royalty acres in the Midland Basin for a cash purchase price of $144.9 million. The purchase price was funded with cash on hand and borrowings under our Revolving Credit Facility discussed in Note 8 – Long-Term Debt. The Wing Acquisition enhances our ownership position in the Permian Basin, expands our exposure to industry leading operators and furthers our business strategy to grow our Oil & Gas Royalties segment. Concurrent with the Wing Acquisition, JC Resources LP, an entity owned by Mr. Craft, acquired from Wing, in a separate transaction, mineral interests that we elected not to acquire. Because the mineral interests acquired in the Wing Acquisition include royalty interests in both developed properties and undeveloped properties, we have determined that the acquisition should be accounted for as a business combination and the underlying assets should be recorded at fair value as of the Wing Acquisition Date on our consolidated balance sheet. The following table summarizes our final fair value allocation of assets acquired as of the Wing Acquisition Date: (in thousands) Mineral interests in proved properties $ 75,071 Mineral interests in unproved properties 67,701 Receivables 2,155 Net assets acquired $ 144,927 The fair value of the mineral interests was determined using a weighting of both income and market approaches. Our income approach primarily comprised a discounted cash flow model. The assumptions used in the discounted cash flow model included estimated production, projected cash flows, forward oil & gas prices and a weighted average cost of capital. Our market approach consisted of the observation of recent acquisitions in the Permian Basin to determine a market price for similar mineral interests. Certain assumptions used in our valuation are not observable in active markets; therefore, the fair value measurements represent Level 3 fair value measurements. The carrying value of the receivables represents the fair value given the short-term nature of the receivables. The amounts of revenue and earnings from the mineral interests acquired in the Wing Acquisition included in our consolidated statements of income from the Wing Acquisition Date through December 31, 2019 are as follows: Year Ended December 31, 2019 (in thousands) Revenue $ 4,625 Net income 1,291 The following represents our actual and pro forma consolidated revenues and net income for the year ended December 31, 2019. Pro forma revenues and net income assumes the mineral interests acquired in the Wing Acquisition had been included in our consolidated results since January 1, 2019. These pro forma amounts have been calculated after applying our accounting policies. Year Ended December 31, 2019 (in thousands) Total revenues As reported $ 1,961,720 Pro forma 1,966,291 Net income As reported $ 406,926 Pro forma 411,217 Boulders On October 13, 2021, AR Midland acquired approximately 1,480 oil & gas net royalty acres in the Delaware Basin from Boulders for a purchase price of $31.0 million. This acquisition gives us increased exposure to a prolific area of the Delaware Basin and is within close proximity to reserves acquired in the AllDale and Wing Acquisitions. The acreage is mostly undeveloped. Because more than 90% of the mineral interests acquired in the Boulders Acquisition represent undeveloped properties, including proved undeveloped, we have determined that the Boulders Acquisition should be accounted for as an asset acquisition. We have allocated the purchase price to the acquired reserves as follows: (in thousands) Mineral interests in proved properties $ 12,542 Mineral interests in unproved properties 18,419 $ 30,961 |
LONG-LIVED ASSET IMPAIRMENTS
LONG-LIVED ASSET IMPAIRMENTS | 12 Months Ended |
Dec. 31, 2021 | |
LONG-LIVED ASSET IMPAIRMENTS | |
LONG-LIVED ASSET IMPAIRMENTS | 4. LONG-LIVED ASSET IMPAIRMENT S During the year ended December 31, 2020, we recorded $23.5 million of non-cash asset impairment charges in our Illinois Basin Coal Operations segment due to sealing our idled Gibson North mine, resulting in its permanent closure, and a decrease in the fair value of certain mining equipment at our idled operations and greenfield coal mineral resources as a result of weakened coal market conditions including the impact of the COVID-19 pandemic. During the same period, we also recorded an asset impairment charge of $1.5 million in our Coal Royalties segment due to a decrease in the fair value of greenfield coal mineral resources held by Alliance Resource Properties near our coal mining operations in the Illinois Basin. See Note 24 – Segment Information for more information about our segments. During the year ended December 31, 2019, we recorded asset impairment charges in our Illinois Basin Coal Operations segment and our Coal Royalties segment of $7.5 million and $7.7 million, respectively, due to the cessation of coal production at our Dotiki mine, effective August 16, 2019, in an effort to focus on maximizing production at our lower-cost mines in the Illinois Basin. We adjusted the carrying value of assets associated with the Dotiki mine, including coal mineral reserves and resources held at Alliance Resource Properties, from $35.9 million to their fair value of $25.8 million and accrued $5.1 million with respect to scheduled payments to WKY CoalPlay, LLC ("WKY CoalPlay") for leased coal mineral reserves and resources from which we may not receive future economic benefit. See Note 12 – Variable Interest Entities for more information about WKY CoalPlay. The fair values of the impaired assets were determined using a market approach, which represents Level 3 fair value measurements under the fair value hierarchy. The fair value analysis used assumptions regarding the marketability of certain mining and coal mineral reserve and resource assets near our Illinois Basin coal mining operations. See Note 2 – Summary of Significant Accounting Policies – Long-Lived Asset Impairment for more information on our accounting policy for asset impairments. |
GOODWILL IMPAIRMENT
GOODWILL IMPAIRMENT | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL IMPAIRMENT | |
GOODWILL IMPAIRMENT | 5. GOODWILL IMPAIRMENT During the first quarter of 2020, we considered whether an interim test of our consolidated goodwill of $136.4 million was necessary. Our consolidated goodwill included $132.0 million recorded in our Illinois Basin Coal Operations segment in conjunction with our acquisition of the Hamilton County Coal, LLC ("Hamilton") mine on July 31, 2015. We assessed certain events and changes in circumstances, including (a) adverse industry and market developments, including the impact of the COVID-19 pandemic, (b) our response to these developments, including temporarily ceasing production at several mines, including our Hamilton mine and (c) our actual performance during the quarter. After consideration of these events and changes in circumstances, we performed an interim test of the goodwill associated with Hamilton comparing Hamilton's carrying amount to its fair value. We estimated the fair value of Hamilton using an income approach utilizing a discounted cash flow model. The assumptions used in the discounted cash flow model included estimated production, forward coal prices, operating expenses, capital expenditures and a weighted average cost of capital. Our forecasts of future cash flows considered market conditions at the time of the assessment and our estimate of the mine's performance in future years based on the information available to us. Key assumptions used in our valuation were not observable in active markets; therefore, the fair value measurements represent Level 3 fair value measurements. The fair value of Hamilton was determined to be below its carrying amount (including goodwill) by more than the recorded balance of goodwill associated with the mine. Accordingly, we recognized an impairment charge of $132.0 million consisting of the total carrying amount of goodwill associated with Hamilton. This impairment charge reduced our consolidated goodwill balance to $4.4 million. During the first quarter of 2020, we also performed an interim test on our remaining goodwill balances not associated with Hamilton and concluded no impairment was necessary for our other reporting units. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
INVENTORIES | |
INVENTORIES | 6. INVENTORIES Inventories consist of the following : December 31, 2021 2020 (in thousands) Coal $ 24,845 $ 19,756 Supplies (net of reserve for obsolescence of $5,554 and $5,547, respectively) 35,457 36,651 Total inventories, net $ 60,302 $ 56,407 For the year ended December 31, 2020, we recorded lower of cost or net realizable value adjustments of $3.2 million to our coal inventories as a result of lower coal sale prices and higher cost per ton due to the impact of lower production on our fixed costs per ton in addition to the impact of challenging market conditions on our production levels. The lower of cost or net realizable value adjustments reflect the impacts of the challenging market conditions and were primarily attributable to the Mettiki and Hamilton mining complexes. See Note 2 – Summary of Significant Accounting Policies for more information on our accounting policy for inventories. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 7. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: December 31, 2021 2020 (in thousands) Mining equipment and processing facilities $ 1,896,470 $ 1,896,324 Land and coal mineral rights 458,440 454,310 Oil & gas mineral interests 647,864 616,904 Buildings, office equipment, improvements and other miscellaneous equipment 282,902 279,938 Construction, mine development and other projects in progress 44,217 25,799 Mine development costs 278,454 280,815 Property, plant and equipment, at cost 3,608,347 3,554,090 Less accumulated depreciation, depletion and amortization (1,909,669) (1,753,845) Total property, plant and equipment, net $ 1,698,678 $ 1,800,245 Depreciation, depletion and amortization expense related to property, plant and equipment was $256.9 million, $297.0 million and $312.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. At December 31, 2021 and 2020, land and coal mineral rights above include $37.4 million and $37.5 million, respectively, of carrying value associated with coal mineral reserves and resources attributable to properties where we or a third party to which we lease coal mineral reserves and resources are not currently engaged in mining operations or leasing to third parties, and therefore, the coal mineral reserves are not currently being depleted. We believe that the carrying value of these coal mineral reserves will be recovered. At December 31, 2021 and 2020, our oil & gas mineral interests noted in the table above includes the carrying value of our unproved oil & gas mineral interests totaling $355.1 million and $340.5 million, respectively. As discussed in Note 2 – Summary of Significant Accounting Policies, we generally do not record depletion expense for our unproved oil & gas mineral interests; however, we do review for impairment as needed throughout the year. During 2021, we did not incur material mine development costs. During 2020, we incurred $13.1 million in mine development costs, primarily related to the development of our Excel Mine No. 5 at our MC Mining complex. All past capitalized mine development costs are associated with other mines that shifted to the production phase in past years and we are amortizing these costs accordingly. We believe that the carrying value of the past development costs will be recovered. See Note 2 – Summary of Significant Accounting Policies for more information on our accounting policy for property, plant and equipment. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2021 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 8. LONG-TERM DEBT Long-term debt consists of the following: Unamortized Discount and Principal Debt Issuance Costs December 31, December 31, 2021 2020 2021 2020 (in thousands) Revolving credit facility $ — $ 87,500 $ (5,019) $ (7,196) Senior notes 400,000 400,000 (3,048) (3,964) Securitization facility — 55,900 — — May 2019 equipment financing 1,503 4,956 — — November 2019 equipment financing 31,972 42,367 — — June 2020 equipment financing 9,605 13,057 — — 443,080 603,780 (8,067) (11,160) Less current maturities (16,071) (73,199) — — Total long-term debt $ 427,009 $ 530,581 $ (8,067) $ (11,160) Credit Facility. The Credit Agreement is guaranteed by certain of our Intermediate Partnership's material direct and indirect subsidiaries (the "Restricted Subsidiaries") and is secured by substantially all of the assets of the Restricted Subsidiaries. The Credit Agreement is also guaranteed by Alliance Minerals but the oil and gas minerals assets of Alliance Minerals and its direct and indirect subsidiaries (collectively with Alliance Minerals, the "Unrestricted Subsidiaries") are not collateral under the Credit Agreement. Borrowings under the Revolving Credit Facility bear interest, at our option, 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 2.45% as of December 31, 2021. At December 31, 2021, we had $44.1 million of letters of credit outstanding with $415.4 million available for borrowing under the Revolving Credit Facility. We 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 the Intermediate Partnership and its Restricted Subsidiaries including, among other things, restrictions on incurrence of additional indebtedness and liens, sale of assets, investments, mergers and consolidations and transactions with affiliates, including transactions with Unrestricted Subsidiaries. In each case, these restrictions are subject to various exceptions. In addition, the payment of cash distributions is restricted if such payment would result in a fixed charge coverage ratio of less than 1.0 to 1.0 (as defined in the Credit Agreement) for the four most recently ended fiscal quarters. 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, (b) a cash flow to interest expense ratio of not less than 3.0 to 1.0 and (c) a first lien debt to cash flow ratio of not more than 1.5 to 1.0, in each case, during the four most recently ended fiscal quarters. The debt to cash flow ratio, cash flow to interest expense ratio and first lien debt to cash flow ratio were 0.95 to 1.0, 11.91 to 1.0 and 0.10 to 1.0, respectively, for the trailing twelve months ended December 31, 2021. We remained in compliance with the covenants of the Credit Agreement as of December 31, 2021 and anticipate remaining in compliance with the covenants. Net restricted assets, as defined by the Securities and Exchange Commission, refers to the amount of our consolidated subsidiaries’ net assets for which the ability to transfer funds to ARLP in the form of cash dividends, loans, advances, or transfers is restricted. As a result of the restrictions contained in the Credit Agreement and our current compliance ratios, the amount of our net restricted assets at December 31, 2021 was $372.0 million. Senior Notes. Accounts Receivable Securitization May 2019 Equipment Financing. November 2019 Equipment Financing. June 2020 Equipment Financing. Other. Aggregate maturities of long-term debt are payable as follows: Year Ended December 31, (in thousands) 2022 $ 16,071 2023 24,970 2024 2,039 2025 400,000 $ 443,080 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
LEASES | |
LEASES | 9. LEASES The components of lease expense were as follows: December 31, 2021 2020 2019 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 597 $ 704 $ 14,608 Interest on lease liabilities 147 377 2,085 Operating lease cost 2,404 3,873 9,169 Short-term lease cost 200 84 464 Variable lease cost 1,306 1,375 1,360 Total lease cost $ 4,654 $ 6,413 $ 27,686 Rental expense was $3.3 million, $5.2 million and $11.0 million for the years ended December 31, 2021, 2020 and 2019 respectively. Supplemental cash flow information related to leases was as follows: December 31, 2021 2020 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,367 $ 3,870 $ 9,124 Operating cash flows for finance leases $ 147 $ 377 $ 891 Financing cash flows for finance leases $ 766 $ 8,368 $ 46,725 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 189 $ 278 $ 25,593 Supplemental balance sheet information related to leases was as follows: December 31, 2021 2020 (in thousands) Finance leases: Property and equipment finance lease assets, gross $ 5,485 $ 5,485 Accumulated depreciation (4,464) (3,867) Property and equipment finance lease assets, net $ 1,021 $ 1,618 December 31, 2021 2020 Weighted average remaining lease term Operating leases 15.5 years 13.4 years Finance leases 3.5 years 3.9 years Weighted average discount rate Operating leases 6.0 % 6.0 % Finance leases 7.4 % 8.0 % Maturities of lease liabilities as of December 31, 2021 were as follows: Operating leases Finance leases (in thousands) 2022 $ 2,257 $ 912 2023 2,073 139 2024 1,853 139 2025 1,539 139 2026 1,088 140 Thereafter 13,284 140 Total lease payments 22,094 1,609 Less imputed interest (7,908) (151) Total $ 14,186 $ 1,458 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 10. FAIR VALUE MEASUREMENTS The following table summarizes our fair value measurements within the hierarchy not included elsewhere in these notes: December 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Long-term debt $ — $ 457,758 $ — $ — $ 518,317 $ — Total $ — $ 457,758 $ — $ — $ 518,317 $ — See Note 2 – Summary of Significant Accounting Policies – Fair Value Measurements for more information regarding fair value hierarchy levels. 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. |
PARTNERS' CAPITAL
PARTNERS' CAPITAL | 12 Months Ended |
Dec. 31, 2021 | |
PARTNERS' CAPITAL | |
PARTNERS' CAPITAL | 11. PARTNERS' CAPITAL Distributions Our available cash that is not used for unit repurchases may, at the discretion of our general partner, be distributed within 45 days after the end of each quarter to unitholders of record. Available cash is generally defined in the partnership agreement as all cash and cash equivalents on hand at the end of each quarter less reserves established by MGP in its reasonable discretion for future cash requirements. These reserves are retained to provide for the conduct of our business, the payment of debt principal and interest and to provide funds for future distributions. The following table summarizes the quarterly per unit distribution paid during each quarter of 2019 through 2021: Year Ended December 31, 2021 2020 2019 First Quarter $ — $ 0.400 $ 0.530 Second Quarter $ 0.100 $ — $ 0.535 Third Quarter $ 0.100 $ — $ 0.540 Fourth Quarter $ 0.200 $ — $ 0.540 On January 28, 2022, we declared a quarterly distribution of $0.25 per unit, totaling approximately $31.8 million, on all our common units outstanding, which was paid on February 14, 2022, to all unitholders of record on February 7, 2022. Unit Repurchase Program In May 2018, the board of directors of our managing general partner ("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. No unit repurchases were made during the year ended December 31, 2021. Since inception of the unit repurchase program, we have repurchased and retired 5,460,639 units at an average unit price of $17.12 for an aggregate purchase price of $93.5 million. Other The noncontrolling interest in our consolidated balance sheets represents Bluegrass Minerals' ownership interest in Cavalier Minerals. Our accumulated other comprehensive loss consists of unrecognized actuarial gains and losses as well as unrecognized prior service costs related to our pension and pneumoconiosis benefits. See Note 12 – Variable Interest Entities, Note 16 –Employee Benefit Plans and Note 20 – Accrued Workers' Compensation and Pneumoconiosis Benefits for further information. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2021 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 12. VARIABLE INTEREST ENTITIES Cavalier Minerals On November 10, 2014, our subsidiary, Alliance Minerals, and 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 owns a 96% member interest in Cavalier Minerals, and Bluegrass Minerals owns a 4% member 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. To date, there has been no profits interest distribution. Bluegrass Minerals was Cavalier Minerals' managing member prior to the AllDale Acquisition (see Note 3 – Acquisitions). In conjunction with the AllDale 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 109,994 4,582 We have concluded that Cavalier Minerals is a 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 consolidated balance sheets. In addition, earnings attributable to Bluegrass Minerals are recognized as noncontrolling interest in our consolidated statements of operations. AllDale III In February 2017, Alliance Minerals committed to directly invest $30.0 million in 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 is 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. 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. See Note 13 – Investments for more information. See Note 2 – Summary of Significant Accounting Policies for more information on our accounting policy for variable interest entities. |
INVESTMENT
INVESTMENT | 12 Months Ended |
Dec. 31, 2021 | |
INVESTMENT | |
INVESTMENT | 13. INVESTMENTS AllDale III As discussed in Note 12 – 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: Year Ended December 31, 2021 2020 2019 (in thousands) Beginning balance $ 27,268 $ 28,529 $ 28,974 Equity method investment income 2,130 907 2,203 Distributions received (3,073) (1,895) (2,648) Other — (273) — Ending balance $ 26,325 $ 27,268 $ 28,529 Kodiak On July 19, 2017, Alliance Minerals purchased $100 million of Series A-1 Preferred Interests from Kodiak, a privately-held company providing large-scale, high-utilization gas compression assets to customers operating primarily in the Permian Basin. This structured investment provided us with a quarterly cash or payment-in-kind return. 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 ownership interests in Kodiak. Prior to the redemption, we accounted for our ownership interests in Kodiak as equity securities without readily determinable fair values. See Note 2 – Summary of Significant Accounting Policies for more information on our accounting policy for investments. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 14. REVENUE FROM CONTRACTS WITH CUSTOMERS The following table illustrates the disaggregation of our revenues by type, including a reconciliation to our segment presentation as presented in Note 24 – Segment Information. Coal Operations Royalties Other, Illinois Corporate and Basin Appalachia Oil & Gas Coal Elimination Consolidated (in thousands) Year Ended December 31, 2021 Coal sales $ 873,930 $ 512,993 $ — $ — $ — $ 1,386,923 Oil & gas royalties — — 74,988 — — 74,988 Coal royalties — — — 51,402 (51,402) — Transportation revenues 41,001 28,606 — — — 69,607 Other revenues 4,666 3,940 2,197 69 27,586 38,458 Total revenues $ 919,597 $ 545,539 $ 77,185 $ 51,471 $ (23,816) $ 1,569,976 Year Ended December 31, 2020 Coal sales $ 755,208 $ 477,064 $ — $ — $ — $ 1,232,272 Oil & gas royalties — — 42,912 — — 42,912 Coal royalties — — — 42,112 (42,112) — Transportation revenues 12,817 8,312 — — — 21,129 Other revenues 1,932 14,954 229 105 14,596 31,816 Total revenues $ 769,957 $ 500,330 $ 43,141 $ 42,217 $ (27,516) $ 1,328,129 Year Ended December 31, 2019 Coal sales $ 1,128,588 $ 628,406 $ — $ — $ 5,448 $ 1,762,442 Oil & gas royalties — — 51,735 — — 51,735 Coal royalties — — — 57,737 (57,737) — Transportation revenues 94,686 4,817 — — — 99,503 Other revenues 13,017 11,166 1,301 23 22,533 48,040 Total revenues $ 1,236,291 $ 644,389 $ 53,036 $ 57,760 $ (29,756) $ 1,961,720 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 December 31, 2021 and disaggregated by segment and contract duration. 2025 and 2022 2023 2024 Thereafter Total (in thousands) Illinois Basin Coal Operations coal revenues $ 913,305 $ 321,079 $ 183,189 $ 39,789 $ 1,457,362 Appalachia Coal Operations coal revenues 463,334 70,595 49,436 — 583,365 Total coal revenues (1) $ 1,376,639 $ 391,674 $ 232,625 $ 39,789 $ 2,040,727 (1) Coal revenues generally consists of consolidated revenues excluding our Oil & Gas Royalties segment as well as intercompany revenues from our Coal Royalties segment. |
EARNINGS PER LIMITED PARTNER UN
EARNINGS PER LIMITED PARTNER UNIT | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER LIMITED PARTNER UNIT | |
EARNINGS PER LIMITED PARTNER UNIT | 15. EARNINGS PER LIMITED PARTNER UNIT We utilize the two-class method in calculating basic and diluted earnings per limited partner unit ("EPU"). Net income attributable to ARLP is allocated to limited partners and participating securities under deferred compensation plans, which include rights to nonforfeitable distributions or distribution equivalents. Net losses attributable to ARLP are allocated to limited partners but not to participating securities. Our participating securities are outstanding restricted unit awards under our LTIP and phantom units in notional accounts under our SERP and the Directors' Deferred Compensation Plan. The following is a reconciliation of net income (loss) attributable to ARLP used for calculating basic and diluted earnings per unit and the weighted-average units used in computing EPU. Year Ended December 31, 2021 2020 2019 (in thousands, except per unit data) Net income (loss) attributable to ARLP $ 178,157 $ (129,220) $ 399,414 Less: Distributions to participating securities (2,334) — (4,254) Undistributed earnings attributable to participating securities (2,403) — (2,237) Net income (loss) attributable to ARLP available to limited partners $ 173,420 $ (129,220) $ 392,923 Weighted-average limited partner units outstanding – basic and diluted 127,195 127,165 128,117 Earnings per limited partner unit - basic and diluted (1) $ 1.36 $ (1.02) $ 3.07 (1) 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. For the years ended December 31, 2021, 2020 and 2019, the combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 1,967,672 , 773,664 and 1,284,013 , respectively, were considered anti-dilutive under the treasury stock method. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2021 | |
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS | |
EMPLOYEE BENEFIT PLANS | 16. EMPLOYEE BENEFIT PLANS Defined Contribution Plans Defined Benefit Plan The following sets forth changes in benefit obligations and plan assets for the years ended December 31, 2021 and 2020 and the funded status of the Pension Plan reconciled with the amounts reported in our consolidated financial statements: December 31, 2021 2020 (dollars in thousands) Change in benefit obligations: Benefit obligations at beginning of year $ 147,934 $ 136,425 Interest cost 3,438 4,185 Actuarial loss (gain) (6,406) 12,396 Benefits paid (5,400) (5,072) Benefit obligations at end of year 139,566 147,934 Change in plan assets: Fair value of plan assets at beginning of year 100,969 91,567 Employer contribution 3,312 1,739 Actual return on plan assets 15,095 12,735 Benefits paid (5,400) (5,072) Fair value of plan assets at end of year 113,976 100,969 Funded status at the end of year $ (25,590) $ (46,965) Amounts recognized in balance sheet: Non-current liability $ (25,590) $ (46,965) Amounts recognized in accumulated other comprehensive income consists of: Prior service cost $ (568) $ (754) Net actuarial loss (27,271) (46,519) $ (27,839) $ (47,273) Weighted-average assumption to determine benefit obligations as of December 31, Discount rate 2.73% 2.37% Weighted-average assumptions used to determine net periodic benefit cost for the year ended December 31, Discount rate 2.37% 3.15% Expected return on plan assets 6.50% 6.50% The actuarial gain component of the change in benefit obligations in 2021 was primarily attributable to an increase in the discount rate compared to December 31, 2020. The actuarial loss component of the change in benefit obligations in 2020 was primarily attributable to a decrease in the discount rate compared to December 31, 2019, offset in part by updated mortality tables. The expected long-term rate of return used to determine our pension liability is based on a 1.5% active management premium in addition to an asset allocation assumption of: Asset allocation As of December 31, 2021 assumption Equity securities 62% Fixed income securities 33% Real estate 5% 100% The actual return on plan assets was 15.1% and 14.2% for the years ended December 31, 2021 and 2020, respectively. Year Ended December 31, 2021 2020 2019 (in thousands) Components of net periodic benefit cost: Interest cost $ 3,438 $ 4,185 $ 4,864 Expected return on plan assets (6,580) (5,861) (4,932) Amortization of prior service cost 186 186 186 Amortization of net loss 4,327 4,128 3,922 Net periodic benefit cost (1) $ 1,371 $ 2,638 $ 4,040 (1) Nonservice components of net periodic benefit cost are included in the Other income (expense) line item within our consolidated statements of income. Year Ended December 31, 2021 2020 (in thousands) Other changes in plan assets and benefit obligation recognized in accumulated other comprehensive loss: Net actuarial gain (loss) $ 14,921 $ (5,522) Reversal of amortization item: Prior service cost 186 186 Net actuarial loss 4,327 4,128 Total recognized in accumulated other comprehensive loss 19,434 (1,208) Net periodic benefit cost (1,371) (2,638) Total recognized in net periodic benefit cost and accumulated other comprehensive loss $ 18,063 $ (3,846) Estimated future benefit payments as of December 31, 2021 are as follows: Year Ended December 31, (in thousands) 2022 $ 5,938 2023 6,190 2024 6,407 2025 6,591 2026 6,733 2027-2031 34,859 $ 66,718 As a result of certain pension plan contribution relief provided by the American Rescue Plan Act enacted in March 2021, we do not expect to make contributions to the Pension Plan during 2022. The Compensation Committee has appointed an investment manager with full investment authority with respect to Pension Plan investments subject to investment guidelines and compliance with Employee Retirement Income Security Act of 1974 or other applicable laws. The investment manager employs a series of asset allocation strategy phases to glide the portfolio risk commensurate with both plan characteristics and market conditions. The objective of the allocation policy is to reach and maintain fully funded status. The total portfolio allocation will be adjusted as the funded ratio of the Pension Plan changes and market conditions warrant. Total account performance is reviewed at least annually, using a dynamic benchmark approach to track investment performance. General asset allocation guidelines at December 31, 2021 are as follows: Percentage of Total Portfolio Minimum Target Maximum Equity securities 45% 62% 80% Fixed income securities 10% 33% 55% Real estate 0% 5% 10% Equity securities include domestic equity securities, developed international securities, emerging markets equity securities and real estate investment trust. Fixed income securities include domestic and international investment grade fixed income securities, high yield securities and emerging markets fixed income securities. Fixed income futures may also be utilized within the fixed income securities asset allocation. The following information discloses the fair values of our Pension Plan assets by asset category: December 31, 2021 2020 (in thousands) Cash and cash equivalents (a) $ 4,426 $ 3,888 Commingled investment funds measured at net asset value (b): Equities - Global 24,868 17,549 Equities - United States 41,140 31,835 Equities - United States futures (2,055) (2,616) Equities - International developed markets 16,382 8,920 Equities - International developed markets futures (16,260) (4,921) Equities - International emerging markets (3,363) 6,600 Equities - International emerging markets futures 7,024 (975) Fixed income - Investment grade 27,095 25,703 Fixed income - High yield 177 10,056 Fixed income - Emerging markets — 2,664 Fixed income - Futures (689) (1,265) Real estate 15,231 3,531 Total $ 113,976 $ 100,969 (a) Cash and cash equivalents represents a Level 1 fair value measurement. See Note 2 – Summary of Significant Accounting Policies – Fair Value Measurements for more information regarding the definitions of fair value hierarchy levels. (b) Investments measured at fair value using the net asset value per share (or its equivalent) have not been classified within the fair value hierarchy. The fair values of all commingled investment funds are determined based on the net asset values per unit of each of the funds. The net asset values per unit represent the aggregate value of the fund's assets at fair value less liabilities, divided by the number of units outstanding. See Note 2 – Summary of Significant Accounting Policies for more information on our accounting policy for pension benefits. |
COMMON UNIT-BASED COMPENSATION
COMMON UNIT-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2021 | |
COMMON UNIT-BASED COMPENSATION PLANS | |
COMMON UNIT-BASED COMPENSATION PLANS | 17. COMMON UNIT-BASED COMPENSATION PLANS Long-Term Incentive Plan We maintain the LTIP for certain employees and officers of MGP and its affiliates who perform services for us. As part of our LTIP, unit awards of non-vested "phantom" or notional units, also referred to as "restricted units", may be granted which upon satisfaction of time and performance-based vesting requirements, entitle the LTIP participant to receive ARLP common units. Certain awards may also contain a minimum-value guarantee payable in ARLP common units or cash that would be paid regardless of whether or not the awards vest, as long as service requirements are met. Annual grant levels, vesting provisions and minimum-value guarantees of restricted units for designated participants are recommended by Mr. Craft, subject to review and approval of the Compensation Committee. Vesting of all restricted units outstanding is subject to the satisfaction of certain financial tests. If it is not probable the financial tests for a particular grant of restricted units will be met, any previously expensed amounts for that grant are reversed and no future expense will be recognized for that grant. Assuming the financial tests are met, grants of restricted units issued to LTIP participants are generally expected to cliff vest on January 1st of the third year following issuance of the grants. We expect to settle restricted unit grants by delivery of newly-issued ARLP common units, except for the portion of the grants that will satisfy employee tax withholding obligations of LTIP participants. We account for forfeitures of non-vested LTIP restricted unit grants as they occur. As provided under the DERs provisions of the LTIP and the terms of the LTIP restricted unit awards, all non-vested restricted units 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. If it is not probable the financial tests for a particular grant of restricted units will be met, any previously paid DER amounts for that grant are reversed from Partners’ Capital and recorded as compensation expense and any future DERs, for that grant, if any, will be recognized as compensation expense when paid. A summary of non-vested LTIP grants of restricted units 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 $ 17.18 $ 31,699 Granted 682,155 18.63 Vested (1) (885,381) 12.38 Forfeited (21,476) 20.84 Non-vested grants at December 31, 2019 1,603,378 20.39 17,349 Granted (2) 1,430,489 5.02 Vested (3) (919,524) 21.70 Grants canceled (4) (675,302) 18.62 Forfeited (8,552) 20.16 Non-vested grants at December 31, 2020 1,430,489 5.02 6,409 Granted (5) 1,818,190 6.03 Forfeited (118,204) 5.48 Non-vested grants at December 31, 2021 3,130,475 5.59 39,569 (1) During the year ended December 31, 2019, we issued 596,650 unrestricted common units to LTIP participants. The remaining vested units were settled in cash to satisfy tax withholding obligations of the LTIP participants. (2) In December 2020, we modified the vesting requirements for certain restricted units that we granted in February 2020 which were determined to be improbable of vesting under the original vesting requirements (the "2020 Grants"). The new vesting requirements make it probable the modified restricted units will vest. Also in December 2020, an additional 578,114 restricted units under these modified vesting requirements were granted. The grant date fair value reflects the modification date fair value for those awards that were modified. (3) In February 2020, we issued 279,622 unrestricted common units to LTIP participants as a result of satisfying the vesting requirements for 424,486 restricted units that were granted in 2017. The remaining vested units were settled in cash to satisfy tax withholding obligations of the LTIP participants. In December 2020, we accelerated the vesting requirements for 495,038 restricted units that were granted in 2018 (the "2018 Grants") and settled these restricted units in cash. (4) In December 2020, 675,302 restricted units that were granted in 2019 (the "2019 Grants") were canceled since it was determined that the vesting requirements for these restricted units were not probable of being satisfied. (5) In April 2021, we granted 921,430 restricted units and 896,760 restricted units that have minimum-value guarantees of $2.53 per unit and $3.79 per unit, respectively, regardless of whether or not the awards vest. For the years ended December 31, 2021, 2020 and 2019, our LTIP expense for grants of restricted units was $5.4 million, $8.1 million and $10.4 million, respectively. LTIP expense for grants of restricted units for the year ended December 31, 2020 includes the impact of the reversal of the 2019 Grants, the modification of the 2020 Grants and incremental compensation cost associated with the cash settlement of the 2018 Grants. The cash settlement of the 2018 Grants was the first time we have settled restricted units in cash and we currently do not expect to do so again in the future. The cash settlement of the 2018 Grants resulted in $5.4 million in incremental compensation cost. The 2019 Grants were determined to be not probable of vesting therefore $4.8 million of cumulative previously recognized expense was reversed in 2020, offset in part by related DERs for the 2019 Grants previously recorded to equity and then expensed in 2020. The 2020 Grants were determined to be improbable of vesting therefore the Compensation Committee modified the awards to change the vesting requirement, which made the grants probable of vesting, and granted additional restricted units under these modified vesting requirements as previously discussed. As a result, the grant date fair value of the modified awards was changed to reflect the modification date fair value of the awards resulting in a net reduction in LTIP expense of $1.0 million for the year ended December 31, 2020. The total obligation associated with LTIP grants of restricted units as of December 31, 2021 and 2020 was $6.7 million and $1.3 million, respectively, and is included in the partners' capital Limited partners-common unitholders On January 26, 2022, the Compensation Committee authorized additional grants of 694,919 restricted units, of which 687,719 units were granted. These restricted units have minimum-value guarantees of either $9.62 or $6.41 per unit, regardless of whether or not the awards vest. 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 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 $ 27.34 $ 11,025 Granted 111,012 14.50 Issued (1) (115,484) 25.20 Phantom units outstanding as of December 31, 2019 631,365 25.48 6,831 Granted 129,265 5.25 Phantom units outstanding as of December 31, 2020 760,630 22.04 3,408 Granted 46,638 9.45 Issued (1) (138,570) 25.86 Phantom units outstanding as of December 31, 2021 668,698 20.13 8,452 (1) During the years ended December 31, 2021 and 2019, we issued ARLP common units that we purchased on the open market of 102,962 and 115,484 , respectively, to participants under the SERP and Directors' Deferred Compensation Plan . Units issued in 2021 were net of units settled in cash to satisfy tax withholding obligations. Total SERP and Directors' Deferred Compensation Plan expense was $0.4 million, $0.7 million and $1.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021 and 2020, the total obligation associated with the SERP and Directors' Deferred Compensation Plan was $13.5 million and $16.8 million, respectively, and is included in the partners' capital Limited partners-common unitholders See Note 2 – Summary of Significant Accounting Policies for more information on our accounting policy for unit-based compensation. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
SUPPLEMENTAL CASH FLOW INFORMATION | 18. SUPPLEMENTAL CASH FLOW INFORMATION Year Ended December 31, 2021 2020 2019 (in thousands) Cash Paid For: Interest $ 36,402 $ 44,226 $ 43,093 Income taxes $ 11 $ 12 $ — Non-Cash Activity: Accounts payable for purchase of property, plant and equipment $ 8,325 $ 5,731 $ 14,504 Right-of-use assets acquired by operating lease $ 189 278 25,593 Market value of common units issued under deferred compensation plans before tax withholding requirements $ 1,082 $ 3,837 $ 17,415 |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2021 | |
ASSET RETIREMENT OBLIGATIONS | |
ASSET RETIREMENT OBLIGATIONS | 19. ASSET RETIREMENT OBLIGATIONS The majority of our operations are governed by various state statutes and the Federal Surface Mining Control and Reclamation Act of 1977, which establish reclamation and mine closing standards. These regulations require, among other things, restoration of property in accordance with specified standards and an approved reclamation plan. The following table presents the activity affecting the asset retirement and mine closing liability: Year Ended December 31, 2021 2020 (in thousands) Beginning balance $ 127,898 $ 137,514 Accretion expense 3,688 4,033 Payments (1,383) (1,769) Allocation of liability associated with acquisitions, mine development and change in assumptions 896 (11,880) Ending balance $ 131,099 $ 127,898 For the year ended December 31, 2021, the allocation of liability associated with acquisition, mine development and change in assumptions was immaterial. For the year ended December 31, 2020, the allocation of liability associated with acquisition, mine development and change in assumptions was a net decrease of $11.9 million. This net decrease was attributable to lower cost assumptions and completion of certain reclamation obligations across all operations, permit modifications and extension of projected mine life estimates at certain mines, partially offset by acquisition of property with existing reclamation liabilities. The impact of discounting our estimated cash flows resulted in reducing the accrual for asset retirement obligations by $98.3 million and $102.1 million at December 31, 2021 and 2020, respectively. Estimated payments of asset retirement obligations as of December 31, 2021 are as follows: Year Ended December 31, (in thousands) 2022 $ 7,582 2023 2,232 2024 558 2025 3,788 2026 7,256 Thereafter 208,021 Aggregate undiscounted asset retirement obligations 229,437 Effect of discounting (98,338) Total asset retirement obligations 131,099 Less: current portion (7,582) Non-current asset retirement obligations $ 123,517 Federal and state laws require bonds to secure our obligations to reclaim lands used for mining and are typically renewable on a yearly basis. As of December 31, 2021 and 2020, we had approximately $173.9 million and $171.1 million, respectively, in surety bonds outstanding to secure the performance of our reclamation obligations. See Note 2 – Summary of Significant Accounting Policies for more information on our accounting policy for asset retirement obligations. |
ACCRUED WORKERS' COMPENSATION A
ACCRUED WORKERS' COMPENSATION AND PNEUMOCONIOSIS BENEFITS | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED WORKERS' COMPENSATION AND PNEUMOCONIOSIS BENEFITS | |
ACCRUED WORKERS' COMPENSATION AND PNEUMOCONIOSIS BENEFITS | 20. ACCRUED WORKERS' COMPENSATION AND PNEUMOCONIOSIS BENEFITS We provide income replacement and medical treatment for work-related traumatic injury claims as required by applicable state laws. Workers' compensation laws also compensate survivors of workers who suffer employment related deaths. 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 benefits for black lung disease (or pneumoconiosis) to eligible employees and former employees and their dependents. Both pneumoconiosis and traumatic claims are covered through our self-insured programs. The following is a reconciliation of the changes in workers' compensation liability (including current and long-term liability balances): December 31, 2021 2020 (in thousands) Beginning balance $ 54,739 $ 53,384 Accruals increase 5,168 5,146 Payments (10,725) (8,482) Interest accretion 926 1,278 Valuation loss 3,340 3,413 Ending balance $ 53,448 $ 54,739 The discount rate used to calculate the estimated present value of future obligations for workers' compensation was 2.41% and 1.95% at December 31, 2021 and 2020, respectively. The valuation loss in 2021 was primarily attributable to unfavorable changes in claims development partially offset by an increase in the discount rate used to calculate the estimated present value of future obligations. The 2020 valuation loss was primarily attributable to a decrease in the discount rate used to calculate the estimated present value of future obligations as well as unfavorable changes in claims development. As of December 31, 2021 and 2020, we had $100.4 million and $95.2 million, respectively, in surety bonds and letters of credit outstanding to secure workers' compensation obligations. We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for the particular claim year have been met. 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 December 31, 2021 and 2020 are $5.7 million and $7.1 million, respectively. Our receivables are included in Other long-term assets The following is a reconciliation of the changes in pneumoconiosis benefit obligations: December 31, 2021 2020 (in thousands) Benefit obligations at beginning of year $ 108,496 $ 97,683 Service cost 4,021 3,526 Interest cost 2,545 2,998 Actuarial loss 161 7,787 Benefits and expenses paid (3,907) (3,498) Benefit obligations at end of year $ 111,316 $ 108,496 The following is a reconciliation of the changes in the pneumoconiosis benefit obligation recognized in accumulated other comprehensive loss: Year Ended December 31, 2021 2020 2019 (in thousands) Net actuarial loss $ (161) $ (7,787) $ (23,298) Reversal of amortization item: Net actuarial loss (gain) 4,172 (686) (4,582) Total recognized in accumulated other comprehensive loss $ 4,011 $ (8,473) $ (27,880) The discount rate used to calculate the estimated present value of future obligations for pneumoconiosis benefits was 2.73%, 2.38% and 3.12% at December 31, 2021, 2020 and 2019, respectively. Year Ended December 31, 2021 2020 2019 (in thousands) Amount recognized in accumulated other comprehensive loss consists of: Net actuarial loss $ 36,388 $ 40,399 $ 31,927 The actuarial loss component of the change in benefit obligations in 2021 was primarily attributable to unfavorable assumption changes regarding future medical and legal expense levels. These components were offset in part by a) an increase in the discount rate used to calculate the estimated present value of the future obligations and b) favorable black lung claims experience and other demographic changes in the at-risk population. The actuarial loss component of the change in benefit obligations in 2020 was primarily attributable to a) a decrease in the discount rate used to calculate the estimated present value of the future obligations and b) an increase in the assumptions regarding future medical benefits and legal expenses. These components were partially offset in part by favorable demographic changes in the at-risk population. Summarized below is information about the amounts recognized in the accompanying consolidated balance sheets for pneumoconiosis and workers' compensation benefits: December 31, 2021 2020 (in thousands) Workers’ compensation claims $ 53,448 $ 54,739 Pneumoconiosis benefit claims 111,316 108,496 Total obligations 164,764 163,235 Less current portion (12,293) (10,646) Non-current obligations $ 152,471 $ 152,589 Both the pneumoconiosis benefit and workers' compensation obligations were unfunded at December 31, 2021 and 2020. The pneumoconiosis benefit and workers' compensation expense consists of the following components: Year Ended December 31, 2021 2020 2019 (in thousands) Black lung benefits: Service cost $ 4,021 $ 3,526 $ 2,593 Interest cost (1) 2,545 2,998 3,044 Net amortization (1) 4,172 (686) (4,582) Total pneumoconiosis expense 10,738 5,838 1,055 Workers' compensation expense 8,339 12,305 17,541 Net periodic benefit cost $ 19,077 $ 18,143 $ 18,596 ________________________________________ (1) Interest cost and net amortization is included in the Other income (expense) line item within our consolidated statements of income ( see Note 2 – Summary of Significant Accounting Policies). See Note 2 – Summary of Significant Accounting Policies for more information on our accounting policy for workers' compensation and pneumoconiosis benefits. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED-PARTY TRANSACTIONS | |
RELATED-PARTY TRANSACTIONS | 21. RELATED-PARTY TRANSACTIONS We have continuing related-party transactions with MGP and its affiliates. The Board of Directors and its conflicts committee ("Conflicts Committee") review our related-party transactions that involve a potential conflict of interest between our general partner or its affiliates and ARLP or its subsidiaries or any other partner of ARLP to determine that such transactions are fair and reasonable to ARLP. As a result of these reviews, the Board of Directors and the Conflicts Committee approved each of the transactions described below that had such potential conflict of interest as fair and reasonable to ARLP. Line of Credit On February 19, 2021, we entered into a line of credit arrangement (the "Line of Credit") with a related party for $5.0 million. This Line of Credit was amended on November 4, 2021 to increase the total available under the Line of Credit to $5.5 million. The Line of Credit had a maturity date of February 28, 2023 and accrued interest at an annual rate of 3.5% payable quarterly. During the year ended December 31, 2021 we received proceeds and made payments Affiliate Coal Lease Agreements The following table summarizes advanced royalties outstanding and related payments and recoupments under our affiliate coal lease agreements: WKY CoalPlay Towhead Webster Henderson WKY Craft Foundations Coal Coal Coal CoalPlay Henderson Henderson Tunnel & Union Webster Henderson & Union Ridge Counties, KY County, KY County, KY Counties, KY Total Acquired Acquired Acquired Acquired Acquired 2005 December 2014 December 2014 December 2014 February 2015 (in thousands) As of January 1, 2019 $ — $ 14,077 $ — $ 10,086 $ 8,482 $ 32,645 Payments 4,500 3,597 2,568 2,521 2,131 15,317 Recoupment (3,000) (1,071) — — (107) (4,178) Unrecoupable — — (2,568) — — (2,568) As of December 31, 2019 1,500 16,603 — 12,607 10,506 41,216 Payments 3,000 3,597 2,568 2,522 2,132 13,819 Recoupment (3,000) (1,022) — — (56) (4,078) Unrecoupable — — (2,568) — — (2,568) As of December 31, 2020 1,500 19,178 — 15,129 12,582 48,389 Payments 3,000 3,597 2,568 2,521 2,131 13,817 Recoupment (3,000) (1,025) — — — (4,025) Unrecoupable — — (2,568) — — (2,568) As of December 31, 2021 $ 1,500 $ 21,750 $ — $ 17,650 $ 14,713 $ 55,613 Craft Foundations — one half WKY CoalPlay — minimum royalty payments of $2.1 million. All annual minimum royalty payments are recoupable from future earned royalties. Alliance Resource Properties also was granted an option to acquire the leased mineral reserves and resources at any time during a three-year period beginning in February 2018 for a purchase price that would provide WKY CoalPlay a 7.0% internal rate of return on its investment in these coal mineral reserves and resources taking into account payments previously made under the lease. These options expired in February 2021. In December 2014, WKY CoalPlay's subsidiaries, Towhead Coal Reserves, LLC and Henderson Coal Reserves, LLC entered into coal lease agreements with Alliance Resource Properties. The leases have initial terms of 20 years and provide for earned royalty payments of 4.0% of the coal sales price to both and annual minimum royalty payments of $3.6 million and $2.5 million, respectively. All annual minimum royalty payments for each agreement are recoupable from future earned royalties related to their respective agreements. Each agreement granted Alliance Resource Properties an option to acquire the leased coal mineral reserves and resources at any time during a three-year period beginning in December 2017 for a purchase price that would provide WKY CoalPlay a 7.0% internal rate of return on its investment in the coal mineral reserves and resources taking into account payments previously made under the leases. These options expired in December 2020. (See Note 12 – Variable Interest Entities). In December 2014, WKY CoalPlay's subsidiary, Webster Coal Reserves, LLC entered into a coal lease agreement with Alliance Resource Properties. The lease has an initial term of 7 years and provides for earned royalty payments of 4.0% of the coal sales price and annual minimum payments of $2.6 million. The agreement grants Alliance Resource Properties an option to acquire the leased coal mineral resources at any time during a three year period beginning in December 2017 for a purchase price that would provide WKY CoalPlay a 7.0% internal rate of return on its investment in the coal mineral resources taking into account payments previously made under the lease (See Note 12 – Variable Interest Entities). In the third quarter of 2019 it was determined that the balance of advanced royalties, the advance royalty payment in 2020 and 2021 may not be recouped as a result of the reduction of the Dotiki’s economic mine life determined in 2018 and the subsequent ceasing of production in the third quarter of 2019. We accrued the expected future advance payments and recognized the charge in Asset Impairment expense in the third quarter of 2019. See Note 4 – Long-Lived Asset Impairments for more information. Cavalier Minerals |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 22. COMMITMENTS AND CONTINGENCIES Commitments — Contractual Commitments — General Litigation — We also have various other lawsuits, claims and regulatory proceedings incidental to our business that are pending against the ARLP Partnership. We record an accrual for a potential loss related to these matters when, in management's opinion, such loss is 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 are different from management's current expectations and in amounts greater than our accruals, such matters could have a material adverse effect on our business and operations. Other |
CONCENTRATION OF CREDIT RISK AN
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS | 12 Months Ended |
Dec. 31, 2021 | |
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS | |
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS | 23. CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS The international coal market has been a part of our business with indirect sales to end-users in Europe, Africa, Asia, North America and South America. Our sales into the international coal market are considered exports and are made through brokered transactions. During the years ended December 31, 2021, 2020 and 2019, export tons represented approximately 12.5%, 3.3% and 17.9% of tons sold, respectively. Because title to our export shipments typically transfers to our brokerage customers at a point that does not necessarily reflect the end-usage point, we attribute export tons to the country with the end-usage point, if known. No individual country was attributed greater than 10% of total domestic and export tons sold during the years ended December 31, 2021, 2020 and 2019. We have significant long-term coal supply agreements, some of which contain prospective price adjustment provisions designed to reflect changes in market conditions, labor and other production costs and, in the infrequent circumstance when the coal is sold other than free on board the mine, changes in transportation rates. Our major customers are defined as those customers from which we derive at least ten percent of our total revenues, including transportation revenues. Total revenues from major customers are as follows: Year Ended December 31, Segment 2021 2020 2019 (in thousands) Customer A Illinois Basin $ 239,482 $ 197,379 $ 228,500 Customer B Appalachia — — 213,319 Customer C Illinois Basin — 157,271 — Customer D Illinois Basin/Appalachia — 137,785 — Trade accounts receivable from major customers totaled approximately $10.8 million and $32.0 million at December 31, 2021 and 2020, respectively. Our credit loss experience has historically been insignificant. Financial conditions of our customers could result in a material change to our credit loss expense in future periods. The coal supply agreements with Customer A expires in 2024. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 24. SEGMENT INFORMATION We operate in the United States as a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic and international utilities and industrial users as well as royalty income from oil & gas mineral interests. We aggregate multiple operating segments into four reportable segments, Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties. We also have an "all other" category referred to as Other, Corporate and Elimination. Our two coal operations 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 operations reportable segments include seven mining complexes operating in Illinois, Indiana, Kentucky, Maryland, Pennsylvania and West Virginia and a coal loading terminal in Indiana on the Ohio River. Our Oil & Gas Royalties reportable segment includes our oil & gas mineral interests which are located primarily in the Permian (Delaware and Midland), Anadarko (SCOOP/STACK) and Williston (Bakken) basins. The operations within our Oil & Gas Royalties reportable segment primarily include receiving royalties and lease bonuses for our oil & gas mineral interests. Our Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties, which are either (a) leased to our mining complexes or (b) near our coal mining operations but not yet leased. Beginning in the first quarter of 2021, we began to strategically view and manage our coal royalty activities separately from our coal operations since acquiring and managing a variety of royalty producing assets involve similar attributes. As a result, we restructured our reportable segments to better reflect this strategic view in how we manage our business and allocate resources. Prior periods have been recast to include Alliance Resource Properties within our new Coal Royalties reportable segment with offsetting recast adjustments primarily to our coal operations reportable segments and to a lesser extent, our Other, Corporate and Elimination category. Eliminations reported in Other, Corporate and Elimination were also recast to reflect intercompany royalty revenues and offsetting intercompany royalty expense resulting from our new Coal Royalties reportable segment. The Illinois Basin Coal Operations reportable segment includes currently operating mining complexes (a) the Gibson County Coal, LLC's ("Gibson") mining complex, which includes the Gibson South mine, (b) the Warrior Coal, LLC ("Warrior") mining complex, (c) the River View Coal, LLC ("River View") mining complex and (d) the Hamilton mining complex. The Illinois Basin Coal Operations reportable segment also includes our Mt. Vernon Transfer Terminal, LLC ("Mt. Vernon") coal loading terminal in Indiana which currently operates on the Ohio River. The Illinois Basin Coal Operations reportable segment also includes Mid-America Carbonates, LLC ("MAC") and other support services as well as non-operating mining complexes (a) Gibson North mine, which ceased production in the fourth quarter of 2019, (b) Webster County Coal, LLC's Dotiki mining complex, which ceased production in August 2019, (c) White County Coal, LLC's Pattiki mining complex, which ceased production in December 2016, (d) the Hopkins County Coal, LLC mining complex, which ceased production in April 2016, and (e) Sebree Mining, LLC's mining complex, which ceased production in November 2015. The Appalachia Coal Operations reportable segment includes currently operating mining complexes (a) the Mettiki mining complex, (b) the Tunnel Ridge mining complex and (c) the MC Mining, LLC ("MC Mining") mining complex. The Mettiki mining complex includes Mettiki Coal (WV), LLC's Mountain View mine and Mettiki Coal, LLC's preparation plant. The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by AR Midland and AllDale I & II and includes Alliance Minerals' equity interests in both AllDale III (Note 13 – Investments) and Cavalier Minerals. AR Midland acquired its mineral interest in the Wing Acquisition and Boulders Acquisition (Note 3 – Acquisitions). Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties that are (a) leased to certain of our mining complexes in both the Illinois Basin Coal Operations and Appalachia Coal Operations reportable segments or (b) located near our operations and external mining operations. Approximately two thirds of the coal sold by our Coal Operations' mines is leased from our Coal Royalties entities. Other, Corporate and Elimination includes marketing and administrative activities, Matrix Design Group, LLC and its subsidiaries ("Matrix Design"), Alliance Design Group, LLC ("Alliance Design") (collectively, Matrix Design and Alliance Design referred to as the "Matrix Group"), Pontiki Coal, LLC's workers' compensation and pneumoconiosis liabilities, Wildcat Insurance, which assists the ARLP Partnership with its insurance requirements, AROP Funding and Alliance Finance (both discussed in Note 8 – Long-Term Debt) and other miscellaneous activities. The eliminations included in Other, Corporate and Elimination primarily represent the intercompany coal royalty transactions described above between our Coal Royalties reportable segment and our coal operations' mines. Reportable segment results are presented below. Coal Operations Royalties Other, Illinois Corporate and Basin Appalachia Oil & Gas Coal Elimination Consolidated (in thousands) Year Ended December 31, 2021 Revenues - Outside $ 919,597 $ 545,539 $ 77,185 $ 69 $ 27,586 $ 1,569,976 Revenues - Intercompany — — — 51,402 (51,402) — Total revenues (1) 919,597 545,539 77,185 51,471 (23,816) 1,569,976 Segment Adjusted EBITDA Expense (2) 613,303 344,332 9,943 18,269 (33,198) 952,649 Segment Adjusted EBITDA (3) 265,292 172,601 68,774 33,202 9,383 549,252 Total assets 676,091 420,144 630,627 285,943 146,601 2,159,406 Capital expenditures (4) 60,166 47,577 — 45 15,196 122,984 Year Ended December 31, 2020 Revenues - Outside $ 769,957 $ 500,330 $ 43,141 $ 105 $ 14,596 $ 1,328,129 Revenues - Intercompany — — — 42,112 (42,112) — Total revenues (1) 769,957 500,330 43,141 42,217 (27,516) 1,328,129 Segment Adjusted EBITDA Expense (2) 543,264 320,656 4,106 18,249 (25,026) 861,249 Segment Adjusted EBITDA (3) 213,876 171,362 39,773 23,968 (2,490) 446,489 Total assets 738,315 440,815 613,916 288,525 84,445 2,166,016 Capital expenditures 48,636 70,960 — 12 1,493 121,101 Year Ended December 31, 2019 Revenues - Outside $ 1,219,601 $ 644,389 $ 53,036 $ 23 $ 44,671 $ 1,961,720 Revenues - Intercompany 16,690 — — 57,737 (74,427) — Total revenues (1) 1,236,291 644,389 53,036 57,760 (29,756) 1,961,720 Segment Adjusted EBITDA Expense (2) 791,795 424,387 7,811 21,445 (40,542) 1,204,896 Segment Adjusted EBITDA (3) 349,810 215,187 46,997 36,315 23,692 672,001 Total assets 1,092,188 489,378 643,213 292,436 69,479 2,586,694 Capital expenditures (4) 188,928 111,729 — 352 4,849 305,858 (1) Revenues included in the Other, Corporate and Elimination column are attributable to intercompany eliminations, which are primarily the coal royalties intercompany eliminations, outside revenues at the Matrix Group and other outside miscellaneous sales and revenue activities. (2) Segment Adjusted EBITDA Expense includes operating expenses, coal purchases and other income. Transportation expenses are excluded as transportation revenues are recognized in an amount equal to transportation expenses when title passes to the customer. The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to Operating expenses (excluding depreciation, depletion and amortization) Year Ended December 31, 2021 2020 2019 (in thousands) Segment Adjusted EBITDA Expense $ 952,649 $ 861,249 $ 1,204,896 Outside coal purchases (6,372) — (23,357) Other income (expense) (3,020) (1,593) 561 Operating expenses (excluding depreciation, depletion and amortization) $ 943,257 $ 859,656 $ 1,182,100 (3) Segment Adjusted EBITDA is defined as net income (loss) attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization, general and administrative expense, asset and goodwill impairments and acquisition gain. Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments. Consolidated Segment Adjusted EBITDA is reconciled to net income (loss) as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Consolidated Segment Adjusted EBITDA $ 549,252 $ 446,489 $ 672,001 General and administrative (70,160) (59,806) (72,997) Depreciation, depletion and amortization (261,377) (313,387) (309,075) Asset impairments — (24,977) (15,190) Goodwill impairment — (132,026) — Interest expense, net (39,141) (45,478) (45,496) Acquisition gain — — 177,043 Income tax (expense) benefit (417) (35) 211 Acquisition gain attributable to noncontrolling interest — — (7,083) Net income (loss) attributable to ARLP $ 178,157 $ (129,220) $ 399,414 Noncontrolling interest 598 169 7,512 Net income (loss) $ 178,755 $ (129,051) $ 406,926 . (4) Capital Expenditures shown exclude the AllDale Acquisition on January 3, 2019, the Wing Acquisition on August 2, 2019 and Boulders Acquisition on October 13, 2021 (Note 3 – Acquisitions) . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 25. SUBSEQUENT EVENTS Other than the events described in Notes 8, 11 and 17, there were no subsequent events. |
SCHEDULE I CONDENSED FINANCIAL
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2021 | |
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF REGISTRANT ALLIANCE RESOURCE PARTNERS, L.P. CONDENSED BALANCE SHEETS (PARENT) DECEMBER 31, 2021 AND 2020 (In thousands, except unit data) December 31, 2021 2020 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 2,173 $ 2,174 Total current assets 2,173 2,174 OTHER ASSETS: Investments in consolidated subsidiaries 1,277,110 1,146,491 Total other assets 1,277,110 1,146,491 TOTAL ASSETS $ 1,279,283 $ 1,148,665 LIABILITIES AND PARTNERS' CAPITAL CURRENT LIABILITIES: Accrued taxes other than income taxes $ 100 $ 100 Total current liabilities 100 100 Total liabilities 100 100 PARTNERS' CAPITAL: Limited Partners - Common Unitholders 127,195,219 units outstanding 1,279,183 1,148,565 TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 1,279,283 $ 1,148,665 See accompanying notes. CONDENSED STATEMENTS OF OPERATIONS (PARENT) FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019 (In thousands, except unit and per unit data) Year Ended December 31, 2021 2020 2019 EXPENSES: General and administrative $ — $ — $ 41 Total operating expenses — — 41 INCOME (LOSS) FROM OPERATIONS — — (41) Interest income — 24 34 Equity in earnings of consolidated subsidiaries 178,157 (129,244) 399,421 NET INCOME (LOSS) ATTRIBUTABLE TO ARLP $ 178,157 $ (129,220) $ 399,414 EARNINGS PER LIMITED PARTNER UNIT - BASIC AND DILUTED $ 1.36 $ (1.02) $ 3.07 WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING – BASIC AND DILUTED 127,195,219 127,164,659 128,116,670 See accompanying notes. CONDENSED STATEMENTS OF CASH FLOWS (PARENT) FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019 (In thousands) Year Ended December 31, 2021 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES: $ 52,157 $ 51,751 $ 278,308 CASH FLOWS FROM FINANCING ACTIVITIES: Distributions paid to Partners (52,158) (51,753) (278,425) Net cash used in financing activities (52,158) (51,753) (278,425) NET CHANGE IN CASH AND CASH EQUIVALENTS (1) (2) (117) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,174 2,176 2,293 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 2,173 $ 2,174 $ 2,176 See accompanying notes. NOTES TO FINANCIAL INFORMATION (PARENT) 1. BASIS OF PRESENTATION In these parent-company-only financial statements, our investment in consolidated subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries and reduced by distributions received from subsidiaries since the date of acquisition. These parent-company-only financial statements should be read in conjunction with our consolidated financial statements in "Item 8. Financial Statements and Supplementary Data" of this Annual Report on Form 10-K. 2. GUARANTEES As the parent of the Intermediate Partnership, we are a guarantor of both the Credit Agreement and Senior Notes discussed in "Item 8. Financial Statements and Supplementary Data—Note 8 – Long-Term Debt" of this Annual Report on Form 10-K. In addition to these guarantees, we have provided guarantees on surety indemnity agreements and financially guaranteed certain coal supply agreements. The duration of these guarantees varies. The maximum undiscounted potential future payment obligation for our guarantees of certain coal supply agreements as of December 31, 2021 is approximately $146.7 million as a result of elevated market prices. These guarantees provide for compensation to customers based on additional cost to the customer to replace any contracted tons that our subsidiaries fail to deliver. We do not expect to make any payments under these guarantees. 3. CASH DISTRIBUTIONS RECEIVED We received distributions of $52.2 million, $51.8 million and $278.4 million from our consolidated subsidiaries during the years ended December 31, 2021, 2020, and 2019, respectively. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Consolidation | Consolidation |
Variable Interest Entity ("VIE") | Variable Interest Entity ("VIE") To determine a VIE's primary beneficiary, we perform a qualitative assessment to determine which party, if any, has the power to direct activities of the VIE and the obligation to absorb losses and/or receive its benefits. This assessment involves identifying the activities that most significantly impact the VIE's economic performance and determine whether it, or another party, has the power to direct those activities. When evaluating whether we are the primary beneficiary of a VIE, we perform a qualitative analysis that considers the design of the VIE, the nature of our involvement and the variable interests held by other parties. See Note 12 – Variable Interest Entities for further information. |
Estimates | Estimates ● Impairment assessments of investments, property, plant and equipment, and goodwill; ● Asset retirement obligations; ● Pension valuation variables; ● Workers' compensation and pneumoconiosis valuation variables; ● Acquisition related purchase price allocations; ● Life of mine assumptions; ● Oil & gas reserve quantities and carrying amounts; and ● Determination of oil & gas revenue accruals These significant estimates and assumptions are discussed throughout these notes to the consolidated financial statements. |
Fair Value Measurements | Fair Value Measurements techniques used in our fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our own market assumptions. We use the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: ● Level 1 – Quoted prices for identical assets and liabilities in active markets that we have the ability to access at the measurement date. ● Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations whose inputs are observable or whose significant value drivers are observable. ● Level 3 – Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement requires judgment, considering factors specific to the asset or liability. Significant fair value measurements are used in our significant estimates and are discussed throughout these notes. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash Management | Cash Management |
Inventories | Inventories |
Business Combinations | Business Combinations |
Goodwill | Goodwill |
Property, Plant and Equipment | Property, Plant and Equipment mine. Depreciable lives for buildings, office equipment and improvements range from 1 to 29 years. Gains or losses arising from retirements are included in operating expenses. Depletion of coal mineral rights is provided on the basis of tonnage mined in relation to estimated recoverable tonnage, which equals estimated proven and probable coal mineral reserves. Therefore, our coal mineral rights are depleted based on only proven and probable coal mineral reserves. See Oil & Gas Reserve Quantities and Carrying Amounts below for a discussion of our accounting policies for oil & gas properties. |
Mine Development Costs | Mine Development Costs |
Leases | Leases 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. |
Long-Lived Asset Impairment | Long-Lived Asset Impairment |
Oil & Gas Reserve Quantities and Carrying Amounts | Oil & Gas Reserve Quantities and Carrying Amounts Mineral interests in oil & gas properties are grouped using a reasonable aggregation of properties with a common geological structural feature or stratigraphic condition, which we may also refer to as a depletable group. Mineral interests in proved oil & gas properties are depleted based on the units-of-production method. Proved reserves are quantities of oil & gas that can be estimated with reasonable certainty to be recoverable in the future from a given date forward, from known reservoirs, under existing economic conditions, operating methods, and government regulations. Proved developed resources are the quantities expected to be recovered through our operators' existing wells with existing equipment, infrastructure and operating methods. We evaluate impairment of our oil & gas mineral interests in proved properties whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. This evaluation is performed on a depletable group basis. We compare the undiscounted projected future cash flows expected in connection with a depletable group to its unamortized carrying amount to determine recoverability. When the carrying amount of a depletable group exceeds its estimated undiscounted future cash flows, the carrying amount is written down to its fair value, which is measured as the present value of the projected future cash flows of such properties. The factors used to determine fair value include estimates of proved reserves, future commodity prices, timing of future production, future expenditures, and a risk-adjusted discount rate. Our oil & gas mineral interests in unproved properties are also assessed for impairment periodically but at least annually when facts and circumstances indicate that the unproved property will not be transferred to proved properties. Impairment of individual unproved properties whose acquisition costs are relatively significant are assessed on a property-by-property basis, and an impairment loss is recognized if we determine that the unproved property will not be transferred to proved properties. Impairment of unproved properties whose acquisition costs are not individually significant are assessed on a group basis. Any amount of loss to be recognized and the amount of a valuation allowance needed to provide for impairment of those properties is determined by amortizing those properties in the aggregate on the basis of historical experience and other relevant information, such as the relative proportion of such properties on which proved reserves have been found in the past. Upon the sale of a complete depletable group, the book value thereof, less proceeds or salvage value, are charged to income. Upon the sale or retirement of an aggregation of interests which make up less than a complete depletable group, the proceeds are credited to accumulated depreciation, depletion and amortization, unless doing so would significantly alter the depreciation, depletion and amortization rate of the depletable group, in which case a gain or loss would be recorded. |
Intangibles | Intangibles Prepaid expenses and other assets Other long-term assets December 31, 2021 December 31, 2020 Accumulated Intangibles, Accumulated Intangibles, Original Cost Amortization Net Original Cost Amortization Net (in thousands) Customer contracts and other 10,623 (9,504) 1,119 10,623 (5,744) 4,879 Mining permits 1,500 (418) 1,082 1,500 (373) 1,127 Total $ 12,123 $ (9,922) $ 2,201 $ 12,123 $ (6,117) $ 6,006 Amortization expense attributable to intangible assets is estimated as follows: Year Ended December 31, (in thousands) 2022 $ 1,164 2023 45 2024 45 2025 45 2026 45 Thereafter 857 |
Investments | Investments Distributions received on those investments are recorded as income unless those distributions are considered a return on investment, in which case the historical cost is reduced. We accounted for our ownership interests in Kodiak Gas Services, LLC ("Kodiak") as equity securities without readily determinable fair values. In the first quarter of 2019, Kodiak redeemed our preferred interests and therefore Kodiak ceased to be an equity security investment. See Note 13 – Investments for further discussion of this investment. Our investments and ownership interests in entities in which we do not have a controlling financial interest are accounted for under the equity method of accounting if we have the ability to exercise significant influence over the entity. Investments accounted for under the equity method are initially recorded at cost, and the difference between the basis of our investment and the underlying equity in the net assets of the joint venture at the investment date, if any, is amortized over the lives of the related assets that gave rise to the difference. We hold an equity method investment in AllDale III through our subsidiary, Alliance Minerals. See Note 13 – Investments for further discussion of our equity method investment in AllDale III. We review our investments for impairment whenever events or changes in circumstances indicate a loss in the value of the investment may be other-than-temporary. |
Advance Royalties | Advance Royalties Advance royalties December 31, 2021 2020 (in thousands) Advance royalties, affiliates (see Note 21 – Related-Party Transactions) $ 55,613 $ 48,389 Advance royalties, third-parties 12,869 12,570 Total advance royalties $ 68,482 $ 60,959 |
Asset Retirement Obligations | Asset Retirement Obligations |
Pension Benefits | Pension Benefits The discount rate is determined for our pension benefit plan based on an approach specific to our plan. The year end discount rate is determined considering a yield curve comprised of high-quality corporate bonds and the timing of the expected benefit cash flows. The expected long-term rate of return on plan assets is determined based on broad equity and bond indices, the investment goals and objectives, the target investment allocation and on the average annual total return for each asset class. Unrecognized actuarial gains and losses and unrecognized prior service costs and credits are deferred and recorded in accumulated other comprehensive loss until amortized as a component of net periodic benefit cost. Unrecognized actuarial gains and losses in excess of 10% of the greater of the benefit obligation or the market-related value of plan assets are amortized over the participants' average remaining future years of service. |
Workers' Compensation and Pneumoconiosis (Black Lung) Benefits | Workers Compensation and Pneumoconiosis (Black Lung) Benefits We provide income replacement and medical treatment for work-related traumatic injury claims as required by applicable state laws. Workers' compensation laws also compensate survivors of workers who suffer employment related deaths. Our liability for traumatic injury claims is the estimated present value of current workers' compensation benefits, based on our actuarial estimates. Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claim development patterns, mortality, medical costs and interest rates. Our pneumoconiosis benefits liability is calculated using the service cost method based on the actuarial present value of the estimated pneumoconiosis obligation. Our actuarial calculations are based on numerous assumptions including claim development patterns, medical costs and mortality. Actuarial gains or losses are amortized over the remaining service period of active miners. See Note 20 – Accrued Workers' Compensation and Pneumoconiosis Benefits for more information on Workers' Compensation and Pneumoconiosis Benefits. |
Revenue Recognition | Coal Revenue Recognition The estimated transaction price from each of our contracts is based on the total amount of consideration we expect to be entitled to under the contract. Included in the transaction price for certain coal supply contracts is the impact of variable consideration, including quality price adjustments, handling services, government imposition claims, per ton price fluctuations based on certain coal sales price indices and anticipated payments in lieu of shipments. We have constrained the expected value of variable consideration in our estimation of transaction price and only included this consideration to the extent that it is probable that a significant revenue reversal will not occur. The estimated transaction price for each contract is allocated to our performance obligations based on relative standalone selling prices determined at contract inception. Variable consideration is allocated to a specific part of the contract in many instances, such as if the variable consideration is based on production activities for coal delivered during a certain period or the outcome of a customer's ability to accept coal shipments over a certain period. Contract assets are recorded as trade receivables and reported separately in our consolidated balance sheet from other contract assets as title passes to the customer and our right to consideration becomes unconditional. Payments for coal shipments are typically due within two four weeks services passes to the customer thereby granting us an unconditional right to receive consideration. Contract liabilities relate to consideration received in advance of the satisfaction of our performance obligations. Contract liabilities are recognized as revenue at the point in time when control of the good or service passes to the customer. Oil & Gas Revenue Recognition We also periodically earn revenue from lease bonuses. We recognize lease bonus revenue when we execute a lease of our mineral interests to exploration and production companies. A lease agreement represents our contract with an operator, which is generally an exploration and production company. The contract will (a) generally transfer the rights to any oil or gas discovered, (b) grant us a right to a specified royalty interest from the operator, and (c) require the operator to commence drilling and complete operations within a specified time period. Control of the minerals transfers to the operator when the lease agreement is executed. At the time we execute the lease agreement, we expect to receive the lease bonus payment within a reasonable time, though in no case more than one year, such that we do not adjust the expected amount of consideration for the effects of any significant financing component. As a non-operator, we have limited visibility into the timing of when new wells start producing. In addition, production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, we are required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices from our properties are estimated and recorded within the Trade receivables |
Common Unit-Based Compensation | Common Unit-Based Compensation We utilize the Supplemental Executive Retirement Plan ("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 MGP Amended and Restated Deferred Compensation Plan for Directors ("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. The fair value of restricted common unit grants under the LTIP, SERP and the Directors' Deferred Compensation Plan are determined on the grant date of the award and recognized as compensation expense on a pro rata basis for LTIP and SERP awards, as appropriate, over the requisite service period. Compensation expense is fully recognized on the grant date for quarterly distributions credited to SERP accounts and Directors' Deferred Compensation Plan awards. The corresponding liability is classified as equity and included in limited partners' capital in the consolidated financial statements (See Note 17 – Common Unit-Based Compensation Plans). |
Income Taxes | Income Taxes |
New Accounting Standards Issued and Not Yet Adopted | New Accounting Standards Issued and Not Yet Adopted |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Summary of intangible assets | December 31, 2021 December 31, 2020 Accumulated Intangibles, Accumulated Intangibles, Original Cost Amortization Net Original Cost Amortization Net (in thousands) Customer contracts and other 10,623 (9,504) 1,119 10,623 (5,744) 4,879 Mining permits 1,500 (418) 1,082 1,500 (373) 1,127 Total $ 12,123 $ (9,922) $ 2,201 $ 12,123 $ (6,117) $ 6,006 |
Schedule of estimated amortization expense attributable to intangible assets | Year Ended December 31, (in thousands) 2022 $ 1,164 2023 45 2024 45 2025 45 2026 45 Thereafter 857 |
Summary of advance royalties | December 31, 2021 2020 (in thousands) Advance royalties, affiliates (see Note 21 – Related-Party Transactions) $ 55,613 $ 48,389 Advance royalties, third-parties 12,869 12,570 Total advance royalties $ 68,482 $ 60,959 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACQUISITION | |
Schedule of asset acquisition | (in thousands) Mineral interests in proved properties $ 12,542 Mineral interests in unproved properties 18,419 $ 30,961 |
AllDale I and II | |
ACQUISITION | |
Schedule of total fair value of consideration transferred | As of January 3, 2019 (in thousands) Cash $ 176,205 Previously held investments 307,322 Total $ 483,527 |
Summary of fair value allocation of assets acquired and liabilities assumed | (in thousands) Cash and cash equivalents $ 900 Mineral interests in proved properties 184,032 Mineral interests in unproved properties 291,190 Receivables 9,326 Accounts payable (1,921) Net assets acquired $ 483,527 |
Schedule of revenue and earnings since acquisition date and pro forma condensed consolidated income statement | Year Ended December 31, 2019 (in thousands) Revenue $ 48,411 Net income 18,543 |
Wing | |
ACQUISITION | |
Summary of fair value allocation of assets acquired and liabilities assumed | (in thousands) Mineral interests in proved properties $ 75,071 Mineral interests in unproved properties 67,701 Receivables 2,155 Net assets acquired $ 144,927 |
Schedule of revenue and earnings since acquisition date and pro forma condensed consolidated income statement | Year Ended December 31, 2019 (in thousands) Revenue $ 4,625 Net income 1,291 Year Ended December 31, 2019 (in thousands) Total revenues As reported $ 1,961,720 Pro forma 1,966,291 Net income As reported $ 406,926 Pro forma 411,217 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INVENTORIES | |
Schedule of inventories | December 31, 2021 2020 (in thousands) Coal $ 24,845 $ 19,756 Supplies (net of reserve for obsolescence of $5,554 and $5,547, respectively) 35,457 36,651 Total inventories, net $ 60,302 $ 56,407 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | December 31, 2021 2020 (in thousands) Mining equipment and processing facilities $ 1,896,470 $ 1,896,324 Land and coal mineral rights 458,440 454,310 Oil & gas mineral interests 647,864 616,904 Buildings, office equipment, improvements and other miscellaneous equipment 282,902 279,938 Construction, mine development and other projects in progress 44,217 25,799 Mine development costs 278,454 280,815 Property, plant and equipment, at cost 3,608,347 3,554,090 Less accumulated depreciation, depletion and amortization (1,909,669) (1,753,845) Total property, plant and equipment, net $ 1,698,678 $ 1,800,245 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LONG-TERM DEBT | |
Schedule of long-term debt | Unamortized Discount and Principal Debt Issuance Costs December 31, December 31, 2021 2020 2021 2020 (in thousands) Revolving credit facility $ — $ 87,500 $ (5,019) $ (7,196) Senior notes 400,000 400,000 (3,048) (3,964) Securitization facility — 55,900 — — May 2019 equipment financing 1,503 4,956 — — November 2019 equipment financing 31,972 42,367 — — June 2020 equipment financing 9,605 13,057 — — 443,080 603,780 (8,067) (11,160) Less current maturities (16,071) (73,199) — — Total long-term debt $ 427,009 $ 530,581 $ (8,067) $ (11,160) |
Schedule of aggregate maturities of long-term debt | Year Ended December 31, (in thousands) 2022 $ 16,071 2023 24,970 2024 2,039 2025 400,000 $ 443,080 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LEASES | |
Schedule of lease cost and other information | The components of lease expense were as follows: December 31, 2021 2020 2019 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 597 $ 704 $ 14,608 Interest on lease liabilities 147 377 2,085 Operating lease cost 2,404 3,873 9,169 Short-term lease cost 200 84 464 Variable lease cost 1,306 1,375 1,360 Total lease cost $ 4,654 $ 6,413 $ 27,686 Supplemental cash flow information related to leases was as follows: December 31, 2021 2020 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,367 $ 3,870 $ 9,124 Operating cash flows for finance leases $ 147 $ 377 $ 891 Financing cash flows for finance leases $ 766 $ 8,368 $ 46,725 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 189 $ 278 $ 25,593 Supplemental balance sheet information related to leases was as follows: December 31, 2021 2020 (in thousands) Finance leases: Property and equipment finance lease assets, gross $ 5,485 $ 5,485 Accumulated depreciation (4,464) (3,867) Property and equipment finance lease assets, net $ 1,021 $ 1,618 |
Summary of supplemental lease information | December 31, 2021 2020 Weighted average remaining lease term Operating leases 15.5 years 13.4 years Finance leases 3.5 years 3.9 years Weighted average discount rate Operating leases 6.0 % 6.0 % Finance leases 7.4 % 8.0 % |
Schedule of maturities of operating lease liabilities | Operating leases Finance leases (in thousands) 2022 $ 2,257 $ 912 2023 2,073 139 2024 1,853 139 2025 1,539 139 2026 1,088 140 Thereafter 13,284 140 Total lease payments 22,094 1,609 Less imputed interest (7,908) (151) Total $ 14,186 $ 1,458 |
Schedule of maturities of finance lease liabilities | Operating leases Finance leases (in thousands) 2022 $ 2,257 $ 912 2023 2,073 139 2024 1,853 139 2025 1,539 139 2026 1,088 140 Thereafter 13,284 140 Total lease payments 22,094 1,609 Less imputed interest (7,908) (151) Total $ 14,186 $ 1,458 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
Summary of fair value measurements within the hierarchy | December 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Long-term debt $ — $ 457,758 $ — $ — $ 518,317 $ — Total $ — $ 457,758 $ — $ — $ 518,317 $ — |
PARTNERS' CAPITAL (Tables)
PARTNERS' CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PARTNERS' CAPITAL | |
Summary of quarterly per unit distribution paid | Year Ended December 31, 2021 2020 2019 First Quarter $ — $ 0.400 $ 0.530 Second Quarter $ 0.100 $ — $ 0.535 Third Quarter $ 0.100 $ — $ 0.540 Fourth Quarter $ 0.200 $ — $ 0.540 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
VARIABLE INTEREST ENTITIES | |
Schedule of distributions | Alliance Bluegrass Minerals Minerals (in thousands) Contributions $ 143,112 $ 5,963 Distributions 109,994 4,582 |
INVESTMENT (Tables)
INVESTMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INVESTMENT | |
Schedule of changes in equity method investment | Year Ended December 31, 2021 2020 2019 (in thousands) Beginning balance $ 27,268 $ 28,529 $ 28,974 Equity method investment income 2,130 907 2,203 Distributions received (3,073) (1,895) (2,648) Other — (273) — Ending balance $ 26,325 $ 27,268 $ 28,529 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of disaggregation of revenues by type | Coal Operations Royalties Other, Illinois Corporate and Basin Appalachia Oil & Gas Coal Elimination Consolidated (in thousands) Year Ended December 31, 2021 Coal sales $ 873,930 $ 512,993 $ — $ — $ — $ 1,386,923 Oil & gas royalties — — 74,988 — — 74,988 Coal royalties — — — 51,402 (51,402) — Transportation revenues 41,001 28,606 — — — 69,607 Other revenues 4,666 3,940 2,197 69 27,586 38,458 Total revenues $ 919,597 $ 545,539 $ 77,185 $ 51,471 $ (23,816) $ 1,569,976 Year Ended December 31, 2020 Coal sales $ 755,208 $ 477,064 $ — $ — $ — $ 1,232,272 Oil & gas royalties — — 42,912 — — 42,912 Coal royalties — — — 42,112 (42,112) — Transportation revenues 12,817 8,312 — — — 21,129 Other revenues 1,932 14,954 229 105 14,596 31,816 Total revenues $ 769,957 $ 500,330 $ 43,141 $ 42,217 $ (27,516) $ 1,328,129 Year Ended December 31, 2019 Coal sales $ 1,128,588 $ 628,406 $ — $ — $ 5,448 $ 1,762,442 Oil & gas royalties — — 51,735 — — 51,735 Coal royalties — — — 57,737 (57,737) — Transportation revenues 94,686 4,817 — — — 99,503 Other revenues 13,017 11,166 1,301 23 22,533 48,040 Total revenues $ 1,236,291 $ 644,389 $ 53,036 $ 57,760 $ (29,756) $ 1,961,720 |
Schedule of current coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied | 2025 and 2022 2023 2024 Thereafter Total (in thousands) Illinois Basin Coal Operations coal revenues $ 913,305 $ 321,079 $ 183,189 $ 39,789 $ 1,457,362 Appalachia Coal Operations coal revenues 463,334 70,595 49,436 — 583,365 Total coal revenues (1) $ 1,376,639 $ 391,674 $ 232,625 $ 39,789 $ 2,040,727 (1) Coal revenues generally consists of consolidated revenues excluding our Oil & Gas Royalties segment as well as intercompany revenues from our Coal Royalties segment. |
EARNINGS PER LIMITED PARTNER _2
EARNINGS PER LIMITED PARTNER UNIT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER LIMITED PARTNER UNIT | |
Reconciliation of net income and EPU calculations | Year Ended December 31, 2021 2020 2019 (in thousands, except per unit data) Net income (loss) attributable to ARLP $ 178,157 $ (129,220) $ 399,414 Less: Distributions to participating securities (2,334) — (4,254) Undistributed earnings attributable to participating securities (2,403) — (2,237) Net income (loss) attributable to ARLP available to limited partners $ 173,420 $ (129,220) $ 392,923 Weighted-average limited partner units outstanding – basic and diluted 127,195 127,165 128,117 Earnings per limited partner unit - basic and diluted (1) $ 1.36 $ (1.02) $ 3.07 (1) 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. For the years ended December 31, 2021, 2020 and 2019, the combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 1,967,672 , 773,664 and 1,284,013 , respectively, were considered anti-dilutive under the treasury stock method. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) - Defined benefit pension plan | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefit Plans | |
Summary of benefit plans for employees | December 31, 2021 2020 (dollars in thousands) Change in benefit obligations: Benefit obligations at beginning of year $ 147,934 $ 136,425 Interest cost 3,438 4,185 Actuarial loss (gain) (6,406) 12,396 Benefits paid (5,400) (5,072) Benefit obligations at end of year 139,566 147,934 Change in plan assets: Fair value of plan assets at beginning of year 100,969 91,567 Employer contribution 3,312 1,739 Actual return on plan assets 15,095 12,735 Benefits paid (5,400) (5,072) Fair value of plan assets at end of year 113,976 100,969 Funded status at the end of year $ (25,590) $ (46,965) Amounts recognized in balance sheet: Non-current liability $ (25,590) $ (46,965) Amounts recognized in accumulated other comprehensive income consists of: Prior service cost $ (568) $ (754) Net actuarial loss (27,271) (46,519) $ (27,839) $ (47,273) Weighted-average assumption to determine benefit obligations as of December 31, Discount rate 2.73% 2.37% Weighted-average assumptions used to determine net periodic benefit cost for the year ended December 31, Discount rate 2.37% 3.15% Expected return on plan assets 6.50% 6.50% |
Schedule of long-term rate of return assumptions | Asset allocation As of December 31, 2021 assumption Equity securities 62% Fixed income securities 33% Real estate 5% 100% |
Components of net periodic benefit cost | Year Ended December 31, 2021 2020 2019 (in thousands) Components of net periodic benefit cost: Interest cost $ 3,438 $ 4,185 $ 4,864 Expected return on plan assets (6,580) (5,861) (4,932) Amortization of prior service cost 186 186 186 Amortization of net loss 4,327 4,128 3,922 Net periodic benefit cost (1) $ 1,371 $ 2,638 $ 4,040 (1) Nonservice components of net periodic benefit cost are included in the Other income (expense) line item within our consolidated statements of income. |
Schedule of other changes in plan assets and benefit obligation recognized in accumulated other comprehensive income | Year Ended December 31, 2021 2020 (in thousands) Other changes in plan assets and benefit obligation recognized in accumulated other comprehensive loss: Net actuarial gain (loss) $ 14,921 $ (5,522) Reversal of amortization item: Prior service cost 186 186 Net actuarial loss 4,327 4,128 Total recognized in accumulated other comprehensive loss 19,434 (1,208) Net periodic benefit cost (1,371) (2,638) Total recognized in net periodic benefit cost and accumulated other comprehensive loss $ 18,063 $ (3,846) |
Schedule of estimated future benefit payments | Year Ended December 31, (in thousands) 2022 $ 5,938 2023 6,190 2024 6,407 2025 6,591 2026 6,733 2027-2031 34,859 $ 66,718 |
Schedule of asset allocation guidelines, actual asset allocations and fair value of Pension Plan assets | Percentage of Total Portfolio Minimum Target Maximum Equity securities 45% 62% 80% Fixed income securities 10% 33% 55% Real estate 0% 5% 10% December 31, 2021 2020 (in thousands) Cash and cash equivalents (a) $ 4,426 $ 3,888 Commingled investment funds measured at net asset value (b): Equities - Global 24,868 17,549 Equities - United States 41,140 31,835 Equities - United States futures (2,055) (2,616) Equities - International developed markets 16,382 8,920 Equities - International developed markets futures (16,260) (4,921) Equities - International emerging markets (3,363) 6,600 Equities - International emerging markets futures 7,024 (975) Fixed income - Investment grade 27,095 25,703 Fixed income - High yield 177 10,056 Fixed income - Emerging markets — 2,664 Fixed income - Futures (689) (1,265) Real estate 15,231 3,531 Total $ 113,976 $ 100,969 (a) Cash and cash equivalents represents a Level 1 fair value measurement. See Note 2 – Summary of Significant Accounting Policies – Fair Value Measurements for more information regarding the definitions of fair value hierarchy levels. (b) Investments measured at fair value using the net asset value per share (or its equivalent) have not been classified within the fair value hierarchy. The fair values of all commingled investment funds are determined based on the net asset values per unit of each of the funds. The net asset values per unit represent the aggregate value of the fund's assets at fair value less liabilities, divided by the number of units outstanding. |
COMMON UNIT-BASED COMPENSATIO_2
COMMON UNIT-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ARLP LTIP | |
COMMON UNIT-BASED 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 $ 17.18 $ 31,699 Granted 682,155 18.63 Vested (1) (885,381) 12.38 Forfeited (21,476) 20.84 Non-vested grants at December 31, 2019 1,603,378 20.39 17,349 Granted (2) 1,430,489 5.02 Vested (3) (919,524) 21.70 Grants canceled (4) (675,302) 18.62 Forfeited (8,552) 20.16 Non-vested grants at December 31, 2020 1,430,489 5.02 6,409 Granted (5) 1,818,190 6.03 Forfeited (118,204) 5.48 Non-vested grants at December 31, 2021 3,130,475 5.59 39,569 (1) During the year ended December 31, 2019, we issued 596,650 unrestricted common units to LTIP participants. The remaining vested units were settled in cash to satisfy tax withholding obligations of the LTIP participants. (2) In December 2020, we modified the vesting requirements for certain restricted units that we granted in February 2020 which were determined to be improbable of vesting under the original vesting requirements (the "2020 Grants"). The new vesting requirements make it probable the modified restricted units will vest. Also in December 2020, an additional 578,114 restricted units under these modified vesting requirements were granted. The grant date fair value reflects the modification date fair value for those awards that were modified. (3) In February 2020, we issued 279,622 unrestricted common units to LTIP participants as a result of satisfying the vesting requirements for 424,486 restricted units that were granted in 2017. The remaining vested units were settled in cash to satisfy tax withholding obligations of the LTIP participants. In December 2020, we accelerated the vesting requirements for 495,038 restricted units that were granted in 2018 (the "2018 Grants") and settled these restricted units in cash. (4) In December 2020, 675,302 restricted units that were granted in 2019 (the "2019 Grants") were canceled since it was determined that the vesting requirements for these restricted units were not probable of being satisfied. (5) In April 2021, we granted 921,430 restricted units and 896,760 restricted units that have minimum-value guarantees of $2.53 per unit and $3.79 per unit, respectively, regardless of whether or not the awards vest. |
SERP and Deferred Compensation Plans | |
COMMON UNIT-BASED 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 $ 27.34 $ 11,025 Granted 111,012 14.50 Issued (1) (115,484) 25.20 Phantom units outstanding as of December 31, 2019 631,365 25.48 6,831 Granted 129,265 5.25 Phantom units outstanding as of December 31, 2020 760,630 22.04 3,408 Granted 46,638 9.45 Issued (1) (138,570) 25.86 Phantom units outstanding as of December 31, 2021 668,698 20.13 8,452 (1) During the years ended December 31, 2021 and 2019, we issued ARLP common units that we purchased on the open market of 102,962 and 115,484 , respectively, to participants under the SERP and Directors' Deferred Compensation Plan . Units issued in 2021 were net of units settled in cash to satisfy tax withholding obligations. |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
Schedule of supplemental cash flow information | Year Ended December 31, 2021 2020 2019 (in thousands) Cash Paid For: Interest $ 36,402 $ 44,226 $ 43,093 Income taxes $ 11 $ 12 $ — Non-Cash Activity: Accounts payable for purchase of property, plant and equipment $ 8,325 $ 5,731 $ 14,504 Right-of-use assets acquired by operating lease $ 189 278 25,593 Market value of common units issued under deferred compensation plans before tax withholding requirements $ 1,082 $ 3,837 $ 17,415 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ASSET RETIREMENT OBLIGATIONS | |
Schedule of activity affecting the asset retirement and mine closing liability | Year Ended December 31, 2021 2020 (in thousands) Beginning balance $ 127,898 $ 137,514 Accretion expense 3,688 4,033 Payments (1,383) (1,769) Allocation of liability associated with acquisitions, mine development and change in assumptions 896 (11,880) Ending balance $ 131,099 $ 127,898 |
Schedule of estimated payments of asset retirement obligations | Year Ended December 31, (in thousands) 2022 $ 7,582 2023 2,232 2024 558 2025 3,788 2026 7,256 Thereafter 208,021 Aggregate undiscounted asset retirement obligations 229,437 Effect of discounting (98,338) Total asset retirement obligations 131,099 Less: current portion (7,582) Non-current asset retirement obligations $ 123,517 |
ACCRUED WORKERS' COMPENSATION_2
ACCRUED WORKERS' COMPENSATION AND PNEUMOCONIOSIS BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Black lung benefits: | |
Reconciliation of changes in workers' compensation liability | December 31, 2021 2020 (in thousands) Beginning balance $ 54,739 $ 53,384 Accruals increase 5,168 5,146 Payments (10,725) (8,482) Interest accretion 926 1,278 Valuation loss 3,340 3,413 Ending balance $ 53,448 $ 54,739 |
Reconciliation of changes in pneumoconiosis benefit obligation | December 31, 2021 2020 (in thousands) Benefit obligations at beginning of year $ 108,496 $ 97,683 Service cost 4,021 3,526 Interest cost 2,545 2,998 Actuarial loss 161 7,787 Benefits and expenses paid (3,907) (3,498) Benefit obligations at end of year $ 111,316 $ 108,496 |
Components of pneumoconiosis and workers' compensation expense | Year Ended December 31, 2021 2020 2019 (in thousands) Black lung benefits: Service cost $ 4,021 $ 3,526 $ 2,593 Interest cost (1) 2,545 2,998 3,044 Net amortization (1) 4,172 (686) (4,582) Total pneumoconiosis expense 10,738 5,838 1,055 Workers' compensation expense 8,339 12,305 17,541 Net periodic benefit cost $ 19,077 $ 18,143 $ 18,596 ________________________________________ (1) Interest cost and net amortization is included in the Other income (expense) line item within our consolidated statements of income ( see Note 2 – Summary of Significant Accounting Policies). |
Pneumoconiosis benefits | |
Black lung benefits: | |
Reconciliation of changes in the pneumoconiosis benefit obligation recognized in AOCI | Year Ended December 31, 2021 2020 2019 (in thousands) Net actuarial loss $ (161) $ (7,787) $ (23,298) Reversal of amortization item: Net actuarial loss (gain) 4,172 (686) (4,582) Total recognized in accumulated other comprehensive loss $ 4,011 $ (8,473) $ (27,880) |
Schedule of amount recognized in accumulated other comprehensive income | Year Ended December 31, 2021 2020 2019 (in thousands) Amount recognized in accumulated other comprehensive loss consists of: Net actuarial loss $ 36,388 $ 40,399 $ 31,927 |
Summary of information about amounts recognized in the consolidated balance sheets | December 31, 2021 2020 (in thousands) Workers’ compensation claims $ 53,448 $ 54,739 Pneumoconiosis benefit claims 111,316 108,496 Total obligations 164,764 163,235 Less current portion (12,293) (10,646) Non-current obligations $ 152,471 $ 152,589 |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RELATED-PARTY TRANSACTIONS | |
Summary of advanced royalties outstanding | WKY CoalPlay Towhead Webster Henderson WKY Craft Foundations Coal Coal Coal CoalPlay Henderson Henderson Tunnel & Union Webster Henderson & Union Ridge Counties, KY County, KY County, KY Counties, KY Total Acquired Acquired Acquired Acquired Acquired 2005 December 2014 December 2014 December 2014 February 2015 (in thousands) As of January 1, 2019 $ — $ 14,077 $ — $ 10,086 $ 8,482 $ 32,645 Payments 4,500 3,597 2,568 2,521 2,131 15,317 Recoupment (3,000) (1,071) — — (107) (4,178) Unrecoupable — — (2,568) — — (2,568) As of December 31, 2019 1,500 16,603 — 12,607 10,506 41,216 Payments 3,000 3,597 2,568 2,522 2,132 13,819 Recoupment (3,000) (1,022) — — (56) (4,078) Unrecoupable — — (2,568) — — (2,568) As of December 31, 2020 1,500 19,178 — 15,129 12,582 48,389 Payments 3,000 3,597 2,568 2,521 2,131 13,817 Recoupment (3,000) (1,025) — — — (4,025) Unrecoupable — — (2,568) — — (2,568) As of December 31, 2021 $ 1,500 $ 21,750 $ — $ 17,650 $ 14,713 $ 55,613 |
CONCENTRATION OF CREDIT RISK _2
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS | |
Schedule of total revenues from major customers | Year Ended December 31, Segment 2021 2020 2019 (in thousands) Customer A Illinois Basin $ 239,482 $ 197,379 $ 228,500 Customer B Appalachia — — 213,319 Customer C Illinois Basin — 157,271 — Customer D Illinois Basin/Appalachia — 137,785 — |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION | |
Schedule of reportable segment results | Coal Operations Royalties Other, Illinois Corporate and Basin Appalachia Oil & Gas Coal Elimination Consolidated (in thousands) Year Ended December 31, 2021 Revenues - Outside $ 919,597 $ 545,539 $ 77,185 $ 69 $ 27,586 $ 1,569,976 Revenues - Intercompany — — — 51,402 (51,402) — Total revenues (1) 919,597 545,539 77,185 51,471 (23,816) 1,569,976 Segment Adjusted EBITDA Expense (2) 613,303 344,332 9,943 18,269 (33,198) 952,649 Segment Adjusted EBITDA (3) 265,292 172,601 68,774 33,202 9,383 549,252 Total assets 676,091 420,144 630,627 285,943 146,601 2,159,406 Capital expenditures (4) 60,166 47,577 — 45 15,196 122,984 Year Ended December 31, 2020 Revenues - Outside $ 769,957 $ 500,330 $ 43,141 $ 105 $ 14,596 $ 1,328,129 Revenues - Intercompany — — — 42,112 (42,112) — Total revenues (1) 769,957 500,330 43,141 42,217 (27,516) 1,328,129 Segment Adjusted EBITDA Expense (2) 543,264 320,656 4,106 18,249 (25,026) 861,249 Segment Adjusted EBITDA (3) 213,876 171,362 39,773 23,968 (2,490) 446,489 Total assets 738,315 440,815 613,916 288,525 84,445 2,166,016 Capital expenditures 48,636 70,960 — 12 1,493 121,101 Year Ended December 31, 2019 Revenues - Outside $ 1,219,601 $ 644,389 $ 53,036 $ 23 $ 44,671 $ 1,961,720 Revenues - Intercompany 16,690 — — 57,737 (74,427) — Total revenues (1) 1,236,291 644,389 53,036 57,760 (29,756) 1,961,720 Segment Adjusted EBITDA Expense (2) 791,795 424,387 7,811 21,445 (40,542) 1,204,896 Segment Adjusted EBITDA (3) 349,810 215,187 46,997 36,315 23,692 672,001 Total assets 1,092,188 489,378 643,213 292,436 69,479 2,586,694 Capital expenditures (4) 188,928 111,729 — 352 4,849 305,858 (1) Revenues included in the Other, Corporate and Elimination column are attributable to intercompany eliminations, which are primarily the coal royalties intercompany eliminations, outside revenues at the Matrix Group and other outside miscellaneous sales and revenue activities. (2) Segment Adjusted EBITDA Expense includes operating expenses, coal purchases and other income. Transportation expenses are excluded as transportation revenues are recognized in an amount equal to transportation expenses when title passes to the customer. The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to Operating expenses (excluding depreciation, depletion and amortization) Year Ended December 31, 2021 2020 2019 (in thousands) Segment Adjusted EBITDA Expense $ 952,649 $ 861,249 $ 1,204,896 Outside coal purchases (6,372) — (23,357) Other income (expense) (3,020) (1,593) 561 Operating expenses (excluding depreciation, depletion and amortization) $ 943,257 $ 859,656 $ 1,182,100 (3) Segment Adjusted EBITDA is defined as net income (loss) attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization, general and administrative expense, asset and goodwill impairments and acquisition gain. Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments. Consolidated Segment Adjusted EBITDA is reconciled to net income (loss) as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Consolidated Segment Adjusted EBITDA $ 549,252 $ 446,489 $ 672,001 General and administrative (70,160) (59,806) (72,997) Depreciation, depletion and amortization (261,377) (313,387) (309,075) Asset impairments — (24,977) (15,190) Goodwill impairment — (132,026) — Interest expense, net (39,141) (45,478) (45,496) Acquisition gain — — 177,043 Income tax (expense) benefit (417) (35) 211 Acquisition gain attributable to noncontrolling interest — — (7,083) Net income (loss) attributable to ARLP $ 178,157 $ (129,220) $ 399,414 Noncontrolling interest 598 169 7,512 Net income (loss) $ 178,755 $ (129,051) $ 406,926 . (4) Capital Expenditures shown exclude the AllDale Acquisition on January 3, 2019, the Wing Acquisition on August 2, 2019 and Boulders Acquisition on October 13, 2021 (Note 3 – Acquisitions) . |
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization) | Year Ended December 31, 2021 2020 2019 (in thousands) Segment Adjusted EBITDA Expense $ 952,649 $ 861,249 $ 1,204,896 Outside coal purchases (6,372) — (23,357) Other income (expense) (3,020) (1,593) 561 Operating expenses (excluding depreciation, depletion and amortization) $ 943,257 $ 859,656 $ 1,182,100 |
Reconciliation of consolidated Segment Adjusted EBITDA to net income | Year Ended December 31, 2021 2020 2019 (in thousands) Consolidated Segment Adjusted EBITDA $ 549,252 $ 446,489 $ 672,001 General and administrative (70,160) (59,806) (72,997) Depreciation, depletion and amortization (261,377) (313,387) (309,075) Asset impairments — (24,977) (15,190) Goodwill impairment — (132,026) — Interest expense, net (39,141) (45,478) (45,496) Acquisition gain — — 177,043 Income tax (expense) benefit (417) (35) 211 Acquisition gain attributable to noncontrolling interest — — (7,083) Net income (loss) attributable to ARLP $ 178,157 $ (129,220) $ 399,414 Noncontrolling interest 598 169 7,512 Net income (loss) $ 178,755 $ (129,051) $ 406,926 |
ORGANIZATION AND PRESENTATION (
ORGANIZATION AND PRESENTATION (Details) $ in Millions | Oct. 31, 2021USD ($)a | Oct. 13, 2021USD ($)a | Aug. 02, 2019a | Jan. 03, 2019a | Dec. 31, 2021a |
Ownership interests | |||||
Royalty acres, net | 57,000 | ||||
Boulders | |||||
Ownership interests | |||||
Royalty acres, net | 1,480 | 1,480 | |||
Oil & gas royalty acquisition | $ | $ 31 | $ 31 | |||
AllDale I and II | |||||
Ownership interests | |||||
Royalty acres, net | 43,000 | ||||
Wing | |||||
Ownership interests | |||||
Royalty acres, net | 9,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill | |||
Impairments of goodwill | $ 0 | $ 132,026 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Tangible Assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Preparation plants, processing facilities and mineral rights | Minimum | |
Property, Plant and Equipment | |
Estimated useful life | 1 year |
Preparation plants, processing facilities and mineral rights | Maximum | |
Property, Plant and Equipment | |
Estimated useful life | 29 years |
Other plant and equipment and mining equipment | Minimum | |
Property, Plant and Equipment | |
Estimated useful life | 1 year |
Other plant and equipment and mining equipment | Maximum | |
Property, Plant and Equipment | |
Estimated useful life | 29 years |
Buildings, Office Equipment And Improvements | Minimum | |
Property, Plant and Equipment | |
Estimated useful life | 1 year |
Buildings, Office Equipment And Improvements | Maximum | |
Property, Plant and Equipment | |
Estimated useful life | 29 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Lease renewal term | 10 years |
Lease termination option term | 1 year |
Minimum | |
Lease term | 1 year |
Maximum | |
Lease term | 29 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets | |||
Amortization expense attributable to intangible assets | $ 3,800 | $ 4,900 | $ 9,100 |
Original Cost | 12,123 | 12,123 | |
Accumulated Amortization | (9,922) | (6,117) | |
Intangibles, Net | 2,201 | 6,006 | |
Estimated amortization expense attributable to intangible assets | |||
2022 | 1,164 | ||
2023 | 45 | ||
2024 | 45 | ||
2025 | 45 | ||
2026 | 45 | ||
Thereafter | 857 | ||
Customer contracts, net | |||
Intangible Assets | |||
Original Cost | 10,623 | 10,623 | |
Accumulated Amortization | (9,504) | (5,744) | |
Intangibles, Net | 1,119 | 4,879 | |
Permits | |||
Intangible Assets | |||
Original Cost | 1,500 | 1,500 | |
Accumulated Amortization | (418) | (373) | |
Intangibles, Net | $ 1,082 | $ 1,127 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advance Royalties (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Advance Royalties | ||
Advance royalties, affiliates | $ 55,613 | $ 48,389 |
Advance royalties, third-parties | 12,869 | 12,570 |
Total advance royalties, net | $ 68,482 | $ 60,959 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Percentage of qualifying income for tax purposes | 90.00% | |
Assets and Liabilities, Lessee | ||
Operating lease liabilities | $ 14,186 | |
Offsetting right-of-use assets | $ 14,158 | $ 15,004 |
Minimum | ||
Revenue Recognition | ||
Coal shipments, payment period | 14 days | |
Maximum | ||
Revenue Recognition | ||
Coal shipments, payment period | 28 days | |
Defined benefit pension plan | ||
Employee Benefit Plans | ||
Threshold for amortization of unrecognized actuarial gains and losses (as a percent) | 10.00% |
ACQUISITIONS - Assets and Liabi
ACQUISITIONS - Assets and Liabilities (Details) $ in Thousands | Aug. 02, 2019USD ($)a | Jan. 03, 2019USD ($)a | Dec. 31, 2021a |
ACQUISITION | |||
Royalty acres, net | a | 57,000 | ||
Assets acquired and liabilities assumed | |||
Previously held investments | $ 900 | ||
Mineral interests in proved properties | 184,032 | ||
Mineral interests in unproved properties | 291,190 | ||
Receivables | 9,326 | ||
Accounts payable | (1,921) | ||
Net assets acquired | $ 483,527 | ||
AllDale I and II | |||
ACQUISITION | |||
Royalty acres, net | a | 43,000 | ||
Cash | $ 176,205 | ||
Assets acquired and liabilities assumed | |||
Noncontrolling interest fair value | $ 12,300 | ||
Wing | |||
ACQUISITION | |||
Royalty acres, net | a | 9,000 | ||
Cash | $ 144,900 | ||
Assets acquired and liabilities assumed | |||
Mineral interests in proved properties | 75,071 | ||
Mineral interests in unproved properties | 67,701 | ||
Receivables | 2,155 | ||
Net assets acquired | $ 144,927 |
ACQUISITIONS - Consideration (D
ACQUISITIONS - Consideration (Details) - USD ($) $ in Thousands | Aug. 02, 2019 | Jan. 03, 2019 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 02, 2019 |
ACQUISITION | ||||||
Equity method investments | $ 26,325 | $ 27,268 | ||||
Acquisition gain | $ 177,043 | |||||
AllDale I and II | ||||||
ACQUISITION | ||||||
Cash | $ 176,205 | |||||
Previously held investment | 307,322 | |||||
Total | 483,527 | |||||
Equity method investments | $ 130,300 | |||||
Acquisition gain | $ 177,000 | |||||
Wing | ||||||
ACQUISITION | ||||||
Cash | $ 144,900 |
ACQUISITIONS - Pro Forma (Detai
ACQUISITIONS - Pro Forma (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pro forma condensed consolidated income statement | |||
Total revenues, As reported | $ 1,569,976 | $ 1,328,129 | $ 1,961,720 |
Net income (loss) | $ 178,755 | $ (129,051) | 406,926 |
Wing | |||
Acquisitions, additional information | |||
Revenue of acquired business | 4,625 | ||
Net income of acquired business | 1,291 | ||
Pro forma condensed consolidated income statement | |||
Total revenues, Pro forma | 1,966,291 | ||
Net income, Pro forma | 411,217 | ||
AllDale I and II | |||
Acquisitions, additional information | |||
Revenue of acquired business | 48,411 | ||
Net income of acquired business | $ 18,543 |
ACQUISITIONS - Asset Acquisitio
ACQUISITIONS - Asset Acquisition (Details) $ in Thousands | Oct. 31, 2021USD ($)a | Oct. 13, 2021USD ($)a | Dec. 31, 2021a |
Asset Acquisition [Line Items] | |||
Royalty acres, net | a | 57,000 | ||
Boulders | |||
Asset Acquisition [Line Items] | |||
Royalty acres, net | a | 1,480 | 1,480 | |
Oil & gas royalty acquisition | $ 31,000 | $ 31,000 | |
Proved properties | 12,542 | ||
Unproved properties | 18,419 | ||
Total | $ 30,961 |
LONG-LIVED ASSET IMPAIRMENTS (D
LONG-LIVED ASSET IMPAIRMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Aug. 16, 2019 | Aug. 15, 2019 | |
Asset impairment charges | |||||
Asset impairments | $ 24,977 | $ 15,190 | |||
Total assets | 2,166,016 | 2,586,694 | $ 2,159,406 | ||
Dotiki Mine | |||||
Asset impairment charges | |||||
Total assets | $ 25,800 | $ 35,900 | |||
Accrued payments | $ 5,100 | ||||
Illinois Basin | |||||
Asset impairment charges | |||||
Asset impairments | 23,500 | ||||
Total assets | 738,315 | 1,092,188 | 676,091 | ||
Illinois Basin | Dotiki Mine | |||||
Asset impairment charges | |||||
Asset impairments | 7,500 | ||||
Coal Royalties | |||||
Asset impairment charges | |||||
Asset impairments | 1,500 | ||||
Total assets | $ 288,525 | 292,436 | $ 285,943 | ||
Coal Royalties | Dotiki Mine | |||||
Asset impairment charges | |||||
Asset impairments | $ 7,700 |
GOODWILL IMPAIRMENT (Details)
GOODWILL IMPAIRMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
GOODWILL IMPAIRMENT | ||||
Goodwill | $ 4,400 | $ 4,373 | $ 4,373 | $ 136,400 |
Impairments of goodwill | $ 0 | $ 132,026 | 0 | |
Hamilton mining complex | ||||
GOODWILL IMPAIRMENT | ||||
Goodwill | $ 132,000 | |||
Impairments of goodwill | $ 132,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INVENTORIES | |||
Coal | $ 24,845 | $ 19,756 | |
Supplies (net of reserve for obsolescence of $5,554 and $5,547, respectively) | 35,457 | 36,651 | |
Total inventories, net | 60,302 | 56,407 | |
Reserve for obsolescence | 5,554 | 5,547 | |
Reduce inventory carrying value to market | $ 70 | $ 3,245 | $ 4,895 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment, at cost | $ 3,608,347 | $ 3,554,090 | |
Less accumulated depreciation, depletion and amortization | (1,909,669) | (1,753,845) | |
Total property, plant and equipment, net | 1,698,678 | 1,800,245 | |
Depreciation | 256,900 | 297,000 | $ 312,400 |
Mining Equipment | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment, at cost | 1,896,470 | 1,896,324 | |
Land And Mineral Rights | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment, at cost | 458,440 | 454,310 | |
Coal reserves not subject to depletion | 37,400 | 37,500 | |
Oil and gas mineral interests | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment, at cost | 647,864 | 616,904 | |
Unproved properties | 355,100 | 340,500 | |
Buildings, Office Equipment And Improvements | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment, at cost | 282,902 | 279,938 | |
Construction and mine development in progress | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment, at cost | 44,217 | 25,799 | |
Mine development costs | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment, at cost | $ 278,454 | 280,815 | |
Mine development costs | $ 13,100 |
LONG-TERM DEBT - Components (De
LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Principal | ||
Aggregate maturities of long-term debt | $ 443,080 | $ 603,780 |
Less current maturities | (16,071) | (73,199) |
Total long-term debt | 427,009 | 530,581 |
Unamortized Discount and Debt Issuance Costs | ||
Unamortized debt issuance costs including current and non-current | (8,067) | (11,160) |
Total unamortized debt issuance costs | (8,067) | (11,160) |
Revolving credit facility | ||
Principal | ||
Aggregate maturities of long-term debt | 87,500 | |
Unamortized Discount and Debt Issuance Costs | ||
Unamortized debt issuance costs including current and non-current | (5,019) | (7,196) |
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 | (3,048) | (3,964) |
Securitization Facility | ||
Principal | ||
Aggregate maturities of long-term debt | 55,900 | |
May 2019 equipment financing | ||
Principal | ||
Aggregate maturities of long-term debt | 1,503 | 4,956 |
November 2019 equipment financing | ||
Principal | ||
Aggregate maturities of long-term debt | 31,972 | 42,367 |
June 2020 equipment financing | ||
Principal | ||
Aggregate maturities of long-term debt | $ 9,605 | $ 13,057 |
LONG-TERM DEBT - Credit Facilit
LONG-TERM DEBT - Credit Facility (Details) $ in Thousands | Mar. 09, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Long-Term Debt | |||
Debt issuance costs incurred | $ 113 | $ 6,280 | |
Credit Agreement | |||
Long-Term Debt | |||
Maximum borrowing capacity | $ 459,500 | ||
Debt issuance costs incurred | $ 6,300 | ||
ARLP debt arrangements requirements, fixed charge coverage ratio | 1 | ||
ARLP debt arrangements requirements, debt to cash flow ratio | 2.5 | ||
ARLP debt arrangements requirements, cash flow to interest expense ratio | 3 | ||
Actual debt to cash flow ratio for trailing twelve months | 0.95 | ||
Actual cash flow to interest expense ratio for trailing twelve months | 11.91 | ||
ARLP debt arrangements requirements, period over which the ratios are required to be maintained | 12 months | ||
Restricted net assets of subsidiaries | $ 372,000 | ||
Credit Agreement | Eurodollar Rate | |||
Long-Term Debt | |||
Effective interest rate (as a percent) | 2.45% | ||
Credit Agreement | Credit Agreement, first lien | |||
Long-Term Debt | |||
ARLP debt arrangements requirements, debt to cash flow ratio | 1.5 | ||
Actual debt to cash flow ratio for trailing twelve months | 0.10 | ||
Revolving credit facility | |||
Long-Term Debt | |||
Line of credit facility, available for borrowing | $ 415,400 | ||
Annual commitment fee percentage, undrawn portion | 0.35% | ||
Letters of credit subfacility | |||
Long-Term Debt | |||
Maximum borrowing capacity | $ 125,000 | ||
Letters of credit outstanding | $ 44,100 | ||
Swingline subfacility | |||
Long-Term Debt | |||
Maximum borrowing capacity | $ 15,000 | ||
Other | |||
Long-Term Debt | |||
Maximum borrowing capacity | 5,000 | ||
Letters of credit outstanding | $ 5,000 |
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% |
LONG-TERM DEBT - Securitization
LONG-TERM DEBT - Securitization Facility (Details) - Securitization Facility - USD ($) $ in Millions | Dec. 31, 2021 | Jan. 31, 2021 | Dec. 05, 2014 |
Long-Term Debt | |||
Maximum borrowing capacity | $ 60 | $ 100 | |
Facility outstanding amount | $ 0 |
LONG-TERM DEBT - Equipment fina
LONG-TERM DEBT - Equipment financing and other (Details) $ in Millions | Jun. 05, 2020USD ($) | Nov. 06, 2019USD ($)payment | May 17, 2019USD ($) |
May 2019 Equipment Financing | |||
Long-Term Debt | |||
Principal amount | $ 10 | ||
Term | 36 months | ||
Effective interest rate (as a percent) | 6.25% | ||
November 2019 Equipment Financing | |||
Long-Term Debt | |||
Principal amount | $ 53.1 | ||
Term | 4 years | ||
Effective interest rate (as a percent) | 4.75% | ||
Number of monthly payments | payment | 47 | ||
Periodic Payment | $ 1 | ||
Balloon payment on maturity | $ 11.6 | ||
June 2020 equipment financing | |||
Long-Term Debt | |||
Principal amount | $ 14.7 | ||
Term | 48 months | ||
Effective interest rate (as a percent) | 6.10% |
LONG-TERM DEBT - Maturities (De
LONG-TERM DEBT - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Aggregate maturities of long-term debt | ||
2022 | $ 16,071 | |
2023 | 24,970 | |
2024 | 2,039 | |
2025 | 400,000 | |
Aggregate maturities of long-term debt | $ 443,080 | $ 603,780 |
LEASES - Lease expense (Details
LEASES - Lease expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
LEASES | |||
Amortization of right-of-use assets | $ 597 | $ 704 | $ 14,608 |
Interest on lease liabilities | 147 | 377 | 2,085 |
Operating lease cost | 2,404 | 3,873 | 9,169 |
Short-term lease cost | 200 | 84 | 464 |
Variable lease cost | 1,306 | 1,375 | 1,360 |
Total lease cost | 4,654 | 6,413 | 27,686 |
Rental expense | $ 3,300 | $ 5,200 | $ 11,000 |
LEASES - Cash flow (Details)
LEASES - Cash flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
LEASES | |||
Operating cash flows for operating leases | $ 2,367 | $ 3,870 | $ 9,124 |
Operating cash flows for finance leases | 147 | 377 | 891 |
Financing cash flows for finance leases | 766 | 8,368 | 46,725 |
Operating leases, Right-of-use assets obtained in exchange for lease obligations | $ 189 | $ 278 | $ 25,593 |
LEASES - Balance Sheet (Details
LEASES - Balance Sheet (Details) - Assets under finance lease - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Lease balance sheet information | ||
Property and equipment finance lease assets, gross | $ 5,485 | $ 5,485 |
Accumulated depreciation | (4,464) | (3,867) |
Property and equipment finance lease assets, net | $ 1,021 | $ 1,618 |
LEASES - Weighted Average (Deta
LEASES - Weighted Average (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
LEASES | ||
Weighted average remaining lease term of operating leases | 15 years 6 months | 13 years 4 months 24 days |
Weighted average remaining lease term of finance leases | 3 years 6 months | 3 years 10 months 24 days |
Weighted average discount rate of operating leases (as a percent) | 6.00% | 6.00% |
Weighted average discount rate of finance leases (as a percent) | 7.40% | 8.00% |
LEASES - Maturities (Details)
LEASES - Maturities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating leases | |
2022 | $ 2,257 |
2023 | 2,073 |
2024 | 1,853 |
2025 | 1,539 |
2026 | 1,088 |
Thereafter | 13,284 |
Total lease payments | 22,094 |
Less imputed interest | (7,908) |
Total | 14,186 |
Finance leases | |
2022 | 912 |
2023 | 139 |
2024 | 139 |
2025 | 139 |
2026 | 140 |
Thereafter | 140 |
Total lease payments | 1,609 |
Less imputed interest | (151) |
Total | $ 1,458 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Estimated fair value - Significant Observable Inputs (Level 2) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
FAIR VALUE MEASUREMENTS | ||
Long-term debt | $ 457,758 | $ 518,317 |
Total | $ 457,758 | $ 518,317 |
PARTNERS' CAPITAL - Distributio
PARTNERS' CAPITAL - Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 28, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
PARTNERS' CAPITAL | ||||||||||||
Period following quarter end for distribution of available cash | 45 days | |||||||||||
Quarterly distribution paid (in dollars per unit) | $ 0.200 | $ 0.100 | $ 0.100 | $ 0.400 | $ 0.540 | $ 0.540 | $ 0.535 | $ 0.530 | ||||
Total Cash Distribution | $ 52,158 | $ 51,753 | $ 278,425 | |||||||||
Distribution declared (in dollars per unit) | $ 0.25 | |||||||||||
Quarterly distribution declared | $ 31,800 |
PARTNERS' CAPITAL - Narrative (
PARTNERS' CAPITAL - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 44 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | May 31, 2018 | |
Partners' capital | |||
Treasury units retired | $ 0 | ||
Limited Partners' Capital | |||
Partners' capital | |||
Repurchase and retire authorization | $ 100 | ||
Treasury units retired | $ 93.5 | ||
Number of units retired | 5,460,639 | ||
Repurchase price (in dollars per unit) | $ 17.12 |
VARIABLE INTEREST ENTITIES - Ca
VARIABLE INTEREST ENTITIES - Cavalier (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 03, 2019 | |
Variable Interest Entities | ||||
Distributions paid to Partners | $ 52,158 | $ 51,753 | $ 278,425 | |
Cavalier Minerals | Alliance Minerals | ||||
Variable Interest Entities | ||||
Contributions | 143,112 | |||
Distributions paid to Partners | 109,994 | |||
Cavalier Minerals | Bluegrass Minerals | ||||
Variable Interest Entities | ||||
Contributions | 5,963 | |||
Distributions paid to Partners | $ 4,582 | |||
Cavalier Minerals | Bluegrass Minerals | ||||
Variable Interest Entities | ||||
Incentive distribution of available cash (as a percent) | 25.00% | |||
Cavalier Minerals | ||||
Variable Interest Entities | ||||
Ownership interest in VIE (as a percent) | 96.00% | |||
Cavalier Minerals | Bluegrass Minerals | ||||
Variable Interest Entities | ||||
Noncontrolling ownership interest (as a percent) | 4.00% | 4.00% |
VARIABLE INTEREST ENTITIES - Al
VARIABLE INTEREST ENTITIES - All Dale III (Detail) - All Dale Minerals III - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Feb. 28, 2017 | |
Equity Investments | ||
Other Commitment | $ 30 | |
Distribution after hurdles (as a percent) | 25.00% | |
Specified internal rate of return (as a percent) | 10.00% | |
Percentage of available cash distributed | 125.00% | |
All Dale Minerals III | ||
Equity Investments | ||
Ownership percentage by limited partners | 13.90% |
INVESTMENT - AllDale (Details)
INVESTMENT - AllDale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Beginning balance | $ 27,268 | ||
Equity method investment income | 2,130 | $ 907 | $ 2,203 |
Ending balance | 26,325 | 27,268 | |
All Dale Minerals III | |||
ASSETS | |||
Beginning balance | 27,268 | 28,529 | 28,974 |
Equity method investment income | 2,130 | 907 | 2,203 |
Distributions received | (3,073) | (1,895) | (2,648) |
Other | (273) | ||
Ending balance | $ 26,325 | $ 27,268 | $ 28,529 |
INVESTMENT - Kodiak (Details)
INVESTMENT - Kodiak (Details) - USD ($) $ in Thousands | Feb. 08, 2019 | Dec. 31, 2019 | Jul. 19, 2017 |
Equity securities without readily determinable fair value | |||
Redemption of preferred interest | $ 134,288 | ||
Kodiak | |||
Equity securities without readily determinable fair value | |||
Equity securities | $ 0 | $ 100,000 | |
Redemption of preferred interest | 135,000 | ||
Gain on redemption | $ 11,500 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of revenues | |||
Revenues | $ 1,569,976 | $ 1,328,129 | $ 1,961,720 |
Illinois Basin | |||
Disaggregation of revenues | |||
Revenues | 919,597 | 769,957 | 1,236,291 |
Appalachia | |||
Disaggregation of revenues | |||
Revenues | 545,539 | 500,330 | 644,389 |
Oil & Gas Royalties | |||
Disaggregation of revenues | |||
Revenues | 77,185 | 43,141 | 53,036 |
Coal Royalties | |||
Disaggregation of revenues | |||
Revenues | 51,471 | 42,217 | 57,760 |
Other, Corporate and Elimination | |||
Disaggregation of revenues | |||
Revenues | (23,816) | (27,516) | (29,756) |
Coal sales | |||
Disaggregation of revenues | |||
Revenues | 1,386,923 | 1,232,272 | 1,762,442 |
Coal sales | Illinois Basin | |||
Disaggregation of revenues | |||
Revenues | 873,930 | 755,208 | 1,128,588 |
Coal sales | Appalachia | |||
Disaggregation of revenues | |||
Revenues | 512,993 | 477,064 | 628,406 |
Coal sales | Other, Corporate and Elimination | |||
Disaggregation of revenues | |||
Revenues | 5,448 | ||
Oil & gas royalties | |||
Disaggregation of revenues | |||
Revenues | 74,988 | 42,912 | 51,735 |
Oil & gas royalties | Oil & Gas Royalties | |||
Disaggregation of revenues | |||
Revenues | 74,988 | 42,912 | 51,735 |
Coal royalties | Coal Royalties | |||
Disaggregation of revenues | |||
Revenues | 51,402 | 42,112 | 57,737 |
Coal royalties | Other, Corporate and Elimination | |||
Disaggregation of revenues | |||
Revenues | (51,402) | (42,112) | (57,737) |
Transportation revenues | |||
Disaggregation of revenues | |||
Revenues | 69,607 | 21,129 | 99,503 |
Transportation revenues | Illinois Basin | |||
Disaggregation of revenues | |||
Revenues | 41,001 | 12,817 | 94,686 |
Transportation revenues | Appalachia | |||
Disaggregation of revenues | |||
Revenues | 28,606 | 8,312 | 4,817 |
Other revenues | |||
Disaggregation of revenues | |||
Revenues | 38,458 | 31,816 | 48,040 |
Other revenues | Illinois Basin | |||
Disaggregation of revenues | |||
Revenues | 4,666 | 1,932 | 13,017 |
Other revenues | Appalachia | |||
Disaggregation of revenues | |||
Revenues | 3,940 | 14,954 | 11,166 |
Other revenues | Oil & Gas Royalties | |||
Disaggregation of revenues | |||
Revenues | 2,197 | 229 | 1,301 |
Other revenues | Coal Royalties | |||
Disaggregation of revenues | |||
Revenues | 69 | 105 | 23 |
Other revenues | Other, Corporate and Elimination | |||
Disaggregation of revenues | |||
Revenues | $ 27,586 | $ 14,596 | $ 22,533 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Supply contracts (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 2,040,727 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 1,376,639 |
Expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 391,674 |
Expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 232,625 |
Expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 39,789 |
Expected timing of satisfaction period | 1 year |
Illinois Basin | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 1,457,362 |
Illinois Basin | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 913,305 |
Expected timing of satisfaction period | 1 year |
Illinois Basin | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 321,079 |
Expected timing of satisfaction period | 1 year |
Illinois Basin | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 183,189 |
Expected timing of satisfaction period | 1 year |
Illinois Basin | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 39,789 |
Expected timing of satisfaction period | 1 year |
Appalachia | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 583,365 |
Appalachia | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 463,334 |
Expected timing of satisfaction period | 1 year |
Appalachia | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 70,595 |
Expected timing of satisfaction period | 1 year |
Appalachia | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 49,436 |
Expected timing of satisfaction period | 1 year |
Appalachia | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Expected timing of satisfaction period | 1 year |
EARNINGS PER LIMITED PARTNER _3
EARNINGS PER LIMITED PARTNER UNIT - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
EARNINGS PER LIMITED PARTNER UNIT | |||
Net income (loss) attributable to ARLP | $ 178,157 | $ (129,220) | $ 399,414 |
Distributions to participating securities | (2,334) | (4,254) | |
Undistributed earnings attributable to participating securities | (2,403) | (2,237) | |
Net income (loss) attributable to ARLP available to limited partners | $ 173,420 | $ (129,220) | $ 392,923 |
Weighted-average limited partner units outstanding - basic (in units) | 127,195,219 | 127,164,659 | 128,116,670 |
Earnings per limited partner unit - basic (in dollars per unit) | $ 1.36 | $ (1.02) | $ 3.07 |
Anti-dilutive under the treasury stock method (in units) | 1,967,672 | 773,664 | 1,284,013 |
EMPLOYEE BENEFIT PLANS - Define
EMPLOYEE BENEFIT PLANS - Defined Contribution (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PSSP | |||
Defined Contribution Plans | |||
Contribution expense | $ 17.7 | $ 16.1 | $ 21.1 |
EMPLOYEE BENEFIT PLANS - Benefi
EMPLOYEE BENEFIT PLANS - Benefit Obligations, Plan Assets and Reported Amounts (Details) - Defined benefit pension plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change in benefit obligations: | |||
Benefit obligations at beginning of year | $ 147,934 | $ 136,425 | |
Interest cost | 3,438 | 4,185 | $ 4,864 |
Actuarial loss (gain) | (6,406) | 12,396 | |
Benefits paid | (5,400) | (5,072) | |
Benefit obligations at end of year | 139,566 | 147,934 | 136,425 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 100,969 | 91,567 | |
Employer contribution | 3,312 | 1,739 | |
Actual return on plan assets | 15,095 | 12,735 | |
Benefits paid | (5,400) | (5,072) | |
Fair value of plan assets at end of year | 113,976 | 100,969 | $ 91,567 |
Funded status at the end of year | (25,590) | (46,965) | |
Amounts recognized in balance sheet: | |||
Non-current liability | (25,590) | (46,965) | |
Amount recognized in accumulated other comprehensive income consists of: | |||
Prior service cost | (568) | (754) | |
Net actuarial loss | (27,271) | (46,519) | |
Amounts recognized in accumulated other comprehensive income | $ (27,839) | $ (47,273) | |
Weighted-average assumption to determine benefit obligations | |||
Discount rate | 2.73% | 2.37% | |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 2.37% | 3.15% | |
Expected return on plan assets | 6.50% | 6.50% |
EMPLOYEE BENEFIT PLANS - Assump
EMPLOYEE BENEFIT PLANS - Assumptions (Details) - Defined benefit pension plan | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Asset allocation assumptions | ||
Active management premium percentage | 1.50% | |
Asset allocation assumption | 100.00% | |
Actual return on plan assets (as a percent) | 15.10% | 14.20% |
Equity securities | ||
Asset allocation assumptions | ||
Asset allocation assumption | 62.00% | |
Fixed income securities | ||
Asset allocation assumptions | ||
Asset allocation assumption | 33.00% | |
Real estate | ||
Asset allocation assumptions | ||
Asset allocation assumption | 5.00% |
EMPLOYEE BENEFIT PLANS - Period
EMPLOYEE BENEFIT PLANS - Periodic Benefit Cost and Other Changes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss: | |||
Total recognized in accumulated other comprehensive loss | $ 23,445 | $ (9,681) | $ (31,122) |
Defined benefit pension plan | |||
Components of net periodic benefit cost: | |||
Interest cost | 3,438 | 4,185 | 4,864 |
Expected return on plan assets | (6,580) | (5,861) | (4,932) |
Amortization of prior service cost | 186 | 186 | 186 |
Amortization of net loss | 4,327 | 4,128 | 3,922 |
Net periodic benefit cost | 1,371 | 2,638 | 4,040 |
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss: | |||
Net actuarial gain (loss) | 14,921 | (5,522) | (7,350) |
Reversal of amortization item: Prior service cost | 186 | 186 | 186 |
Reversal of amortization item: Net actuarial loss | 4,327 | 4,128 | 3,922 |
Total recognized in accumulated other comprehensive loss | 19,434 | (1,208) | (3,242) |
Net periodic benefit cost | (1,371) | (2,638) | $ (4,040) |
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | $ 18,063 | $ (3,846) |
EMPLOYEE BENEFIT PLANS - Estima
EMPLOYEE BENEFIT PLANS - Estimated Benefit Payments (Details) - Defined benefit pension plan $ in Thousands | Dec. 31, 2021USD ($) |
Estimated future benefit payments | |
2022 | $ 5,938 |
2023 | 6,190 |
2024 | 6,407 |
2025 | 6,591 |
2026 | 6,733 |
2027-2031 | 34,859 |
Estimated future benefit payments | 66,718 |
Expected contribution for pension plan in next year | $ 0 |
EMPLOYEE BENEFIT PLANS - Asset
EMPLOYEE BENEFIT PLANS - Asset Allocations (Details) - Defined benefit pension plan | Dec. 31, 2021 |
Equity securities | |
Employee Benefit Plans | |
Target allocation | 62.00% |
Equity securities | Minimum | |
Employee Benefit Plans | |
Target allocation | 45.00% |
Equity securities | Maximum | |
Employee Benefit Plans | |
Target allocation | 80.00% |
Fixed income securities | |
Employee Benefit Plans | |
Target allocation | 33.00% |
Fixed income securities | Minimum | |
Employee Benefit Plans | |
Target allocation | 10.00% |
Fixed income securities | Maximum | |
Employee Benefit Plans | |
Target allocation | 55.00% |
Real estate | |
Employee Benefit Plans | |
Target allocation | 5.00% |
Real estate | Minimum | |
Employee Benefit Plans | |
Target allocation | 0.00% |
Real estate | Maximum | |
Employee Benefit Plans | |
Target allocation | 10.00% |
EMPLOYEE BENEFIT PLANS - Fair V
EMPLOYEE BENEFIT PLANS - Fair Value of Plan Assets (Details) - Defined benefit pension plan - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | $ 113,976 | $ 100,969 | $ 91,567 |
Cash And Cash Equivalents | Quoted Prices In Active Markets For Identical Assets (Level 1) | |||
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | 4,426 | 3,888 | |
Equities - Global | Net asset value per share | |||
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | 24,868 | 17,549 | |
Equities - United States | Net asset value per share | |||
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | 41,140 | 31,835 | |
Equities - United States futures | Net asset value per share | |||
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | (2,055) | (2,616) | |
Equities - International developed markets | Net asset value per share | |||
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | 16,382 | 8,920 | |
Equities - International developed markets futures | Net asset value per share | |||
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | (16,260) | (4,921) | |
Equities - International emerging markets | Net asset value per share | |||
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | (3,363) | 6,600 | |
Equities - International emerging markets futures | Net asset value per share | |||
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | 7,024 | (975) | |
Fixed income - Investment grade | Net asset value per share | |||
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | 27,095 | 25,703 | |
Fixed income - High yield | Net asset value per share | |||
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | 177 | 10,056 | |
Fixed income - Emerging markets | Net asset value per share | |||
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | 2,664 | ||
Fixed income - Futures | Net asset value per share | |||
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | (689) | (1,265) | |
Real estate | Net asset value per share | |||
Employee Benefit Plans | |||
Defined benefit plan, fair value of plan assets | $ 15,231 | $ 3,531 |
COMMON UNIT-BASED COMPENSATIO_3
COMMON UNIT-BASED COMPENSATION PLANS - LTIP Grants (Details) - ARLP LTIP - USD ($) $ / shares in Units, $ in Thousands | Jan. 26, 2022 | Dec. 31, 2020 | Feb. 29, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Apr. 30, 2021 | Dec. 31, 2018 | |||
Number of units | ||||||||||||
Balance at the beginning of the period (in units) | 1,430,489 | 1,603,378 | 1,828,080 | |||||||||
Granted (in units) | 687,719 | 1,818,190 | [1] | 1,430,489 | 682,155 | 424,486 | ||||||
Vested (in units) | (919,524) | (885,381) | [2] | |||||||||
Grants canceled (in units) | [2] | (675,302) | ||||||||||
Forfeited (in units) | (118,204) | (8,552) | (21,476) | |||||||||
Balance at the end of the period (in units) | 1,430,489 | 3,130,475 | 1,430,489 | 1,603,378 | ||||||||
Weighted average grant date fair value per unit | ||||||||||||
Balance at the beginning of the period (in dollars per unit) | $ 5.02 | $ 20.39 | $ 17.18 | |||||||||
Granted (in dollars per unit) | 6.03 | [1] | 5.02 | 18.63 | ||||||||
Vested (in dollars per unit) | $ 21.70 | 12.38 | [2] | |||||||||
Grants canceled (in dollars per unit) | [2] | 18.62 | ||||||||||
Forfeited (in dollars per unit) | 5.48 | $ 20.16 | 20.84 | |||||||||
Balance at the end of the period (in dollars per unit) | $ 5.02 | $ 5.59 | $ 5.02 | $ 20.39 | ||||||||
Intrinsic value (in dollars) | ||||||||||||
Intrinsic value of outstanding grants (in dollars) | $ 6,409 | $ 39,569 | $ 6,409 | $ 17,349 | $ 31,699 | |||||||
Other information | ||||||||||||
Common units issued | 279,622 | 596,650 | ||||||||||
First Specified Minimum Guarantee | ||||||||||||
Other information | ||||||||||||
Guaranteed minimum (in shares) | 921,430 | |||||||||||
Guaranteed minimum (in dollars per unit) | $ 9.62 | $ 2.53 | ||||||||||
Second Specified Minimum Guarantee | ||||||||||||
Other information | ||||||||||||
Guaranteed minimum (in shares) | 896,760 | |||||||||||
Guaranteed minimum (in dollars per unit) | $ 6.41 | $ 3.79 | ||||||||||
2018 Grants | ||||||||||||
Number of units | ||||||||||||
Vested (in units) | (495,038) | |||||||||||
2019 Grants | ||||||||||||
Number of units | ||||||||||||
Grants canceled (in units) | 675,302 | |||||||||||
2020 Grants | ||||||||||||
Number of units | ||||||||||||
Granted (in units) | 578,114 | |||||||||||
[1] | In December 2020, we modified the vesting requirements for certain restricted units that we granted in February 2020 which were determined to be improbable of vesting under the original vesting requirements (the "2020 Grants"). The new vesting requirements make it probable the modified restricted units will vest. Also in December 2020, an additional 578,114 restricted units under these modified vesting requirements were granted. The grant date fair value reflects the modification date fair value for those awards that were modified. | |||||||||||
[2] | During the year ended December 31, 2019, we issued 596,650 unrestricted common units to LTIP participants. The remaining vested units were settled in cash to satisfy tax withholding obligations of the LTIP participants. |
COMMON UNIT-BASED COMPENSATIO_4
COMMON UNIT-BASED COMPENSATION PLANS - LTIP Other (Details) - USD ($) $ in Thousands | Jan. 26, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Other information | ||||
Cash settlement of grants | $ 2,490 | |||
ARLP LTIP | ||||
Other information | ||||
Unit-based compensation expense | $ 5,400 | 8,100 | $ 10,400 | |
Reduction in compensation expense | 1,000 | |||
Total unit-based obligation recorded | 6,700 | $ 1,300 | ||
Unrecognized compensation expense (in dollars) | $ 10,800 | |||
Weighted-average period for recognition of expense | 1 year 7 months 6 days | |||
Additional grants authorized (in units) | 694,919 | |||
2018 Grants | ARLP LTIP | ||||
Other information | ||||
Incremental compensation cost | $ 5,400 | |||
2019 Grants | ARLP LTIP | ||||
Other information | ||||
Reversal of cumulative previously recognized expenses | $ 4,800 |
COMMON UNIT-BASED COMPENSATIO_5
COMMON UNIT-BASED COMPENSATION PLANS - SERP and Directors Comp (Details) - SERP and Deferred Compensation Plans - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Other information | |||||
Unit-based compensation expense | $ 400 | $ 700 | $ 1,600 | ||
Total unit-based obligation recorded | $ 13,500 | $ 16,800 | |||
Phantom Share Units (PSUs) | |||||
Number of units | |||||
Balance at the beginning of the period (in units) | 760,630 | 631,365 | 635,837 | ||
Granted (in units) | 46,638 | 129,265 | 111,012 | ||
Issued (in units) | (138,570) | (115,484) | [1] | ||
Balance at the end of the period (in units) | 668,698 | 760,630 | 631,365 | ||
Weighted average grant date fair value per unit | |||||
Balance at the beginning of the period (in dollars per unit) | $ 22.04 | $ 25.48 | $ 27.34 | ||
Granted (in dollars per unit) | 9.45 | 5.25 | 14.50 | ||
Issued (in dollars per unit) | 25.86 | 25.20 | [1] | ||
Balance at the end of the period (in dollars per unit) | $ 20.13 | $ 22.04 | $ 25.48 | ||
Intrinsic value of outstanding grants (in dollars) | $ 8,452 | $ 3,408 | $ 6,831 | $ 11,025 | |
Other information | |||||
Common units issued | 102,962 | 115,484 | |||
[1] | During the years ended December 31, 2021 and 2019, we issued ARLP common units that we purchased on the open market of 102,962 and 115,484 , respectively, to participants under the SERP and Directors' Deferred Compensation Plan . Units issued in 2021 were net of units settled in cash to satisfy tax withholding obligations. |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Paid For: | |||
Interest | $ 36,402 | $ 44,226 | $ 43,093 |
Income taxes | 11 | 12 | |
Non-Cash Activity: | |||
Accounts payable for purchase of property, plant and equipment | 8,325 | 5,731 | 14,504 |
Right-of-use assets acquired by operating lease | 189 | 278 | 25,593 |
Market value of common units issued under deferred compensation plans before tax withholding requirements | $ 1,082 | $ 3,837 | $ 17,415 |
ASSET RETIREMENT OBLIGATIONS -
ASSET RETIREMENT OBLIGATIONS - Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Asset retirement and mine closing liability | |||
Balance at the beginning of the period | $ 127,898 | $ 137,514 | |
Accretion expense | 3,688 | 4,033 | $ 4,087 |
Payments | (1,383) | (1,769) | |
Allocation of liability associated with acquisitions, mine development and change in assumptions | 896 | (11,880) | |
Balance at the end of the period | $ 131,099 | $ 127,898 | $ 137,514 |
ASSET RETIREMENT OBLIGATIONS _2
ASSET RETIREMENT OBLIGATIONS - Estimated Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Estimated payments of asset retirement obligations: | |||
2022 | $ 7,582 | ||
2023 | 2,232 | ||
2024 | 558 | ||
2025 | 3,788 | ||
2026 | 7,256 | ||
Thereafter | 208,021 | ||
Aggregate undiscounted asset retirement obligations | 229,437 | ||
Effect of discounting | (98,338) | $ (102,100) | |
Total asset retirement obligations | 131,099 | 127,898 | $ 137,514 |
Less: current portion | (7,582) | ||
Asset retirement obligations | 123,517 | 121,487 | |
Surety bonds outstanding to performance of reclamation obligations | $ 173,900 | $ 171,100 |
ACCRUED WORKERS' COMPENSATION_3
ACCRUED WORKERS' COMPENSATION AND PNEUMOCONIOSIS BENEFITS - Workers' Compensation Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in the workers' compensation liability | ||
Beginning balance | $ 54,739 | $ 53,384 |
Accruals increase | 5,168 | 5,146 |
Payments | (10,725) | (8,482) |
Interest accretion | 926 | 1,278 |
Valuation loss | 3,340 | 3,413 |
Ending balance | $ 53,448 | $ 54,739 |
Estimated present value of future obligations and other information | ||
Workers' compensation discount rate | 2.41% | 1.95% |
Letters of credit outstanding to secure workers compensation obligations | $ 100,400 | $ 95,200 |
Other long-term assets | ||
Estimated present value of future obligations and other information | ||
Receivables for traumatic injury claims | $ 5,700 | $ 7,100 |
ACCRUED WORKERS' COMPENSATION_4
ACCRUED WORKERS' COMPENSATION AND PNEUMOCONIOSIS BENEFITS - Benefit Obligations (Details) - Pneumoconiosis benefits - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of the changes in black lung benefit obligations | |||
Benefit obligations at beginning of year | $ 108,496 | $ 97,683 | |
Service cost | 4,021 | 3,526 | $ 2,593 |
Interest cost | 2,545 | 2,998 | 3,044 |
Actuarial loss | 161 | 7,787 | |
Benefits and expenses paid | (3,907) | (3,498) | |
Benefit obligations at end of year | $ 111,316 | $ 108,496 | $ 97,683 |
ACCRUED WORKERS' COMPENSATION_5
ACCRUED WORKERS' COMPENSATION AND PNEUMOCONIOSIS BENEFITS - Recognized in AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss: | |||
Total recognized in accumulated other comprehensive loss | $ 23,445 | $ (9,681) | $ (31,122) |
Pneumoconiosis benefits | |||
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss: | |||
Net actuarial loss | (161) | (7,787) | (23,298) |
Reversal of amortization item: Net actuarial loss (gain) | 4,172 | (686) | (4,582) |
Total recognized in accumulated other comprehensive loss | $ 4,011 | $ (8,473) | $ (27,880) |
Estimated present value of future obligations and other information | |||
Pneumoconiosis discount rate | 2.73% | 2.38% | 3.12% |
Amount recognized in accumulated other comprehensive income consists of: | |||
Net actuarial loss | $ 36,388 | $ 40,399 | $ 31,927 |
ACCRUED WORKERS' COMPENSATION_6
ACCRUED WORKERS' COMPENSATION AND PNEUMOCONIOSIS BENEFITS - Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ACCRUED WORKERS' COMPENSATION AND PNEUMOCONIOSIS BENEFITS | |||
Workers' compensation claims | $ 53,448 | $ 54,739 | $ 53,384 |
Pneumoconiosis benefit claims | 111,316 | 108,496 | |
Total obligations | 164,764 | 163,235 | |
Less current portion | (12,293) | (10,646) | |
Non-current obligations | $ 152,471 | $ 152,589 |
ACCRUED WORKERS' COMPENSATION_7
ACCRUED WORKERS' COMPENSATION AND PNEUMOCONIOSIS BENEFITS - Expense (Details) - Pneumoconiosis benefits - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Black lung benefits: | |||
Service cost | $ 4,021 | $ 3,526 | $ 2,593 |
Interest cost | 2,545 | 2,998 | 3,044 |
Net amortization | 4,172 | (686) | (4,582) |
Total pneumoconiosis expense | 19,077 | 18,143 | 18,596 |
Workers' compensation expense | 8,339 | 12,305 | 17,541 |
Net periodic benefit cost | $ 10,738 | $ 5,838 | $ 1,055 |
RELATED-PARTY TRANSACTIONS - Li
RELATED-PARTY TRANSACTIONS - Line of Credit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Nov. 04, 2021 | Feb. 19, 2021 | |
Related Party Transaction | |||
Proceeds from line of credit | $ 5,340 | ||
Payments under line of credit | 5,340 | ||
Line of credit | |||
Related Party Transaction | |||
Maximum borrowing capacity | $ 5,500 | $ 5,000 | |
Interest rate (as a percent) | 3.50% | ||
Proceeds from line of credit | 5,300 | ||
Payments under line of credit | $ 5,300 |
RELATED-PARTY TRANSACTIONS - Af
RELATED-PARTY TRANSACTIONS - Affiliate Royalty Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction | |||
As of the beginning of period | $ 48,389 | ||
As of the end of period | 55,613 | $ 48,389 | |
Coal lease | |||
Related Party Transaction | |||
As of the beginning of period | 48,389 | 41,216 | $ 32,645 |
Payments | 13,817 | 13,819 | 15,317 |
Recoupment | (4,025) | (4,078) | (4,178) |
Unrecoupable | (2,568) | (2,568) | (2,568) |
As of the end of period | 55,613 | 48,389 | 41,216 |
Tunnel Ridge | |||
Related Party Transaction | |||
As of the beginning of period | 1,500 | 1,500 | |
Payments | 3,000 | 3,000 | 4,500 |
Recoupment | (3,000) | (3,000) | (3,000) |
As of the end of period | 1,500 | 1,500 | 1,500 |
WKY CoalPlay | December 2014 coal lease - Henderson and Union Counties, Kentucky | |||
Related Party Transaction | |||
As of the beginning of period | 19,178 | 16,603 | 14,077 |
Payments | 3,597 | 3,597 | 3,597 |
Recoupment | (1,025) | (1,022) | (1,071) |
As of the end of period | 21,750 | 19,178 | 16,603 |
WKY CoalPlay | December 2014 coal lease - Webster County, Kentucky | |||
Related Party Transaction | |||
Payments | 2,568 | 2,568 | 2,568 |
Unrecoupable | (2,568) | (2,568) | (2,568) |
WKY CoalPlay | December 2014 coal lease - Henderson County, Kentucky | |||
Related Party Transaction | |||
As of the beginning of period | 15,129 | 12,607 | 10,086 |
Payments | 2,521 | 2,522 | 2,521 |
As of the end of period | 17,650 | 15,129 | 12,607 |
WKY CoalPlay | February 2015 coal lease - Henderson and Union Counties, Kentucky | |||
Related Party Transaction | |||
As of the beginning of period | 12,582 | 10,506 | 8,482 |
Payments | 2,131 | 2,132 | 2,131 |
Recoupment | (56) | (107) | |
As of the end of period | $ 14,713 | $ 12,582 | $ 10,506 |
RELATED-PARTY TRANSACTIONS - _2
RELATED-PARTY TRANSACTIONS - Affiliate Royalty Agreements - Craft Foundations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Tunnel Ridge | ||||
Related Party Transaction | ||||
Payments for earned royalties | $ 5.8 | $ 6.1 | $ 7.2 | |
Tunnel Ridge | ||||
Related Party Transaction | ||||
Annual minimum coal royalties | $ 3 | |||
Tunnel Ridge | Joseph W Craft III Foundation | Tunnel Ridge | ||||
Related Party Transaction | ||||
Property ownership (as a percent) | 50.00% | |||
Tunnel Ridge | Kathleen S Craft Foundation | Tunnel Ridge | ||||
Related Party Transaction | ||||
Property ownership (as a percent) | 50.00% |
RELATED-PARTY TRANSACTIONS - WK
RELATED-PARTY TRANSACTIONS - WKY CoalPlay and Cavalier Minerals (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2015 | Dec. 31, 2014 | Dec. 31, 2021 | Jan. 03, 2019 | |
WKY CoalPlay | February 2015 coal lease - Henderson and Union Counties, Kentucky | ||||
Related Party Transaction | ||||
Initial term of lease | 20 years | |||
Percentage of earned royalty on coal sale price | 4.00% | |||
Annual minimum coal royalties | $ 2.1 | |||
Period for option to acquire the leased reserves | 3 years | |||
Percentage of internal rate of return on purchase price, if leased reserves acquired | 7.00% | |||
WKY CoalPlay | December 2014 coal lease - Henderson and Union Counties, Kentucky | ||||
Related Party Transaction | ||||
Initial term of lease | 20 years | |||
Percentage of earned royalty on coal sale price | 4.00% | |||
Annual minimum coal royalties | $ 3.6 | |||
Period for option to acquire the leased reserves | 3 years | |||
Percentage of internal rate of return on purchase price, if leased reserves acquired | 7.00% | |||
WKY CoalPlay | December 2014 coal lease - Webster County, Kentucky | ||||
Related Party Transaction | ||||
Initial term of lease | 7 years | |||
Percentage of earned royalty on coal sale price | 4.00% | |||
Annual minimum coal royalties | $ 2.6 | |||
Period for option to acquire the leased reserves | 3 years | |||
Percentage of internal rate of return on purchase price, if leased reserves acquired | 7.00% | |||
WKY CoalPlay | December 2014 coal lease - Henderson County, Kentucky | ||||
Related Party Transaction | ||||
Annual minimum coal royalties | $ 2.5 | |||
Cavalier Minerals | ||||
Related Party Transaction | ||||
Ownership interest in VIE (as a percent) | 96.00% | |||
Cavalier Minerals | Bluegrass Minerals | ||||
Related Party Transaction | ||||
Noncontrolling ownership interest (as a percent) | 4.00% | 4.00% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Purchase Commitments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Commitments for external coal purchases | |
Contractual Commitments | |
Commitments to purchase coal | $ 0 |
Commitments related to planned capital projects | |
Contractual Commitments | |
Contractual amount | $ 85.7 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Insurance (Details) - Property and casualty insurance $ in Millions | Oct. 01, 2020USD ($) |
Commitments And Contingencies | |
Aggregate maximum insurance limit | $ 100 |
Insurance deductible | $ 1.5 |
Waiting period one | 75 days |
Waiting period | 90 days |
Overall aggregate deductible | $ 10 |
Percentage of participating interest in commercial property insurance program | 10.00% |
CONCENTRATION OF CREDIT RISK _3
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Major Customers | |||
Revenues | $ 1,569,976 | $ 1,328,129 | $ 1,961,720 |
Trade receivables | $ 129,531 | $ 104,579 | |
Revenue | Geographic Concentration Risk | End users in Europe, Africa, Asia, North America and South America | |||
Major Customers | |||
Concentration of risk (as a percent) | 12.50% | 3.30% | 17.90% |
Revenue | Customer Concentration Risk | Customer A | |||
Major Customers | |||
Revenues | $ 239,482 | $ 197,379 | $ 228,500 |
Revenue | Customer Concentration Risk | Customer B | |||
Major Customers | |||
Revenues | $ 213,319 | ||
Revenue | Customer Concentration Risk | Customer C | |||
Major Customers | |||
Revenues | 157,271 | ||
Revenue | Customer Concentration Risk | Customer D | |||
Major Customers | |||
Revenues | 137,785 | ||
Trade accounts receivable | Customer Concentration Risk | Major Customers | |||
Major Customers | |||
Trade receivables | $ 10,800 | $ 32,000 |
SEGMENT INFORMATION - General (
SEGMENT INFORMATION - General (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
SEGMENT INFORMATION | |
Number of reportable segments | 4 |
Number Of Coal Reportable Segments | 2 |
Number Of Mining Complex | 7 |
SEGMENT INFORMATION - Segment R
SEGMENT INFORMATION - Segment Results (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reportable segment results | |||
Revenues | $ 1,569,976 | $ 1,328,129 | $ 1,961,720 |
Segment Adjusted EBITDA Expense | 952,649 | 861,249 | 1,204,896 |
Segment Adjusted EBITDA | 549,252 | 446,489 | 672,001 |
Total assets | 2,159,406 | 2,166,016 | 2,586,694 |
Capital expenditures | 122,984 | 121,101 | 305,858 |
Illinois Basin | |||
Reportable segment results | |||
Revenues | 919,597 | 769,957 | 1,236,291 |
Segment Adjusted EBITDA Expense | 613,303 | 543,264 | 791,795 |
Segment Adjusted EBITDA | 265,292 | 213,876 | 349,810 |
Total assets | 676,091 | 738,315 | 1,092,188 |
Capital expenditures | 60,166 | 48,636 | 188,928 |
Appalachia | |||
Reportable segment results | |||
Revenues | 545,539 | 500,330 | 644,389 |
Segment Adjusted EBITDA Expense | 344,332 | 320,656 | 424,387 |
Segment Adjusted EBITDA | 172,601 | 171,362 | 215,187 |
Total assets | 420,144 | 440,815 | 489,378 |
Capital expenditures | 47,577 | 70,960 | 111,729 |
Oil & Gas Royalties | |||
Reportable segment results | |||
Revenues | 77,185 | 43,141 | 53,036 |
Segment Adjusted EBITDA Expense | 9,943 | 4,106 | 7,811 |
Segment Adjusted EBITDA | 68,774 | 39,773 | 46,997 |
Total assets | 630,627 | 613,916 | 643,213 |
Coal Royalties | |||
Reportable segment results | |||
Revenues | 51,471 | 42,217 | 57,760 |
Segment Adjusted EBITDA Expense | 18,269 | 18,249 | 21,445 |
Segment Adjusted EBITDA | 33,202 | 23,968 | 36,315 |
Total assets | 285,943 | 288,525 | 292,436 |
Capital expenditures | 45 | 12 | 352 |
Other, Corporate and Elimination | |||
Reportable segment results | |||
Revenues | (23,816) | (27,516) | (29,756) |
Segment Adjusted EBITDA Expense | (33,198) | (25,026) | (40,542) |
Segment Adjusted EBITDA | 9,383 | (2,490) | 23,692 |
Total assets | 146,601 | 84,445 | 69,479 |
Capital expenditures | 15,196 | 1,493 | 4,849 |
Operating segments | |||
Reportable segment results | |||
Revenues | 1,569,976 | 1,328,129 | 1,961,720 |
Operating segments | Illinois Basin | |||
Reportable segment results | |||
Revenues | 919,597 | 769,957 | 1,219,601 |
Operating segments | Appalachia | |||
Reportable segment results | |||
Revenues | 545,539 | 500,330 | 644,389 |
Operating segments | Oil & Gas Royalties | |||
Reportable segment results | |||
Revenues | 77,185 | 43,141 | 53,036 |
Operating segments | Coal Royalties | |||
Reportable segment results | |||
Revenues | 69 | 105 | 23 |
Operating segments | Other, Corporate and Elimination | |||
Reportable segment results | |||
Revenues | 27,586 | 14,596 | 44,671 |
Elimination | Illinois Basin | |||
Reportable segment results | |||
Revenues | 16,690 | ||
Elimination | Coal Royalties | |||
Reportable segment results | |||
Revenues | 51,402 | 42,112 | 57,737 |
Elimination | Other, Corporate and Elimination | |||
Reportable segment results | |||
Revenues | $ (51,402) | $ (42,112) | $ (74,427) |
SEGMENT INFORMATION - EBITDA Ex
SEGMENT INFORMATION - EBITDA Expense Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of consolidated Segment Adjusted EBITDA Expense | |||
Segment Adjusted EBITDA Expense | $ 952,649 | $ 861,249 | $ 1,204,896 |
Outside coal purchases | (6,372) | (23,357) | |
Other expense | (3,020) | (1,593) | 561 |
Operating expenses (excluding depreciation, depletion and amortization) | $ 943,257 | $ 859,656 | $ 1,182,100 |
SEGMENT INFORMATION - EBITDA Re
SEGMENT INFORMATION - EBITDA Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of consolidated Segment Adjusted EBITDA to net income | |||
Consolidated Segment Adjusted EBITDA | $ 549,252 | $ 446,489 | $ 672,001 |
General and administrative | (70,160) | (59,806) | (72,997) |
Depreciation, depletion and amortization | (261,377) | (313,387) | (309,075) |
Asset impairment | (24,977) | (15,190) | |
Goodwill impairment | 0 | (132,026) | 0 |
Interest expense, net | (39,141) | (45,478) | (45,496) |
Acquisition gain | 177,043 | ||
Income tax (expense) benefit | (417) | (35) | 211 |
Acquisition gain attributable to noncontrolling interest | (7,083) | ||
NET INCOME (LOSS) ATTRIBUTABLE TO ARLP | 178,157 | (129,220) | 399,414 |
Noncontrolling interest | 598 | 169 | 7,512 |
NET INCOME (LOSS) | $ 178,755 | $ (129,051) | $ 406,926 |
SCHEDULE I - CONDENSED FINANCIA
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 122,403 | $ 55,574 | |
Total current assets | 339,228 | 245,774 | |
OTHER ASSETS: | |||
Total other assets | 121,500 | 119,997 | |
TOTAL ASSETS | 2,159,406 | 2,166,016 | $ 2,586,694 |
CURRENT LIABILITIES: | |||
Accrued taxes other than income taxes | 17,787 | 25,054 | |
Total current liabilities | 177,577 | 214,605 | |
Total liabilities | 933,337 | 1,093,749 | |
PARTNERS' CAPITAL: | |||
Limited Partners - Common Unitholders 127,195,219 units outstanding | 1,279,183 | 1,148,565 | |
TOTAL LIABILITIES AND PARTNERS' CAPITAL | 2,159,406 | 2,166,016 | |
AHGP as the parent company | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | 2,173 | 2,174 | |
Total current assets | 2,173 | 2,174 | |
OTHER ASSETS: | |||
Investments in consolidated subsidiaries | 1,277,110 | 1,146,491 | |
Total other assets | 1,277,110 | 1,146,491 | |
TOTAL ASSETS | 1,279,283 | 1,148,665 | |
CURRENT LIABILITIES: | |||
Accrued taxes other than income taxes | 100 | 100 | |
Total current liabilities | 100 | 100 | |
Total liabilities | 100 | 100 | |
PARTNERS' CAPITAL: | |||
Limited Partners - Common Unitholders 127,195,219 units outstanding | 1,279,183 | 1,148,565 | |
TOTAL LIABILITIES AND PARTNERS' CAPITAL | $ 1,279,283 | $ 1,148,665 |
SCHEDULE I - CONDENSED FINANC_2
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - CONDENSED BALANCE SHEETS (Parenthetical) (Details) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Condensed Financial Statements, Captions [Line Items] | ||
Common units outstanding | 127,195,219 | 127,195,219 |
AHGP as the parent company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common units outstanding | 127,195,219 | 127,195,219 |
SCHEDULE I - CONDENSED FINANC_3
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - CONDENSED STATEMENT OF OPERATIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
EXPENSES: | |||
General and administrative | $ 70,160 | $ 59,806 | $ 72,997 |
Total operating expenses | 1,350,773 | 1,410,981 | 1,702,222 |
INCOME (LOSS) FROM OPERATIONS | 219,203 | (82,852) | 259,498 |
Interest income | 88 | 135 | 379 |
NET INCOME (LOSS) ATTRIBUTABLE TO ARLP | $ 178,157 | $ (129,220) | $ 399,414 |
EARNINGS PER LIMITED PARTNER UNIT - BASIC (in dollars per unit) | $ 1.36 | $ (1.02) | $ 3.07 |
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING - BASIC (in units) | 127,195,219 | 127,164,659 | 128,116,670 |
AHGP as the parent company | |||
EXPENSES: | |||
General and administrative | $ 41 | ||
Total operating expenses | 41 | ||
INCOME (LOSS) FROM OPERATIONS | (41) | ||
Interest income | $ 24 | 34 | |
Equity in earnings of consolidated subsidiaries | $ 178,157 | (129,244) | 399,421 |
NET INCOME (LOSS) ATTRIBUTABLE TO ARLP | $ 178,157 | $ (129,220) | $ 399,414 |
EARNINGS PER LIMITED PARTNER UNIT - BASIC (in dollars per unit) | $ 1.36 | $ (1.02) | $ 3.07 |
EARNINGS PER LIMITED PARTNER UNIT - DILUTED (in dollars per unit) | $ 1.36 | $ (1.02) | $ 3.07 |
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING - BASIC (in units) | 127,195,219 | 127,164,659 | 128,116,670 |
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING - DILUTED (in units) | 127,195,219 | 127,164,659 | 128,116,670 |
SCHEDULE I - CONDENSED FINANC_4
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - CONDENSED STATEMENT OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
CASH FLOWS FROM OPERATING ACTIVITIES | $ 425,202 | $ 400,645 | $ 514,895 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Distributions paid to Partners | (52,158) | (51,753) | (278,425) |
Net cash used in financing activities | (215,685) | (256,429) | (234,447) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 66,829 | 19,092 | (207,668) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 55,574 | 36,482 | 244,150 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 122,403 | 55,574 | 36,482 |
AHGP as the parent company | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
CASH FLOWS FROM OPERATING ACTIVITIES | 52,157 | 51,751 | 278,308 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Distributions paid to Partners | (52,158) | (51,753) | (278,425) |
Net cash used in financing activities | (52,158) | (51,753) | (278,425) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (1) | (2) | (117) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 2,174 | 2,176 | 2,293 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 2,173 | $ 2,174 | $ 2,176 |
SCHEDULE I - CONDENSED FINANC_5
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Maximum undiscounted future payment obligation | $ 146.7 | ||
AHGP as the parent company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash contribution by affiliated entity | $ 52.2 | $ 51.8 | $ 278.4 |