Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 07, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Units Outstanding | 128,061,981 | |
Entity Central Index Key | 0001086600 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 203,703 | $ 59,813 |
Trade receivables | 226,436 | 282,622 |
Other receivables | 9,677 | 9,678 |
Inventories, net | 196,225 | 127,556 |
Advance royalties | 6,173 | 7,780 |
Digital assets | 28,335 | 9,579 |
Prepaid expenses and other assets | 14,492 | 19,093 |
Total current assets | 685,041 | 516,121 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Property, plant and equipment, at cost | 4,350,389 | 4,172,544 |
Less accumulated depreciation, depletion and amortization | (2,240,277) | (2,149,881) |
Total property, plant and equipment, net | 2,110,112 | 2,022,663 |
OTHER ASSETS: | ||
Advance royalties | 77,518 | 71,125 |
Equity method investments | 45,088 | 46,503 |
Equity securities | 92,541 | 92,541 |
Operating lease right-of-use assets | 16,694 | 16,569 |
Other long-term assets | 25,952 | 22,904 |
Total other assets | 257,793 | 249,642 |
TOTAL ASSETS | 3,052,946 | 2,788,426 |
CURRENT LIABILITIES: | ||
Accounts payable | 131,547 | 108,269 |
Accrued taxes other than income taxes | 22,291 | 21,007 |
Accrued payroll and related expenses | 31,569 | 29,884 |
Accrued interest | 1,821 | 3,558 |
Workers' compensation and pneumoconiosis benefits | 15,856 | 15,913 |
Other current liabilities | 46,061 | 28,498 |
Current maturities, long-term debt, net | 22,029 | 20,338 |
Total current liabilities | 271,174 | 227,467 |
LONG-TERM LIABILITIES: | ||
Long-term debt, excluding current maturities, net | 461,995 | 316,821 |
Pneumoconiosis benefits | 130,187 | 127,249 |
Accrued pension benefit | 7,620 | 8,618 |
Workers' compensation | 36,532 | 37,257 |
Asset retirement obligations | 148,284 | 146,925 |
Long-term operating lease obligations | 14,107 | 13,661 |
Deferred income tax liabilities | 32,758 | 33,450 |
Other liabilities | 16,171 | 18,381 |
Total long-term liabilities | 847,654 | 702,362 |
Total liabilities | 1,118,828 | 929,829 |
COMMITMENTS AND CONTINGENCIES - (NOTE 4) | ||
ARLP Partners' Capital: | ||
Limited Partners - Common Unitholders 128,061,981 and 127,125,437 units outstanding, respectively | 1,970,759 | 1,896,027 |
Accumulated other comprehensive loss | (59,645) | (61,525) |
Total ARLP Partners' Capital | 1,911,114 | 1,834,502 |
Noncontrolling interest | 23,004 | 24,095 |
Total Partners' Capital | 1,934,118 | 1,858,597 |
TOTAL LIABILITIES AND PARTNERS' CAPITAL | $ 3,052,946 | $ 2,788,426 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Jun. 30, 2024 | Dec. 31, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common units outstanding | 128,061,981 | 127,125,437 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
SALES AND OPERATING REVENUES: | ||||
Revenues | $ 593,350 | $ 641,836 | $ 1,245,047 | $ 1,304,758 |
EXPENSES: | ||||
Outside coal purchases | 10,608 | 4,209 | 19,720 | 4,209 |
General and administrative | 20,562 | 20,130 | 42,691 | 41,215 |
Depreciation, depletion and amortization | 66,454 | 68,639 | 132,003 | 134,189 |
Total operating expenses | 475,930 | 457,907 | 967,332 | 913,503 |
INCOME FROM OPERATIONS | 117,420 | 183,929 | 277,715 | 391,255 |
Interest expense | (9,277) | (9,433) | (17,026) | (22,109) |
Interest income | 2,084 | 2,625 | 3,360 | 5,415 |
Equity method investment loss | (152) | (1,994) | (705) | (1,942) |
Change in fair value of digital assets | (3,748) | 8,105 | ||
Other income (expense) | (958) | 177 | (1,564) | (396) |
INCOME BEFORE INCOME TAXES | 105,369 | 175,304 | 269,885 | 372,223 |
INCOME TAX EXPENSE | 3,860 | 3,999 | 8,809 | 8,240 |
NET INCOME | 101,509 | 171,305 | 261,076 | 363,983 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | (1,322) | (1,515) | (2,832) | (3,008) |
NET INCOME ATTRIBUTABLE TO ARLP | 100,187 | 169,790 | 258,244 | 360,975 |
NET INCOME ATTRIBUTABLE TO ARLP | ||||
GENERAL PARTNER | 1,384 | |||
LIMITED PARTNERS | $ 100,187 | $ 169,790 | $ 258,244 | $ 359,591 |
EARNINGS PER LIMITED PARTNER UNIT - BASIC (in dollars per unit) | $ 0.77 | $ 1.30 | $ 1.98 | $ 2.75 |
EARNINGS PER LIMITED PARTNER UNIT - DILUTED (in dollars per unit) | $ 0.77 | $ 1.30 | $ 1.98 | $ 2.75 |
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING - BASIC (in units) | 128,061,981 | 127,183,439 | 127,866,439 | 127,236,097 |
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING - DILUTED (in units) | 128,062,000 | 127,183,000 | 127,866,000 | 127,236,000 |
Product | ||||
EXPENSES: | ||||
Operating expenses (excluding depreciation, depletion and amortization) | $ 351,605 | $ 334,402 | $ 715,464 | $ 673,125 |
Coal sales | ||||
SALES AND OPERATING REVENUES: | ||||
Revenues | 512,659 | 560,331 | 1,074,538 | 1,139,115 |
Oil & gas royalties | ||||
SALES AND OPERATING REVENUES: | ||||
Revenues | 36,429 | 33,087 | 73,459 | 67,584 |
Transportation | ||||
SALES AND OPERATING REVENUES: | ||||
Revenues | 26,701 | 30,527 | 57,454 | 60,765 |
EXPENSES: | ||||
Operating expenses (excluding depreciation, depletion and amortization) | 26,701 | 30,527 | 57,454 | 60,765 |
Other revenues | ||||
SALES AND OPERATING REVENUES: | ||||
Revenues | $ 17,561 | $ 17,891 | $ 39,596 | $ 37,294 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||
Interest expense, interest capitalized | $ 2,786 | $ 1,216 | $ 5,084 | $ 2,623 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
NET INCOME | $ 101,509 | $ 171,305 | $ 261,076 | $ 363,983 |
OTHER COMPREHENSIVE INCOME: | ||||
OTHER COMPREHENSIVE INCOME | 957 | 563 | 1,880 | 1,128 |
COMPREHENSIVE INCOME | 102,466 | 171,868 | 262,956 | 365,111 |
Less: Comprehensive income attributable to noncontrolling interest | (1,322) | (1,515) | (2,832) | (3,008) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO ARLP | 101,144 | 170,353 | 260,124 | 362,103 |
Defined benefit pension plan | ||||
OTHER COMPREHENSIVE INCOME: | ||||
Amortization of prior service cost (1) | 46 | 46 | 93 | 93 |
Amortization of net actuarial loss (1) | 72 | 171 | 109 | 344 |
Total recognized in accumulated other comprehensive Income | 118 | 217 | 202 | 437 |
Pneumoconiosis benefits | ||||
OTHER COMPREHENSIVE INCOME: | ||||
Amortization of net actuarial loss (1) | 839 | 346 | 1,678 | 691 |
Total recognized in accumulated other comprehensive Income | $ 839 | $ 346 | $ 1,678 | $ 691 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
CASH FLOWS FROM OPERATING ACTIVITIES | $ 425,439 | $ 500,720 | |
Property, plant and equipment: | |||
Capital expenditures | (225,288) | (185,017) | |
Change in accounts payable and accrued liabilities | 4,944 | (25,630) | |
Proceeds from sale of property, plant and equipment | 969 | 2,468 | |
Contributions to equity method investments | (1,290) | (1,334) | |
JC Resources acquisition | (64,999) | ||
Oil & gas reserve asset acquisitions | (4,720) | (3,935) | |
Other | 2,392 | 4,136 | |
Net cash used in investing activities | (222,993) | (274,311) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under securitization facility | 75,000 | ||
Payments under securitization facility | (75,000) | ||
Proceeds from equipment financings | 54,626 | ||
Payments on equipment financings | (5,935) | (7,565) | |
Borrowings under revolving credit facilities | 20,000 | ||
Payments under revolving credit facilities | (20,000) | ||
Borrowing under long-term debt | 400,000 | 75,000 | |
Payments on long-term debt | (292,811) | (65,474) | |
Payment of debt issuance costs | (11,379) | (11,744) | |
Payments for purchases of units under unit repurchase program | (19,432) | ||
Payments for tax withholdings related to settlements under deferred compensation plans | (13,292) | (10,334) | |
Excess purchase price over the contributed basis from JC Resources acquisition | (7,251) | ||
Cash retained by JC Resources in acquisition | (2,933) | ||
Distributions paid to Partners | (181,982) | (182,868) | $ (364,579) |
Other | (7,783) | (4,932) | |
Net cash used in financing activities | (58,556) | (237,533) | |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 143,890 | (11,124) | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 59,813 | 296,023 | 296,023 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 203,703 | 284,899 | $ 59,813 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Cash paid for interest | 21,025 | 20,242 | |
Cash paid for income taxes | 11,309 | 5,760 | |
SUPPLEMENTAL NON-CASH ACTIVITY: | |||
Accounts payable for purchase of property, plant and equipment | 19,530 | 18,651 | |
Right-of-use assets acquired by operating lease | 716 | 2,280 | |
Market value of common units issued under deferred compensation plans before tax withholding requirements | $ 32,566 | $ 28,906 |
ORGANIZATION AND PRESENTATION
ORGANIZATION AND PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
ORGANIZATION AND PRESENTATION | |
ORGANIZATION AND PRESENTATION | 1. ORGANIZATION AND PRESENTATION Significant Relationships Referenced in Notes to Condensed Consolidated Financial Statements ● References to "we," "us," "our" or "ARLP Partnership" mean the business and operations of Alliance Resource Partners, L.P., the parent company, as well as its consolidated subsidiaries. ● References to "ARLP" mean Alliance Resource Partners, L.P., individually as the parent company, and not on a consolidated basis. ● References to "MGP" mean Alliance Resource Management GP, LLC, ARLP's general partner. ● References to "Intermediate Partnership" mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P. ● References to "Alliance Coal" mean Alliance Coal, LLC, an indirect wholly owned subsidiary of ARLP. ● References to "Alliance Minerals" mean Alliance Minerals, LLC, an indirect wholly owned subsidiary of ARLP. ● References to "Alliance Resource Properties" mean Alliance Resource Properties, LLC, an indirect wholly owned subsidiary of ARLP. Organization ARLP is a Delaware limited partnership listed on the NASDAQ Global Select Market under the ticker symbol "ARLP." ARLP was formed in May 1999 and completed its initial public offering on August 19, 1999 when it acquired substantially all of the coal production and marketing assets of Alliance Resource Holdings, Inc., a Delaware corporation, and its subsidiaries. We are managed by our general partner, MGP, a Delaware limited liability company which holds a non-economic general partner interest in ARLP. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of June 30, 2024 and December 31, 2023, the results of our operations and comprehensive income for the three and six months ended June 30, 2024 and 2023 and cash flows for the six months ended June 30, 2024 and 2023. All intercompany transactions and accounts have been eliminated. Certain immaterial amounts in the prior period have been reclassified to conform to the current period presentation. These condensed consolidated financial statements and notes are prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting and do not include all the information normally included with financial statements prepared in accordance with generally accepted accounting principles ("GAAP") of the United States. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of the results for the periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2024. Use of Estimates The preparation of the ARLP Partnership's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in our condensed consolidated financial statements. Actual results could differ from those estimates. Digital Assets We began our crypto-mining activities during the second half of 2020 as we started mining bitcoin as a pilot project to monetize already paid for, yet underutilized, electricity load. We continue to periodically be awarded digital assets through our crypto-mining activities. The awards are accounted for as revenue and valued at the exchange quoted price at the time they are awarded. Beginning January 1, 2024, with our adoption of the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60) Digital assets Change in fair value of digital assets |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2024 | |
NEW ACCOUNTING STANDARDS | |
NEW ACCOUNTING STANDARDS | 2. NEW ACCOUNTING STANDARDS New Accounting Standards Issued and Adopted In December 2023, the FASB issued ASU 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60) New Accounting Standards Issued and Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2024 | |
ACQUISITIONS | |
ACQUISITIONS | 3. ACQUISITION S Acquisition Agreement On January 27, 2023, we entered into a one-year collaborative agreement with a third party, effective January 1, 2023, committing up to $35.0 million for the acquisition of oil & gas mineral interests in the Midland and Delaware Basins. On February 19, 2024, we renewed this agreement for an additional one-year term, committing up to $25.0 million. Under the agreement, the third party assists us in the identification, evaluation, and acquisition of target oil & gas mineral interests. In exchange for these services, the third party receives a participation share, partially funded by the third party, and is paid a periodic management fee. During the six months ended June 30, 2024, we purchased $0.6 million and $1.9 million of oil & gas mineral interests in proved and unproved properties, respectively, pursuant to this agreement. Management fees Miscellaneous Acquisitions In addition to the acquisitions under the collaborative agreement discussed above, we purchased $0.6 million and $1.6 million of oil & gas mineral interests in proved and unproved properties, respectively, during the six months ended June 30, 2024. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
CONTINGENCIES | |
CONTINGENCIES | 4. CONTINGENCIES Certain of our subsidiaries are party to litigation in which the plaintiffs allege violations of the Fair Labor Standards Act and state law due to alleged failure to compensate for time "donning" and "doffing" equipment and to account for certain bonuses in the calculation of overtime rates and pay. In April 2024, we entered into a settlement agreement with the plaintiffs pursuant to which we agreed to settle such litigation for $15.3 million. As a result of reaching this settlement, which is subject to court approval, we have accrued $15.3 million as of June 30, 2024. Our $15.3 million accrual is included in the Other current liabilities 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 (if any), such matters could have a material adverse effect on our business and operations. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2024 | |
INVENTORIES | |
INVENTORIES | 5. INVENTORIES Inventories consist of the following: June 30, December 31, 2024 2023 (in thousands) Coal $ 118,171 $ 56,549 Finished goods (net of reserve for obsolescence of $784 and $728, respectively) 4,109 3,908 Work in process 708 791 Raw materials 2,107 2,144 125,095 63,392 Supplies (net of reserve for obsolescence of $7,758 and $7,439, respectively) 71,130 64,164 Total inventories, net $ 196,225 $ 127,556 Certain of our subsidiaries, primarily consisting of Matrix Design Group, LLC, its subsidiaries, and Alliance Design Group, LLC (collectively referred to as "Matrix Group"), manufacture a variety of products for our mining operations and third parties. These products are primarily consumed internally by our mining operations with associated inventory historically presented as supplies inventory. Recently Matrix Group has been increasing its production of products with the intention to increase third-party sales. We have therefore presented our manufactured goods inventories in the table above separately from our historical presentation of supplies inventory. |
DIGITAL ASSETS
DIGITAL ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
DIGITAL ASSETS | |
DIGITAL ASSETS | 6. DIGITAL ASSETS The following table sets forth our digital assets as shown on the condensed consolidated balance sheet: June 30, 2024 Units Cost Basis Fair Value Digital assets: (in thousands, except unit data) Bitcoin 452.05 $ 15,071 $ 28,335 Total $ 15,071 $ 28,335 The following table represents a reconciliation of the fair values of our digital assets: Three Months Ended Six Months Ended June 30, June 30, 2024 2024 Digital assets: (in thousands) Beginning balance $ 30,325 $ 15,811 Additions 2,535 6,139 Dispositions (777) (1,720) Fair value gains (losses) (3,748) 8,105 Ending balance $ 28,335 $ 28,335 As discussed in Note 2 – New Accounting Standards, our beginning balance is inclusive of a cumulative-effect adjustment of $6.2 million as of January 1, 2024. Additions are the result of awarded digital assets received from our crypto-mining activities, while dispositions are the result of sales and payments for services. During the three and six months ended June 30, 2024, we had digital asset dispositions of $0.8 million and $1.7 million, respectively, inclusive of realized gains of $0.5 million and $1.1 million, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 7. FAIR VALUE MEASUREMENTS The following table summarizes certain fair value measurements within the hierarchy not included elsewhere in these notes: Fair Value Carrying Value Level 1 Level 2 Level 3 (in thousands) June 30, 2024 Recorded on a recurring basis: Digital assets (1) $ 28,335 $ 28,335 $ — $ — Additional disclosures: Long-term debt $ 503,465 $ — $ 527,126 $ — December 31, 2023 Additional disclosures: Long-term debt $ 347,584 $ — $ 347,116 $ — (1) As discussed in Note 2 – New Accounting Standards, we adopted ASU 2023-08 effective January 1, 2024. Prior to our adoption, our digital assets were not recorded at fair value on a recurring basis. The carrying amounts for cash equivalents, accounts receivable, accounts payable, accrued and other liabilities approximate fair value due to the short maturity of those instruments. The fair value of our digital assets are based on an exchange quoted price. See Note 6 – Digital Assets for more information on our digital assets. 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 for additional information on our long-term debt. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2024 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 8. LONG-TERM DEBT Long-term debt consists of the following: Unamortized Discount and Principal Debt Issuance Costs June 30, December 31, June 30, December 31, 2024 2023 2024 2023 (in thousands) Revolving credit facility $ — $ — $ (8,344) $ (8,118) Term loan 52,734 60,938 (1,473) (1,416) 8.625% Senior notes due 2029 400,000 — (9,624) — 7.5% Senior notes due 2025 — 284,607 — (891) Securitization facility — — — — June 2020 equipment financing — 2,039 — — February 2024 equipment financing 50,731 — — — 503,465 347,584 (19,441) (10,425) Less current maturities (26,411) (20,789) 4,382 451 Total long-term debt $ 477,054 $ 326,795 $ (15,059) $ (9,974) Credit Facility On January 13, 2023, Alliance Coal, as borrower, entered into a Credit Agreement with various financial institutions which was amended on June 12, 2024 (the "Credit Agreement"). The Credit Agreement provides for a $425 million revolving credit facility which includes a sublimit of $15.0 million for swingline borrowings and permits the issuance of letters of credit up to the full amount of the Credit Facility (the "Revolving Credit Facility"), and for a term loan in an aggregate principal amount of $75 million (the "Term Loan"). The Revolving Credit Facility also includes an incremental facility providing for an increase of $100.0 million at our option subject to lenders agreeing to participate in such incremental facility. The Credit Agreement matures on March 9, 2028, at which time the aggregate outstanding principal amount of all Revolving Credit Facility advances and all Term Loan advances are required to be repaid in full. Interest is payable quarterly, with principal on the Term Loan due in quarterly installments equal to 6.25% of the outstanding balance of the Term Loan on the Credit Agreement amendment date The Revolving Credit Facility is underwritten by a syndicate of several financial institutions and the obligations of the lenders are individual obligations, which means the failure of one or more lenders to be able to fund its obligation does not relieve the remaining lenders from funding their obligations. Based on our diligence, including discussions with representatives of certain of these financial institutions, as of June 30, 2024 we have no reason to believe that the banks within our syndicate are facing financial difficulties, defaults or limited liquidity situations that would cause them to be unable to fund their obligations under the Credit Agreement. However, should any of the banks in our syndicate experience conditions in the future that limit their ability to fund their obligations, the amount available under the Revolving Credit Facility could be reduced. The Credit Agreement is guaranteed by ARLP and certain of its subsidiaries, including the Intermediate Partnership and most of the direct and indirect subsidiaries of Alliance Coal (the "Subsidiary Guarantors"). The Credit Agreement also is secured by substantially all of the assets of the Subsidiary Guarantors and Alliance Coal. Borrowings under the Credit Agreement bear interest, at our option, at either (i) an adjusted one-month, three-month or six-month term rate based on the secured overnight financing rate published by the Federal Reserve Bank of New York, plus the applicable margin or (ii) the base rate plus the applicable margin. The base rate is the highest of (i) the Overnight Bank Funding Rate plus 0.50%, (ii) the Administrative Agent's prime rate, and (iii) the Daily Simple Secured Overnight Financing Rate plus 100 basis points. The applicable margin for borrowings under the Credit Agreement are determined by reference to the Consolidated Debt to Consolidated Cash Flow Ratio. For borrowings under the Term Loan, we elected the one-month term rate, with applicable margin, which was 8.7% as of June 30, 2024. At June 30, 2024, we had $41.0 million of letters of credit outstanding with $384.0 million available for borrowing under the Revolving Credit Facility. We incur an annual commitment fee of 0.50% on the undrawn portion of the Revolving Credit Facility. We utilize the Credit Agreement, as appropriate, for working capital requirements, capital expenditures and investments, scheduled debt payments and distribution payments. The Credit Agreement contains various restrictions affecting Alliance Coal and its subsidiaries, including, among other things, restrictions on incurrence of additional indebtedness and liens, sale of assets, investments, mergers and consolidations and transactions with affiliates. In each case, these restrictions are subject to various exceptions. In addition, restrictions apply to cash distributions by Alliance Coal to the Intermediate Partnership if such distribution would result in exceeding the debt of Alliance Coal to cash flow ratio (as determined in the Credit Agreement) being more than 1.0 to 1.0 or in Alliance Coal having liquidity of less than $200 million. The Credit Agreement requires us to maintain (a) a debt of Alliance Coal to cash flow ratio of not more than 1.5 to 1.0 , (b) a consolidated debt of Alliance Coal and the Intermediate Partnership to cash flow ratio of not more than 2.5 to 1.0 and (c) an interest coverage ratio of not less than 3.0 to 1.0 , in each case, during the four most recently ended fiscal quarters. The debt of Alliance Coal to cash flow ratio, consolidated debt of Alliance Coal and the Intermediate Partnership to cash flow ratio, and interest coverage ratio were 0.16 to 1.0 , 0.78 to 1.0 and 49.06 to 1.0 , respectively, for the trailing twelve months ended June 30, 2024. We were in compliance with the covenants of the Credit Agreement as of June 30, 2024 and anticipate remaining in compliance with the covenants. 8.625% Senior Notes due 2029 On June 12, 2024, the Intermediate Partnership and Alliance Resource Finance Corporation (as co-issuer), a wholly owned subsidiary of the Intermediate Partnership ("Alliance Finance"), issued an aggregate principal amount of $400.0 million of senior unsecured notes due 2029 (the "2029 Senior Notes") in a private placement to qualified institutional buyers. The 2029 Senior Notes have a term of five years , maturing on June 15, 2029 and accrue interest at an annual rate of 8.625% . Interest is payable semi-annually in arrears on each June 15 and December 15. The 2029 Senior Notes are guaranteed, jointly and severally, on a senior unsecured basis by ARLP, certain of ARLP's wholly owned oil and gas and coal royalties subsidiaries and each of ARLP's subsidiaries that guarantee obligations under the Credit Agreement. The indenture governing the 2029 Senior Notes contains customary terms, events of default and covenants relating to, among other things, the incurrence of debt, the payment of distributions or similar restricted payments, undertaking transactions with affiliates and limitations on asset sales. At any time prior to June 15, 2026, the issuers may redeem up to 35% of the aggregate principal amount of the 2029 Senior Notes at a redemption price equal to 108.625% of the principal amount redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, with an amount of cash not greater than the net proceeds from one or more equity offerings. The issuers may also redeem all or a part of the 2029 Senior Notes at any time on or after June 15, 2026, at the redemption prices set forth in the indenture, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. At any time prior to June 15, 2026, the issuers may redeem the 2029 Senior Notes at a redemption price equal to the principal amount plus a "make-whole" premium, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, if prior to June 15, 2026, a Specified Minerals Disposition (as defined in the indenture governing the 2029 Senior Notes and which involves oil and gas mineral interests) occurs, the issuers will be required to make an offer to purchase up to 40% of the aggregate principal amount of 2029 Senior Notes then outstanding at an offer price in cash in an amount equal to 108.625% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase. 7.5% Senior Notes due 2025 On April 24, 2017, the Intermediate Partnership and Alliance Finance (as co-issuer) issued an aggregate principal amount of $400.0 million of senior unsecured notes due 2025 in a private placement to qualified institutional buyers. The 7.5% Senior Notes due 2025 had a term of eight years , maturing on May 1, 2025 and accrued interest at an annual rate of 7.5% . Interest was payable semi-annually in arrears on each May 1 and November 1. The indenture governing the Senior Notes contained customary terms, events of default and covenants relating to, among other things, the incurrence of debt, the payment of distributions or similar restricted payments, undertaking transactions with affiliates and limitations on asset sales. In June 2024, we used a portion of the net proceeds from the offering of the 2029 Senior Notes to redeem the outstanding balance of the 7.5% Senior Notes due 2025. Accounts Receivable Securitization Certain direct and indirect wholly owned subsidiaries of our Intermediate Partnership are party to a $90.0 million accounts receivable securitization facility ("Securitization Facility") which matures in January 2025. Under the Securitization Facility, certain subsidiaries sell certain trade receivables on an ongoing basis to our Intermediate Partnership, which then sells the trade receivables to AROP Funding, LLC ("AROP Funding"), a wholly owned bankruptcy-remote special purpose subsidiary of our Intermediate Partnership, which in turn borrows on a revolving basis up to $90.0 million secured by the trade receivables. After the sale, Alliance Coal, as servicer of the assets, collects the receivables on behalf of AROP Funding. The Securitization Facility bears interest based on a short-term bank yield index. On June 30, 2024, we had $11.7 million of letters of credit outstanding with $78.3 million available for borrowing under the Securitization Facility. The agreement governing the Securitization Facility contains customary terms and conditions, including limitations with regards to certain customer credit ratings. June 2020 Equipment Financing On June 5, 2020, the Intermediate Partnership entered into an equipment financing arrangement accounted for as debt, wherein the Intermediate Partnership received $14.7 million in exchange for conveying its interest in certain equipment owned indirectly by the Intermediate Partnership and entering into a master lease agreement for that equipment (the "June 2020 Equipment Financing"). The June 2020 Equipment Financing contained customary terms and events of default and provided for forty-eight monthly payments with an implicit interest rate of 6.1% . The June 2020 Equipment Financing matured on June 5, 2024 and the equipment reverted back to the Intermediate Partnership. February 2024 Equipment Financing On February 28, 2024, Alliance Coal entered into an equipment financing arrangement accounted for as debt, wherein Alliance Coal received $54.6 million in exchange for conveying its interest in certain equipment owned indirectly by Alliance Coal and entering into a master lease agreement for that equipment (the "February 2024 Equipment Financing"). The February 2024 Equipment Financing contains customary terms and events of default and provides for forty-eight monthly payments with an implicit interest rate of 8.29% , maturing on February 28, 2028. Upon maturity, the equipment will revert to Alliance Coal. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAXES | |
INCOME TAXES | 9. INCOME TAXES Components of income tax expense are as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Current: Federal $ 4,506 $ 3,935 $ 9,224 $ 8,247 State 317 272 655 573 4,823 4,207 9,879 8,820 Deferred: Federal (839) (190) (966) (521) State (124) (18) (104) (59) (963) (208) (1,070) (580) Income tax expense $ 3,860 $ 3,999 $ 8,809 $ 8,240 The effective income tax rates for our income tax expense for the three and six months ended June 30, 2024 and 2023 are less than the federal statutory rate, primarily due to the portion of income not subject to income taxes. Our 2020 through 2023 tax years remain open to examination by tax authorities, and certain lower-tier partnership income tax returns for the tax years ended December 31, 2020 and 2021 are being audited by the Internal Revenue Service. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2024 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 10. VARIABLE INTEREST ENTITIES AllDale I & II and Cavalier Minerals We own the general partner interests and, including the limited partner interests we hold through our ownership in Cavalier Minerals JV, LLC ("Cavalier Minerals"), approximately 97% of the limited partner interests in AllDale Minerals LP ("AllDale I") and AllDale Minerals II, LP ("AllDale II", and collectively with AllDale I, "AllDale I & II"). As the general partner of AllDale I & II, we are entitled to receive 20.0% of all distributions from AllDale I & II with the remaining 80.0% allocated to limited partners based upon ownership percentages. Cavalier Minerals owns approximately 72% of the limited partner interests in AllDale I & II. We own the managing member interest and a 96% member interest in Cavalier Minerals. Bluegrass Minerals Management, LLC ("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. All members have recovered their investment and Bluegrass Minerals began receiving its profits interest distributions in late 2022. We have concluded that AllDale I, AllDale II and Cavalier Minerals are variable interest entities ("VIEs") which we consolidate as the primary beneficiary because we have the power to direct the activities that most significantly impact the economic performance of AllDale I, AllDale II and Cavalier Minerals in addition to having substantial equity ownership. Our share of Cavalier Minerals' investment in AllDale I & II is eliminated in consolidation and Bluegrass Minerals' investment in Cavalier Minerals is accounted for as noncontrolling ownership interest on our condensed consolidated balance sheets. Additionally, earnings attributable to Bluegrass Minerals are recognized as noncontrolling interest in our condensed consolidated statements of income. The following table presents the carrying amounts and classification of AllDale I & II's assets and liabilities included in our condensed consolidated balance sheets: June 30, December 31, 2024 2023 Assets (liabilities): (in thousands) Cash and cash equivalents $ 3,259 $ 4,690 Trade receivables 18,769 16,058 Total property, plant and equipment, net 381,348 389,767 Accounts payable (232) (175) Accrued taxes other than income taxes (467) (958) AllDale III AllDale Minerals III, LP ("AllDale III") owns oil & gas mineral interests in areas around the oil & gas mineral interests we own. Alliance Minerals owns a 13.9% limited partner interest in AllDale III. Alliance Minerals' investment in AllDale III is subject to a 25% profits interest for the general partner that is 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. We have concluded that AllDale III is a VIE that we do not consolidate. 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 are not the primary beneficiary of AllDale III because we do not have the power to direct the activities that most significantly impact AllDale III's economic performance. See Note 11 – Equity Investments for more information about the accounting for our investment in AllDale III. Francis On April 5, 2022, we invested $20 million in Francis Renewable Energy, LLC ("Francis"), in the form of a convertible note. Our convertible note matured on April 1, 2023 and was converted into a preferred equity interest in Francis. Prior to conversion, we had determined the note more closely represented equity as opposed to debt. Therefore, we accounted for the convertible note as an equity contribution even though we did not participate in Francis' earnings or losses and were not eligible to receive distributions during the term of the note. Subsequent to the conversion on April 1, 2023, we participate in earnings and losses and are eligible to receive distributions. As of June 30, 2024, we held approximately 16.7% of Francis' equity. We have concluded that Francis is a VIE that we do not consolidate. Francis' management structure is similar to a limited partnership with the non-managing members (i) not having the ability to remove the managing member and (ii) not participating significantly in the operational decisions. We are not the primary beneficiary of Francis because we do not have the power to direct the activities that most significantly impact Francis's economic performance. See Note 11 – Equity Investments for more information about the accounting for our investment in Francis. NGP ET IV On June 2, 2022, we committed to purchase $25.0 million of limited partner interests in NGP Energy Transition, L.P. ("NGP ET IV"), a private equity fund sponsored by NGP and focused on investments that are part of the global transition toward a lower carbon economy. This commitment represents a 3.6% interest in NGP ET IV. As of June 30, 2024, we have funded $7.9 million of this commitment. |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 6 Months Ended |
Jun. 30, 2024 | |
EQUITY INVESTMENTS | |
EQUITY INVESTMENTS | 11. EQUITY INVESTMENT S AllDale III 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 were as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Beginning balance $ 23,558 $ 24,695 $ 23,933 $ 25,284 Equity method investment income 778 716 1,285 1,141 Distributions received (1,118) (960) (2,000) (1,974) Ending balance $ 23,218 $ 24,451 $ 23,218 $ 24,451 Francis We account for our ownership interest in the income or loss of Francis as an equity method investment. Prior to the conversion of our convertible note, we did not participate in Francis' earnings or losses; however, upon conversion on April 1, 2023 we began participating. As a development stage company, Francis depends primarily on capital contributions to meet its operating and debt obligations. We currently believe that the carrying value of our investment is recoverable; however, if Francis is unable to raise sufficient funds to continue its operations and meet its debt obligations, it could have an adverse effect on our investment. The changes in our equity method investment in Francis were as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Beginning balance $ 15,390 $ 20,000 $ 16,487 $ 20,000 Equity method investment loss (872) (2,620) (1,969) (2,620) Ending balance $ 14,518 $ 17,380 $ 14,518 $ 17,380 NGP ET IV We account for our ownership interest in the income or loss of NGP ET IV as an equity method investment. The changes in our equity method investment in NGP ET IV were as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Beginning balance $ 6,745 $ 4,254 $ 6,083 $ 4,087 Contributions 665 794 1,290 1,334 Equity method investment income (loss) (58) (90) (21) (463) Ending balance $ 7,352 $ 4,958 $ 7,352 $ 4,958 Infinitum During 2022, we purchased $42.0 million of Series D Preferred Stock ("Series D Preferred Stock") in Infinitum Electric, Inc. ("Infinitum"), a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators. On September 8, 2023, Ascend On August 22, 2023, we purchased $25.0 million of Series D Preferred Stock (the "Ascend Preferred Stock") in Ascend Elements, Inc. ("Ascend"), a U.S.-based manufacturer and recycler of sustainable, engineered battery materials for electric vehicles. The Ascend Preferred Stock provides for non-cumulative dividends when and if declared by Ascend's board of directors. Each share is convertible, at any time, at our option, into shares of common stock of Ascend. We account for our ownership interest in Ascend as an equity investment without a readily determinable fair value. Absent an observable price change, it is not practicable to estimate the fair value of our investment in Ascend because of the lack of a quoted market price for our ownership interests. Therefore, we use a measurement alternative other than fair value to account for our investment. |
PARTNERS' CAPITAL
PARTNERS' CAPITAL | 6 Months Ended |
Jun. 30, 2024 | |
PARTNERS' CAPITAL | |
PARTNERS' CAPITAL | 12. PARTNERS' CAPITAL Distributions Distributions paid or declared during 2023 and 2024 were as follows: Payment Date Per Unit Cash Distribution Total Cash Distribution (in thousands) February 14, 2023 $ 0.70 $ 91,938 May 15, 2023 0.70 90,930 August 14, 2023 0.70 90,899 November 14, 2023 0.70 90,812 Total $ 2.80 $ 364,579 February 14, 2024 $ 0.70 $ 91,246 May 15, 2024 0.70 90,736 August 14, 2024 (1) 0.70 Total $ 2.10 $ 181,982 (1) On July 26, 2024, we declared this quarterly distribution payable on August 14, 2024 to all unitholders of record as of August 7, 2024. Unit Repurchase Program In January 2023, the board of directors of MGP authorized a $93.5 million increase to the unit repurchase program authorizing us to be able to repurchase up to a total of $100.0 million of ARLP common units from that date. No units were repurchased during the six months ended June 30, 2024. During the six months ended June 30, 2023, we repurchased and retired 929,842 units at an average unit price of $20.90 for an aggregate purchase price of $19.4 million. Since inception of the unit repurchase program, we have repurchased and retired 6,390,446 units at an average unit price of $17.67 for an aggregate purchase price of $112.9 million. Change in Partners' Capital The following tables present the quarterly change in Partners' Capital for the three and six months ended June 30, 2024 and 2023: Accumulated Number of Limited Other Limited Partner Partners' Comprehensive Noncontrolling Total Partners' Units Capital Income (Loss) Interest Capital (in thousands, except unit data) Balance at January 1, 2024 127,125,437 $ 1,896,027 $ (61,525) $ 24,095 $ 1,858,597 Cumulative-effect adjustment (see Note 2) — 6,232 — — 6,232 Comprehensive income: Net income — 158,057 — 1,510 159,567 Actuarially determined long-term liability adjustments — — 923 — 923 Total comprehensive income — — — — 160,490 Settlement of deferred compensation plans 936,544 (13,292) — — (13,292) Common unit-based compensation — 2,604 — — 2,604 Distributions on deferred common unit-based compensation — (2,261) — — (2,261) Distributions from consolidated company to noncontrolling interest — — — (1,981) (1,981) Distributions to Partners — (88,985) — — (88,985) Balance at March 31, 2024 128,061,981 1,958,382 (60,602) 23,624 1,921,404 Comprehensive income: Net income — 100,187 — 1,322 101,509 Actuarially determined long-term liability adjustments — — 957 — 957 Total comprehensive income 102,466 Common unit-based compensation — 2,926 — — 2,926 Distributions on deferred common unit-based compensation — (1,091) — — (1,091) Distributions from consolidated company to noncontrolling interest — — — (1,942) (1,942) Distributions to Partners — (89,645) — — (89,645) Balance at June 30, 2024 128,061,981 $ 1,970,759 $ (59,645) $ 23,004 $ 1,934,118 Accumulated Number of Limited General Other Limited Partner Partners' Partner's Comprehensive Noncontrolling Total Partners' Units Capital Capital Income (Loss) Interest Capital (in thousands, except unit data) Balance at January 1, 2023 127,195,219 $ 1,656,025 $ 66,548 $ (41,054) $ 26,507 $ 1,708,026 Comprehensive income: Net income — 189,801 1,384 — 1,493 192,678 Actuarially determined long-term liability adjustments — — — 565 — 565 Total comprehensive income 193,243 Settlement of deferred compensation plans 860,060 (9,320) — — — (9,320) Purchase of units under unit repurchase program (860,060) (18,209) — — — (18,209) Common unit-based compensation — 2,830 — — — 2,830 Distributions on deferred common unit-based compensation — (2,901) — — — (2,901) Distributions from consolidated company to affiliate noncontrolling interest — — — — (2,288) (2,288) JC Resources acquisition (7,251) (64,999) (72,250) Cash retained by JC Resources in acquisition — — (2,933) — — (2,933) Distributions to Partners — (89,037) — — — (89,037) Balance at March 31, 2023 127,195,219 1,721,938 — (40,489) 25,712 1,707,161 Comprehensive income: Net income — 169,790 — — 1,515 171,305 Actuarially determined long-term liability adjustments — — — 563 — 563 Total comprehensive income 171,868 Settlement of deferred compensation plans — (1,014) — — — (1,014) Purchase of units under unit repurchase program (69,782) (1,223) — — — (1,223) Common unit-based compensation — 3,121 — — — 3,121 Distributions on deferred common unit-based compensation — (1,895) — — — (1,895) Distributions from consolidated company to noncontrolling interest — — — — (2,226) (2,226) Distributions to Partners — (89,035) — — — (89,035) Balance at June 30, 2023 127,125,437 $ 1,801,682 $ — $ (39,926) $ 25,001 $ 1,786,757 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2024 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 13. 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 18 – Segment Information. Coal Operations Royalties Other, Illinois Corporate and Basin Appalachia Oil & Gas Coal Elimination Consolidated (in thousands) Three Months Ended June 30, 2024 Coal sales $ 331,973 $ 180,686 $ — $ — $ — $ 512,659 Oil & gas royalties — — 36,429 — — 36,429 Coal royalties — — — 16,584 (16,584) — Transportation revenues 20,570 6,131 — — — 26,701 Other revenues 2,218 1,396 8 4 13,935 17,561 Total revenues $ 354,761 $ 188,213 $ 36,437 $ 16,588 $ (2,649) $ 593,350 Three Months Ended June 30, 2023 Coal sales $ 331,813 $ 228,518 $ — $ — $ — $ 560,331 Oil & gas royalties — — 33,087 — — 33,087 Coal royalties — — — 16,567 (16,567) — Transportation revenues 21,178 9,349 — — — 30,527 Other revenues 2,401 375 325 — 14,790 17,891 Total revenues $ 355,392 $ 238,242 $ 33,412 $ 16,567 $ (1,777) $ 641,836 Six Months Ended June 30, 2024 Coal sales $ 702,603 $ 371,935 $ — $ — $ — $ 1,074,538 Oil & gas royalties — — 73,459 — — 73,459 Coal royalties — — — 35,286 (35,286) — Transportation revenues 45,046 12,408 — — — 57,454 Other revenues 4,953 1,883 323 10 32,427 39,596 Total revenues $ 752,602 $ 386,226 $ 73,782 $ 35,296 $ (2,859) $ 1,245,047 Six Months Ended June 30, 2023 Coal sales $ 668,723 $ 470,392 $ — $ — $ — $ 1,139,115 Oil & gas royalties — — 67,584 — — 67,584 Coal royalties — — — 32,080 (32,080) — Transportation revenues 42,506 18,259 — — — 60,765 Other revenues 4,569 850 1,365 — 30,510 37,294 Total revenues $ 715,798 $ 489,501 $ 68,949 $ 32,080 $ (1,570) $ 1,304,758 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 June 30, 2024 and disaggregated by segment and contract duration. 2027 and 2024 2025 2026 Thereafter Total (in thousands) Illinois Basin Coal Operations coal revenues $ 682,321 $ 580,348 $ 351,675 $ 355,100 $ 1,969,444 Appalachia Coal Operations coal revenues 417,101 376,303 84,410 30,105 907,919 Total coal revenues (1) $ 1,099,422 $ 956,651 $ 436,085 $ 385,205 $ 2,877,363 (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 | 6 Months Ended |
Jun. 30, 2024 | |
EARNINGS PER LIMITED PARTNER UNIT | |
EARNINGS PER LIMITED PARTNER UNIT | 14 . EARNINGS PER LIMITED PARTNER UNIT We utilize the two-class method in calculating basic and diluted earnings per limited partner unit ("EPU"). Subsequent to the acquisition of oil & gas net royalty acres from JC Resources LP on February 22, 2023 (the "JC Resources Acquisition"), net income attributable to ARLP is allocated to limited partners and participating securities with nonforfeitable distributions or distribution equivalents, while net losses attributable to ARLP are allocated only to limited partners but not to participating securities. Prior to the JC Resources Acquisition, in addition to limited partners and participating securities allocations, amounts were also allocated to our general partner for historical earnings from the mineral interests acquired in the JC Resources Acquisition. Our participating securities are outstanding restricted unit awards under our Long-Term Incentive Plan ("LTIP") and phantom units in notional accounts under our Supplemental Executive Retirement Plan ("SERP") and the MGP Amended and Restated Deferred Compensation Plan for Directors ("Directors' Deferred Compensation Plan"). The following is a reconciliation of net income attributable to ARLP used for calculating basic and diluted earnings per unit and the weighted-average units used in computing EPU: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands, except per unit data) Net income attributable to ARLP $ 100,187 $ 169,790 $ 258,244 $ 360,975 Less: General partner's interest in net income attributable to ARLP — — — (1,384) Limited partners' interest in net income attributable to ARLP 100,187 169,790 258,244 359,591 Less: Distributions to participating securities (1,688) (2,396) (3,368) (4,828) Undistributed earnings attributable to participating securities (164) (2,071) (1,518) (4,981) Net income attributable to ARLP available to limited partners $ 98,335 $ 165,323 $ 253,358 $ 349,782 Weighted-average limited partner units outstanding – basic and diluted 128,062 127,183 127,866 127,236 Earnings per limited partner unit - basic and diluted (1) $ 0.77 $ 1.30 $ 1.98 $ 2.75 (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. The combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 1,726 and 1,945 for the three and six months ended June 30, 2024, respectively, and 2,577 and 2,896 for the three and six months ended June 30, 2023, respectively, were considered anti-dilutive under the treasury stock method . |
WORKERS' COMPENSATION AND PNEUM
WORKERS' COMPENSATION AND PNEUMOCONIOSIS | 6 Months Ended |
Jun. 30, 2024 | |
WORKERS' COMPENSATION AND PNEUMOCONIOSIS | |
WORKERS' COMPENSATION AND PNEUMOCONIOSIS | 15. WORKERS' COMPENSATION AND PNEUMOCONIOSIS The changes in the workers' compensation liability, including current and long-term liability balances, for each of the periods presented were as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Beginning balance $ 47,561 $ 50,017 $ 47,975 $ 49,452 Changes in accruals 3,365 2,196 6,490 6,070 Payments (3,446) (2,646) (7,494) (6,505) Interest accretion 509 551 1,018 1,101 Valuation loss (gain) (1) (795) 990 (795) 990 Ending balance $ 47,194 $ 51,108 $ 47,194 $ 51,108 (1) Our estimate of the liability for the present value of current workers′ compensation benefits is based on our actuarial calculations. Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claims development patterns, mortality, medical costs and interest rates. The valuation gain in 2024 is due to an increase in the discount rate from 4.66% on December 31, 2023 to 5.18% on June 30, 2024. The valuation loss in 2023 is due to adverse claims development. We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a claim have been met. The deductible level may vary by claim year. Our workers' compensation liability above is presented on a gross basis and does not include our expected receivables from our insurance policy. Our receivables for traumatic injury claims under this policy as of June 30, 2024 are $4.1 million and are included in Other long-term assets Certain of our mine operating entities are liable under state statutes and the Federal Coal Mine Health and Safety Act of 1969, as amended, to pay pneumoconiosis, or black lung, benefits to eligible employees and former employees and their dependents. Components of the net periodic benefit cost for each of the periods presented are as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Service cost $ 858 $ 675 $ 1,719 $ 1,344 Interest cost (1) 1,558 1,238 3,116 2,476 Net amortization (1) 839 346 1,678 691 Net periodic benefit cost $ 3,255 $ 2,259 $ 6,513 $ 4,511 (1) Interest cost and net amortization are included in the Other income (expense) line item within our condensed consolidated statements of income. |
COMMON UNIT-BASED COMPENSATION
COMMON UNIT-BASED COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2024 | |
COMMON UNIT-BASED COMPENSATION PLANS | |
COMMON UNIT-BASED COMPENSATION PLANS | 16. COMMON UNIT-BASED COMPENSATION PLANS Long-Term Incentive Plan 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, 2024 2,710,344 $ 10.91 51,405 Granted (1) 455,574 19.69 Vested (2) (1,582,422) 6.53 Forfeited (38,204) 16.08 Non-vested grants at June 30, 2024 1,545,292 17.87 37,798 (1) The restricted units granted during 2024 have certain minimum-value guarantees per unit, regardless of whether the awards vest. (2) During the six months ended June 30, 2024, we issued 936,544 unrestricted common units to the LTIP participants. The remaining vested units were settled in cash to satisfy tax withholding. LTIP expense for grants of restricted units was $2.3 million and $ 2.7 million for the three months ended June 30, 2024 and 2023, respectively, and $4.4 million and $4.9 million for the six months ended June 30, 2024 and 2023, respectively. The total obligation associated with LTIP grants of restricted units as of June 30, 2024 was $ 13.5 million and is included in the partners' capital Limited partners-common unitholders line item on our condensed consolidated balance sheets. As of June 30, 2024, there was $14.2 million in total unrecognized compensation expense related to the non-vested LTIP restricted unit grants that are expected to vest. That expense is expected to be recognized over a weighted-average period of 1.4 years. Supplemental Executive Retirement Plan and Directors' Deferred Compensation Plan 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, 2024 811,946 $ 20.44 $ 17,197 Granted 53,770 21.18 Phantom units outstanding as of June 30, 2024 865,716 20.48 21,175 Total SERP and Directors' Deferred Compensation Plan expense was $0.7 million and $0.6 million for the three months ended June 30, 2024 and 2023, respectively, and $1.3 million and $1.2 million for the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, the total obligation associated with the SERP and Directors' Deferred Compensation Plan was $17.7 million and is included in the partners' capital Limited partners-common unitholders |
COMPONENTS OF PENSION PLAN NET
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS | 6 Months Ended |
Jun. 30, 2024 | |
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS | |
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS | 17. COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS Eligible employees at certain of our mining operations participate in a defined benefit plan (the "Pension Plan") that we sponsor. The Pension Plan is currently closed to new applicants and participants in the Pension Plan are no longer receiving benefit accruals for service. The benefit formula for the Pension Plan is a fixed dollar unit based on years of service. Components of the net periodic benefit credit for each of the periods presented are as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Interest cost $ 1,269 $ 1,296 $ 2,528 $ 2,591 Expected return on plan assets (1,761) (1,517) (3,526) (3,115) Amortization of prior service cost 46 46 93 93 Amortization of net loss 72 171 109 344 Net periodic benefit credit (1) $ (374) $ (4) $ (796) $ (87) (1) Net periodic benefit credit for the Pension Plan is included in the Other income (expense) line item within our condensed consolidated statements of income. We do not expect to make material contributions to the Pension Plan during 2024. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 18. 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. The Illinois Basin Coal Operations reportable segment includes (a) the Gibson County Coal, LLC's mining complex, (b) the Warrior Coal, LLC mining complex, (c) the River View mining complex and (d) the Hamilton County Coal, LLC mining complex. The segment also includes our Mt. Vernon Transfer Terminal, LLC ("Mt. Vernon") coal loading terminal in Indiana which operates on the Ohio River, Mid-America Carbonates, LLC and other support services, and our non-operating mining complexes. The Appalachia Coal Operations reportable segment includes (a) the Mettiki mining complex, (b) the Tunnel Ridge, LLC mining complex and (c) the MC Mining, LLC mining complex. The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by Alliance Minerals through its consolidated subsidiaries as well as equity interests held in AllDale III (Note 11 – Equity Investments). The 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 63% 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, the Matrix Group, our investments in Francis, Infinitum, NGP ET IV, and Ascend (see Note 11 – Equity Investments), Wildcat Insurance, LLC which assists the ARLP Partnership with its insurance requirements, AROP Funding and Alliance Finance (both discussed in Note 8 – Long-Term Debt) and our crypto-mining 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) Three Months Ended June 30, 2024 Revenues - Outside (1) $ 354,761 $ 188,213 $ 36,437 $ 4 $ 13,935 $ 593,350 Revenues - Intercompany — — — 16,584 (16,584) — Total revenues (1) 354,761 188,213 36,437 16,588 (2,649) 593,350 Segment Adjusted EBITDA Expense (2) 216,168 136,762 4,635 6,632 (1,026) 363,171 Segment Adjusted EBITDA (3) 118,023 45,319 31,258 9,955 (2,551) 202,004 Capital expenditures (4) 65,973 32,793 — — 2,676 101,442 Three Months Ended June 30, 2023 Revenues - Outside (1) $ 355,392 $ 238,242 $ 33,412 $ — $ 14,790 $ 641,836 Revenues - Intercompany — — — 16,567 (16,567) — Total revenues (1) 355,392 238,242 33,412 16,567 (1,777) 641,836 Segment Adjusted EBITDA Expense (2) 214,666 119,319 3,562 5,597 (4,710) 338,434 Segment Adjusted EBITDA (3) 119,551 109,573 29,050 10,970 222 269,366 Capital expenditures (4) 57,469 31,309 40 — 725 89,543 Six Months Ended June 30, 2024 Revenues - Outside (1) $ 752,602 $ 386,226 $ 73,782 $ 10 $ 32,427 $ 1,245,047 Revenues - Intercompany — — — 35,286 (35,286) — Total revenues (1) 752,602 386,226 73,782 35,296 (2,859) 1,245,047 Segment Adjusted EBITDA Expense (2) 449,255 254,264 9,575 12,896 (4,492) 721,498 Segment Adjusted EBITDA (3) 258,301 119,554 62,660 22,399 (356) 462,558 Total assets 1,011,972 552,796 793,416 316,505 378,257 3,052,946 Capital expenditures (4) 162,106 59,244 — — 3,938 225,288 Six Months Ended June 30, 2023 Revenues - Outside (1) $ 715,798 $ 489,501 $ 68,949 $ — $ 30,510 $ 1,304,758 Revenues - Intercompany — — — 32,080 (32,080) — Total revenues (1) 715,798 489,501 68,949 32,080 (1,570) 1,304,758 Segment Adjusted EBITDA Expense (2) 421,735 245,118 7,986 10,985 (8,094) 677,730 Segment Adjusted EBITDA (3) 251,559 226,123 59,095 21,095 3,441 561,313 Total assets 830,821 470,929 758,816 322,926 404,451 2,787,943 Capital expenditures (4) 119,451 63,814 42 400 1,310 185,017 (1) Revenues included in the Other, Corporate and Elimination column are attributable to intercompany eliminations, which are primarily intercompany coal royalty eliminations, outside revenues at the Matrix Group and awarded digital assets received for our crypto-mining activities. (2) Segment Adjusted EBITDA Expense (a non-GAAP financial measure) includes operating expenses, coal purchases, if applicable, and other income or expense as adjusted to remove certain items from operating expenses that we characterize as unrepresentative of our ongoing operations such as certain litigation accruals. Transportation expenses are excluded as these expenses are passed through to our customers and, consequently, we do not realize any gain or loss on transportation revenues. Segment Adjusted EBITDA Expense is used as a supplemental financial measure by our management to assess the operating performance of our segments. Segment Adjusted EBITDA Expense is a key component of Segment Adjusted EBITDA in addition to coal sales, royalty revenues and other revenues. The exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA Expense allows management to focus solely on the evaluation of segment operating performance as it primarily relates to our operating expenses. The following is a reconciliation of Operating expenses (excluding depreciation, depletion and amortization), Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Operating expenses (excluding depreciation, depletion and amortization) $ 351,605 $ 334,402 $ 715,464 $ 673,125 Litigation expense accrual — — (15,250) — Outside coal purchases 10,608 4,209 19,720 4,209 Other expense 958 (177) 1,564 396 Segment Adjusted EBITDA Expense $ 363,171 $ 338,434 $ 721,498 $ 677,730 (3) Segment Adjusted EBITDA (a non-GAAP financial measure) is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses modified for certain items that we characterize as unrepresentative of our ongoing operations, such as the change in fair value of digital assets and certain litigation accruals. Segment Adjusted EBITDA is a key component of consolidated EBITDA, which is used as a supplemental financial measure by management and by external users of our financial statements such as investors, commercial banks, research analysts and others. We believe that the presentation of EBITDA provides useful information to investors regarding our performance and results of operations because EBITDA, when used in conjunction with related GAAP financial measures, (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation and planning decisions and (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations. Segment Adjusted EBITDA is also used as a supplemental financial measure by our management for reasons similar to those stated in the previous explanation of EBITDA. In addition, the exclusion of corporate general and administrative expenses from consolidated Segment Adjusted EBITDA allows management 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. The following is a reconciliation of Net income Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Net income $ 101,509 $ 171,305 $ 261,076 $ 363,983 Noncontrolling interest (1,322) (1,515) (2,832) (3,008) Net income attributable to ARLP $ 100,187 $ 169,790 $ 258,244 $ 360,975 General and administrative 20,562 20,130 42,691 41,215 Depreciation, depletion and amortization 66,454 68,639 132,003 134,189 Interest expense, net 7,193 6,808 13,666 16,694 Change in fair value of digital assets 3,748 — (8,105) — Litigation expense accrual — — 15,250 — Income tax expense 3,860 3,999 8,809 8,240 Consolidated Segment Adjusted EBITDA $ 202,004 $ 269,366 $ 462,558 $ 561,313 (4) Capital expenditures exclude $72.3 million paid for the JC Resources Acquisition for the six months ended June 30, 2023, $2.9 million and $1.1 million paid towards oil & gas reserve acquisitions for the three months ended June 30, 2024 and 2023, respectively, and $4.7 million and $3.9 million paid towards oil & gas reserve acquisitions for the six months ended June 30, 2024 and 2023, respectively (See Note 3 – Acquisitions) . |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 100,187 | $ 169,790 | $ 258,244 | $ 360,975 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
ORGANIZATION AND PRESENTATION (
ORGANIZATION AND PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
ORGANIZATION AND PRESENTATION | |
Consolidation | Significant Relationships Referenced in Notes to Condensed Consolidated Financial Statements ● References to "we," "us," "our" or "ARLP Partnership" mean the business and operations of Alliance Resource Partners, L.P., the parent company, as well as its consolidated subsidiaries. ● References to "ARLP" mean Alliance Resource Partners, L.P., individually as the parent company, and not on a consolidated basis. ● References to "MGP" mean Alliance Resource Management GP, LLC, ARLP's general partner. ● References to "Intermediate Partnership" mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P. ● References to "Alliance Coal" mean Alliance Coal, LLC, an indirect wholly owned subsidiary of ARLP. ● References to "Alliance Minerals" mean Alliance Minerals, LLC, an indirect wholly owned subsidiary of ARLP. ● References to "Alliance Resource Properties" mean Alliance Resource Properties, LLC, an indirect wholly owned subsidiary of ARLP. Organization ARLP is a Delaware limited partnership listed on the NASDAQ Global Select Market under the ticker symbol "ARLP." ARLP was formed in May 1999 and completed its initial public offering on August 19, 1999 when it acquired substantially all of the coal production and marketing assets of Alliance Resource Holdings, Inc., a Delaware corporation, and its subsidiaries. We are managed by our general partner, MGP, a Delaware limited liability company which holds a non-economic general partner interest in ARLP. |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of June 30, 2024 and December 31, 2023, the results of our operations and comprehensive income for the three and six months ended June 30, 2024 and 2023 and cash flows for the six months ended June 30, 2024 and 2023. All intercompany transactions and accounts have been eliminated. Certain immaterial amounts in the prior period have been reclassified to conform to the current period presentation. These condensed consolidated financial statements and notes are prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting and do not include all the information normally included with financial statements prepared in accordance with generally accepted accounting principles ("GAAP") of the United States. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of the results for the periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2024. |
Use of Estimates | Use of Estimates The preparation of the ARLP Partnership's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in our condensed consolidated financial statements. Actual results could differ from those estimates. |
Digital Assets | Digital Assets We began our crypto-mining activities during the second half of 2020 as we started mining bitcoin as a pilot project to monetize already paid for, yet underutilized, electricity load. We continue to periodically be awarded digital assets through our crypto-mining activities. The awards are accounted for as revenue and valued at the exchange quoted price at the time they are awarded. Beginning January 1, 2024, with our adoption of the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60) Digital assets Change in fair value of digital assets |
New Accounting Standards | New Accounting Standards Issued and Adopted In December 2023, the FASB issued ASU 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60) New Accounting Standards Issued and Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INVENTORIES | |
Schedule of inventories | June 30, December 31, 2024 2023 (in thousands) Coal $ 118,171 $ 56,549 Finished goods (net of reserve for obsolescence of $784 and $728, respectively) 4,109 3,908 Work in process 708 791 Raw materials 2,107 2,144 125,095 63,392 Supplies (net of reserve for obsolescence of $7,758 and $7,439, respectively) 71,130 64,164 Total inventories, net $ 196,225 $ 127,556 |
DIGITAL ASSETS (Tables)
DIGITAL ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
DIGITAL ASSETS | |
Schedule of digital assets | June 30, 2024 Units Cost Basis Fair Value Digital assets: (in thousands, except unit data) Bitcoin 452.05 $ 15,071 $ 28,335 Total $ 15,071 $ 28,335 |
Schedule of digital assets fair value reconciliation | Three Months Ended Six Months Ended June 30, June 30, 2024 2024 Digital assets: (in thousands) Beginning balance $ 30,325 $ 15,811 Additions 2,535 6,139 Dispositions (777) (1,720) Fair value gains (losses) (3,748) 8,105 Ending balance $ 28,335 $ 28,335 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE MEASUREMENTS | |
Summary of fair value measurements within the hierarchy | Fair Value Carrying Value Level 1 Level 2 Level 3 (in thousands) June 30, 2024 Recorded on a recurring basis: Digital assets (1) $ 28,335 $ 28,335 $ — $ — Additional disclosures: Long-term debt $ 503,465 $ — $ 527,126 $ — December 31, 2023 Additional disclosures: Long-term debt $ 347,584 $ — $ 347,116 $ — (1) As discussed in Note 2 – New Accounting Standards, we adopted ASU 2023-08 effective January 1, 2024. Prior to our adoption, our digital assets were not recorded at fair value on a recurring basis. |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
LONG-TERM DEBT | |
Schedule of long-term debt | Unamortized Discount and Principal Debt Issuance Costs June 30, December 31, June 30, December 31, 2024 2023 2024 2023 (in thousands) Revolving credit facility $ — $ — $ (8,344) $ (8,118) Term loan 52,734 60,938 (1,473) (1,416) 8.625% Senior notes due 2029 400,000 — (9,624) — 7.5% Senior notes due 2025 — 284,607 — (891) Securitization facility — — — — June 2020 equipment financing — 2,039 — — February 2024 equipment financing 50,731 — — — 503,465 347,584 (19,441) (10,425) Less current maturities (26,411) (20,789) 4,382 451 Total long-term debt $ 477,054 $ 326,795 $ (15,059) $ (9,974) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAXES | |
Components of income tax expense | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Current: Federal $ 4,506 $ 3,935 $ 9,224 $ 8,247 State 317 272 655 573 4,823 4,207 9,879 8,820 Deferred: Federal (839) (190) (966) (521) State (124) (18) (104) (59) (963) (208) (1,070) (580) Income tax expense $ 3,860 $ 3,999 $ 8,809 $ 8,240 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
VARIABLE INTEREST ENTITIES | |
Schedule of assets and liabilities | June 30, December 31, 2024 2023 Assets (liabilities): (in thousands) Cash and cash equivalents $ 3,259 $ 4,690 Trade receivables 18,769 16,058 Total property, plant and equipment, net 381,348 389,767 Accounts payable (232) (175) Accrued taxes other than income taxes (467) (958) |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
All Dale Minerals III | |
Investments | |
Schedule of changes in equity method investments | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Beginning balance $ 23,558 $ 24,695 $ 23,933 $ 25,284 Equity method investment income 778 716 1,285 1,141 Distributions received (1,118) (960) (2,000) (1,974) Ending balance $ 23,218 $ 24,451 $ 23,218 $ 24,451 |
Francis Renewable Energy | |
Investments | |
Schedule of changes in equity method investments | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Beginning balance $ 15,390 $ 20,000 $ 16,487 $ 20,000 Equity method investment loss (872) (2,620) (1,969) (2,620) Ending balance $ 14,518 $ 17,380 $ 14,518 $ 17,380 |
NGP ET IV | |
Investments | |
Schedule of changes in equity method investments | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Beginning balance $ 6,745 $ 4,254 $ 6,083 $ 4,087 Contributions 665 794 1,290 1,334 Equity method investment income (loss) (58) (90) (21) (463) Ending balance $ 7,352 $ 4,958 $ 7,352 $ 4,958 |
PARTNERS' CAPITAL (Tables)
PARTNERS' CAPITAL (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
PARTNERS' CAPITAL | |
Summary of quarterly per unit distribution paid | Payment Date Per Unit Cash Distribution Total Cash Distribution (in thousands) February 14, 2023 $ 0.70 $ 91,938 May 15, 2023 0.70 90,930 August 14, 2023 0.70 90,899 November 14, 2023 0.70 90,812 Total $ 2.80 $ 364,579 February 14, 2024 $ 0.70 $ 91,246 May 15, 2024 0.70 90,736 August 14, 2024 (1) 0.70 Total $ 2.10 $ 181,982 (1) On July 26, 2024, we declared this quarterly distribution payable on August 14, 2024 to all unitholders of record as of August 7, 2024. |
Summary of changes to Partners' Capital | Accumulated Number of Limited Other Limited Partner Partners' Comprehensive Noncontrolling Total Partners' Units Capital Income (Loss) Interest Capital (in thousands, except unit data) Balance at January 1, 2024 127,125,437 $ 1,896,027 $ (61,525) $ 24,095 $ 1,858,597 Cumulative-effect adjustment (see Note 2) — 6,232 — — 6,232 Comprehensive income: Net income — 158,057 — 1,510 159,567 Actuarially determined long-term liability adjustments — — 923 — 923 Total comprehensive income — — — — 160,490 Settlement of deferred compensation plans 936,544 (13,292) — — (13,292) Common unit-based compensation — 2,604 — — 2,604 Distributions on deferred common unit-based compensation — (2,261) — — (2,261) Distributions from consolidated company to noncontrolling interest — — — (1,981) (1,981) Distributions to Partners — (88,985) — — (88,985) Balance at March 31, 2024 128,061,981 1,958,382 (60,602) 23,624 1,921,404 Comprehensive income: Net income — 100,187 — 1,322 101,509 Actuarially determined long-term liability adjustments — — 957 — 957 Total comprehensive income 102,466 Common unit-based compensation — 2,926 — — 2,926 Distributions on deferred common unit-based compensation — (1,091) — — (1,091) Distributions from consolidated company to noncontrolling interest — — — (1,942) (1,942) Distributions to Partners — (89,645) — — (89,645) Balance at June 30, 2024 128,061,981 $ 1,970,759 $ (59,645) $ 23,004 $ 1,934,118 Accumulated Number of Limited General Other Limited Partner Partners' Partner's Comprehensive Noncontrolling Total Partners' Units Capital Capital Income (Loss) Interest Capital (in thousands, except unit data) Balance at January 1, 2023 127,195,219 $ 1,656,025 $ 66,548 $ (41,054) $ 26,507 $ 1,708,026 Comprehensive income: Net income — 189,801 1,384 — 1,493 192,678 Actuarially determined long-term liability adjustments — — — 565 — 565 Total comprehensive income 193,243 Settlement of deferred compensation plans 860,060 (9,320) — — — (9,320) Purchase of units under unit repurchase program (860,060) (18,209) — — — (18,209) Common unit-based compensation — 2,830 — — — 2,830 Distributions on deferred common unit-based compensation — (2,901) — — — (2,901) Distributions from consolidated company to affiliate noncontrolling interest — — — — (2,288) (2,288) JC Resources acquisition (7,251) (64,999) (72,250) Cash retained by JC Resources in acquisition — — (2,933) — — (2,933) Distributions to Partners — (89,037) — — — (89,037) Balance at March 31, 2023 127,195,219 1,721,938 — (40,489) 25,712 1,707,161 Comprehensive income: Net income — 169,790 — — 1,515 171,305 Actuarially determined long-term liability adjustments — — — 563 — 563 Total comprehensive income 171,868 Settlement of deferred compensation plans — (1,014) — — — (1,014) Purchase of units under unit repurchase program (69,782) (1,223) — — — (1,223) Common unit-based compensation — 3,121 — — — 3,121 Distributions on deferred common unit-based compensation — (1,895) — — — (1,895) Distributions from consolidated company to noncontrolling interest — — — — (2,226) (2,226) Distributions to Partners — (89,035) — — — (89,035) Balance at June 30, 2023 127,125,437 $ 1,801,682 $ — $ (39,926) $ 25,001 $ 1,786,757 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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) Three Months Ended June 30, 2024 Coal sales $ 331,973 $ 180,686 $ — $ — $ — $ 512,659 Oil & gas royalties — — 36,429 — — 36,429 Coal royalties — — — 16,584 (16,584) — Transportation revenues 20,570 6,131 — — — 26,701 Other revenues 2,218 1,396 8 4 13,935 17,561 Total revenues $ 354,761 $ 188,213 $ 36,437 $ 16,588 $ (2,649) $ 593,350 Three Months Ended June 30, 2023 Coal sales $ 331,813 $ 228,518 $ — $ — $ — $ 560,331 Oil & gas royalties — — 33,087 — — 33,087 Coal royalties — — — 16,567 (16,567) — Transportation revenues 21,178 9,349 — — — 30,527 Other revenues 2,401 375 325 — 14,790 17,891 Total revenues $ 355,392 $ 238,242 $ 33,412 $ 16,567 $ (1,777) $ 641,836 Six Months Ended June 30, 2024 Coal sales $ 702,603 $ 371,935 $ — $ — $ — $ 1,074,538 Oil & gas royalties — — 73,459 — — 73,459 Coal royalties — — — 35,286 (35,286) — Transportation revenues 45,046 12,408 — — — 57,454 Other revenues 4,953 1,883 323 10 32,427 39,596 Total revenues $ 752,602 $ 386,226 $ 73,782 $ 35,296 $ (2,859) $ 1,245,047 Six Months Ended June 30, 2023 Coal sales $ 668,723 $ 470,392 $ — $ — $ — $ 1,139,115 Oil & gas royalties — — 67,584 — — 67,584 Coal royalties — — — 32,080 (32,080) — Transportation revenues 42,506 18,259 — — — 60,765 Other revenues 4,569 850 1,365 — 30,510 37,294 Total revenues $ 715,798 $ 489,501 $ 68,949 $ 32,080 $ (1,570) $ 1,304,758 |
Schedule of current coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied | 2027 and 2024 2025 2026 Thereafter Total (in thousands) Illinois Basin Coal Operations coal revenues $ 682,321 $ 580,348 $ 351,675 $ 355,100 $ 1,969,444 Appalachia Coal Operations coal revenues 417,101 376,303 84,410 30,105 907,919 Total coal revenues (1) $ 1,099,422 $ 956,651 $ 436,085 $ 385,205 $ 2,877,363 (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) | 6 Months Ended |
Jun. 30, 2024 | |
EARNINGS PER LIMITED PARTNER UNIT | |
Reconciliation of net income (loss) and EPU calculations | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands, except per unit data) Net income attributable to ARLP $ 100,187 $ 169,790 $ 258,244 $ 360,975 Less: General partner's interest in net income attributable to ARLP — — — (1,384) Limited partners' interest in net income attributable to ARLP 100,187 169,790 258,244 359,591 Less: Distributions to participating securities (1,688) (2,396) (3,368) (4,828) Undistributed earnings attributable to participating securities (164) (2,071) (1,518) (4,981) Net income attributable to ARLP available to limited partners $ 98,335 $ 165,323 $ 253,358 $ 349,782 Weighted-average limited partner units outstanding – basic and diluted 128,062 127,183 127,866 127,236 Earnings per limited partner unit - basic and diluted (1) $ 0.77 $ 1.30 $ 1.98 $ 2.75 (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. The combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 1,726 and 1,945 for the three and six months ended June 30, 2024, respectively, and 2,577 and 2,896 for the three and six months ended June 30, 2023, respectively, were considered anti-dilutive under the treasury stock method . |
WORKERS' COMPENSATION AND PNE_2
WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Black lung benefits: | |
Reconciliation of changes in workers' compensation liability | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Beginning balance $ 47,561 $ 50,017 $ 47,975 $ 49,452 Changes in accruals 3,365 2,196 6,490 6,070 Payments (3,446) (2,646) (7,494) (6,505) Interest accretion 509 551 1,018 1,101 Valuation loss (gain) (1) (795) 990 (795) 990 Ending balance $ 47,194 $ 51,108 $ 47,194 $ 51,108 (1) Our estimate of the liability for the present value of current workers′ compensation benefits is based on our actuarial calculations. Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claims development patterns, mortality, medical costs and interest rates. The valuation gain in 2024 is due to an increase in the discount rate from 4.66% on December 31, 2023 to 5.18% on June 30, 2024. The valuation loss in 2023 is due to adverse claims development. |
Pneumoconiosis benefits | |
Black lung benefits: | |
Components of net periodic benefit cost | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Service cost $ 858 $ 675 $ 1,719 $ 1,344 Interest cost (1) 1,558 1,238 3,116 2,476 Net amortization (1) 839 346 1,678 691 Net periodic benefit cost $ 3,255 $ 2,259 $ 6,513 $ 4,511 (1) Interest cost and net amortization are included in the Other income (expense) line item within our condensed consolidated statements of income. |
COMMON UNIT-BASED COMPENSATIO_2
COMMON UNIT-BASED COMPENSATION PLANS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
ARLP LTIP | |
COMMON UNIT-BASED COMPENSATION PLANS | |
Summary of non-vested share activity | Number of units Weighted average grant date fair value per unit Intrinsic value (in thousands) Non-vested grants at January 1, 2024 2,710,344 $ 10.91 51,405 Granted (1) 455,574 19.69 Vested (2) (1,582,422) 6.53 Forfeited (38,204) 16.08 Non-vested grants at June 30, 2024 1,545,292 17.87 37,798 (1) The restricted units granted during 2024 have certain minimum-value guarantees per unit, regardless of whether the awards vest. (2) During the six months ended June 30, 2024, we issued 936,544 unrestricted common units to the LTIP participants. The remaining vested units were settled in cash to satisfy tax withholding. |
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, 2024 811,946 $ 20.44 $ 17,197 Granted 53,770 21.18 Phantom units outstanding as of June 30, 2024 865,716 20.48 21,175 |
COMPONENTS OF PENSION PLAN NE_2
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Defined benefit pension plan | |
Employee Benefit Plans | |
Components of net periodic benefit cost | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Interest cost $ 1,269 $ 1,296 $ 2,528 $ 2,591 Expected return on plan assets (1,761) (1,517) (3,526) (3,115) Amortization of prior service cost 46 46 93 93 Amortization of net loss 72 171 109 344 Net periodic benefit credit (1) $ (374) $ (4) $ (796) $ (87) (1) Net periodic benefit credit for the Pension Plan is included in the Other income (expense) line item within our condensed consolidated statements of income. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
SEGMENT INFORMATION | |
Schedule of reportable segment results | Reportable segment results are presented below. Coal Operations Royalties Other, Illinois Corporate and Basin Appalachia Oil & Gas Coal Elimination Consolidated (in thousands) Three Months Ended June 30, 2024 Revenues - Outside (1) $ 354,761 $ 188,213 $ 36,437 $ 4 $ 13,935 $ 593,350 Revenues - Intercompany — — — 16,584 (16,584) — Total revenues (1) 354,761 188,213 36,437 16,588 (2,649) 593,350 Segment Adjusted EBITDA Expense (2) 216,168 136,762 4,635 6,632 (1,026) 363,171 Segment Adjusted EBITDA (3) 118,023 45,319 31,258 9,955 (2,551) 202,004 Capital expenditures (4) 65,973 32,793 — — 2,676 101,442 Three Months Ended June 30, 2023 Revenues - Outside (1) $ 355,392 $ 238,242 $ 33,412 $ — $ 14,790 $ 641,836 Revenues - Intercompany — — — 16,567 (16,567) — Total revenues (1) 355,392 238,242 33,412 16,567 (1,777) 641,836 Segment Adjusted EBITDA Expense (2) 214,666 119,319 3,562 5,597 (4,710) 338,434 Segment Adjusted EBITDA (3) 119,551 109,573 29,050 10,970 222 269,366 Capital expenditures (4) 57,469 31,309 40 — 725 89,543 Six Months Ended June 30, 2024 Revenues - Outside (1) $ 752,602 $ 386,226 $ 73,782 $ 10 $ 32,427 $ 1,245,047 Revenues - Intercompany — — — 35,286 (35,286) — Total revenues (1) 752,602 386,226 73,782 35,296 (2,859) 1,245,047 Segment Adjusted EBITDA Expense (2) 449,255 254,264 9,575 12,896 (4,492) 721,498 Segment Adjusted EBITDA (3) 258,301 119,554 62,660 22,399 (356) 462,558 Total assets 1,011,972 552,796 793,416 316,505 378,257 3,052,946 Capital expenditures (4) 162,106 59,244 — — 3,938 225,288 Six Months Ended June 30, 2023 Revenues - Outside (1) $ 715,798 $ 489,501 $ 68,949 $ — $ 30,510 $ 1,304,758 Revenues - Intercompany — — — 32,080 (32,080) — Total revenues (1) 715,798 489,501 68,949 32,080 (1,570) 1,304,758 Segment Adjusted EBITDA Expense (2) 421,735 245,118 7,986 10,985 (8,094) 677,730 Segment Adjusted EBITDA (3) 251,559 226,123 59,095 21,095 3,441 561,313 Total assets 830,821 470,929 758,816 322,926 404,451 2,787,943 Capital expenditures (4) 119,451 63,814 42 400 1,310 185,017 (1) Revenues included in the Other, Corporate and Elimination column are attributable to intercompany eliminations, which are primarily intercompany coal royalty eliminations, outside revenues at the Matrix Group and awarded digital assets received for our crypto-mining activities. (2) Segment Adjusted EBITDA Expense (a non-GAAP financial measure) includes operating expenses, coal purchases, if applicable, and other income or expense as adjusted to remove certain items from operating expenses that we characterize as unrepresentative of our ongoing operations such as certain litigation accruals. Transportation expenses are excluded as these expenses are passed through to our customers and, consequently, we do not realize any gain or loss on transportation revenues. Segment Adjusted EBITDA Expense is used as a supplemental financial measure by our management to assess the operating performance of our segments. Segment Adjusted EBITDA Expense is a key component of Segment Adjusted EBITDA in addition to coal sales, royalty revenues and other revenues. The exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA Expense allows management to focus solely on the evaluation of segment operating performance as it primarily relates to our operating expenses. The following is a reconciliation of Operating expenses (excluding depreciation, depletion and amortization), Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Operating expenses (excluding depreciation, depletion and amortization) $ 351,605 $ 334,402 $ 715,464 $ 673,125 Litigation expense accrual — — (15,250) — Outside coal purchases 10,608 4,209 19,720 4,209 Other expense 958 (177) 1,564 396 Segment Adjusted EBITDA Expense $ 363,171 $ 338,434 $ 721,498 $ 677,730 (3) Segment Adjusted EBITDA (a non-GAAP financial measure) is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses modified for certain items that we characterize as unrepresentative of our ongoing operations, such as the change in fair value of digital assets and certain litigation accruals. Segment Adjusted EBITDA is a key component of consolidated EBITDA, which is used as a supplemental financial measure by management and by external users of our financial statements such as investors, commercial banks, research analysts and others. We believe that the presentation of EBITDA provides useful information to investors regarding our performance and results of operations because EBITDA, when used in conjunction with related GAAP financial measures, (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation and planning decisions and (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations. Segment Adjusted EBITDA is also used as a supplemental financial measure by our management for reasons similar to those stated in the previous explanation of EBITDA. In addition, the exclusion of corporate general and administrative expenses from consolidated Segment Adjusted EBITDA allows management 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. The following is a reconciliation of Net income Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Net income $ 101,509 $ 171,305 $ 261,076 $ 363,983 Noncontrolling interest (1,322) (1,515) (2,832) (3,008) Net income attributable to ARLP $ 100,187 $ 169,790 $ 258,244 $ 360,975 General and administrative 20,562 20,130 42,691 41,215 Depreciation, depletion and amortization 66,454 68,639 132,003 134,189 Interest expense, net 7,193 6,808 13,666 16,694 Change in fair value of digital assets 3,748 — (8,105) — Litigation expense accrual — — 15,250 — Income tax expense 3,860 3,999 8,809 8,240 Consolidated Segment Adjusted EBITDA $ 202,004 $ 269,366 $ 462,558 $ 561,313 (4) Capital expenditures exclude $72.3 million paid for the JC Resources Acquisition for the six months ended June 30, 2023, $2.9 million and $1.1 million paid towards oil & gas reserve acquisitions for the three months ended June 30, 2024 and 2023, respectively, and $4.7 million and $3.9 million paid towards oil & gas reserve acquisitions for the six months ended June 30, 2024 and 2023, respectively (See Note 3 – Acquisitions) . |
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization) | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Operating expenses (excluding depreciation, depletion and amortization) $ 351,605 $ 334,402 $ 715,464 $ 673,125 Litigation expense accrual — — (15,250) — Outside coal purchases 10,608 4,209 19,720 4,209 Other expense 958 (177) 1,564 396 Segment Adjusted EBITDA Expense $ 363,171 $ 338,434 $ 721,498 $ 677,730 |
Reconciliation of consolidated Segment Adjusted EBITDA to net income | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Net income $ 101,509 $ 171,305 $ 261,076 $ 363,983 Noncontrolling interest (1,322) (1,515) (2,832) (3,008) Net income attributable to ARLP $ 100,187 $ 169,790 $ 258,244 $ 360,975 General and administrative 20,562 20,130 42,691 41,215 Depreciation, depletion and amortization 66,454 68,639 132,003 134,189 Interest expense, net 7,193 6,808 13,666 16,694 Change in fair value of digital assets 3,748 — (8,105) — Litigation expense accrual — — 15,250 — Income tax expense 3,860 3,999 8,809 8,240 Consolidated Segment Adjusted EBITDA $ 202,004 $ 269,366 $ 462,558 $ 561,313 |
NEW ACCOUNTING STANDARDS (Detai
NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 |
New accounting pronouncements | |||
Fair value digital asset | $ 28,335 | $ 30,325 | $ 15,811 |
ASU 2023-08 - Crypto Assets | Cumulative Effect, Period of Adoption, Adjustment | |||
New accounting pronouncements | |||
Fair value digital asset | $ 6,200 |
ACQUISITIONS - Asset acquisitio
ACQUISITIONS - Asset acquisition (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Feb. 19, 2024 | Jan. 27, 2023 |
Acquisition Agreement | |||
Asset acquisition | |||
Funding commitment | $ 25 | $ 35 | |
Mineral interests in proved properties | $ 0.6 | ||
Mineral interests in unproved properties | 1.9 | ||
Miscellaneous Acquisitions | |||
Asset acquisition | |||
Mineral interests in proved properties | 0.6 | ||
Mineral interests in unproved properties | $ 1.6 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2024 | Jun. 30, 2024 | |
CONTINGENCIES | ||
Settlement awarded to other party | $ 15.3 | |
Settlement accrual | $ 15.3 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Inventory | ||
Coal | $ 118,171 | $ 56,549 |
Finished goods (net of reserve for obsolescence) | 4,109 | 3,908 |
Work in process | 708 | 791 |
Raw materials | 2,107 | 2,144 |
Total operating inventories, net | 125,095 | 63,392 |
Supplies (net of reserve for obsolescence) | 71,130 | 64,164 |
Total inventories, net | 196,225 | 127,556 |
Reduce inventory carrying value to market | 16,900 | |
Manufactured goods | ||
Inventory | ||
Reserve for obsolescence | 784 | 728 |
Supplies | ||
Inventory | ||
Reserve for obsolescence | $ 7,758 | $ 7,439 |
DIGITAL ASSETS - Balance sheet
DIGITAL ASSETS - Balance sheet (Details) $ in Thousands | Jun. 30, 2024 USD ($) item | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Crypto Assets | |||
Cost Basis | $ 15,071 | ||
Fair Value | $ 28,335 | $ 30,325 | $ 15,811 |
Bitcoin | |||
Crypto Assets | |||
Units | item | 452 | ||
Cost Basis | $ 15,071 | ||
Fair Value | $ 28,335 |
DIGITAL ASSETS - Reconciliation
DIGITAL ASSETS - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Digital assets reconciliation | ||
Digital asset, Beginning Balance | $ 30,325 | $ 15,811 |
Additions | 2,535 | 6,139 |
Dispositions | (777) | (1,720) |
Fair value gains (losses) | (3,748) | 8,105 |
Digital asset, Ending Balance | 28,335 | 28,335 |
Realized gains on disposal of digital assets | $ 500 | $ 1,100 |
DIGITAL ASSETS - Adoption (Deta
DIGITAL ASSETS - Adoption (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 |
New accounting pronouncements | |||
Fair value digital asset | $ 28,335 | $ 30,325 | $ 15,811 |
ASU 2023-08 - Crypto Assets | Cumulative Effect, Period of Adoption, Adjustment | |||
New accounting pronouncements | |||
Fair value digital asset | $ 6,200 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 |
FAIR VALUE MEASUREMENTS | |||
Fair Value | $ 28,335 | $ 30,325 | $ 15,811 |
Estimated fair value | Significant Observable Inputs (Level 2) | |||
FAIR VALUE MEASUREMENTS | |||
Long-term debt | 527,126 | 347,116 | |
Estimated fair value | Recurring | Quoted Prices In Active Markets For Identical Assets (Level 1) | |||
FAIR VALUE MEASUREMENTS | |||
Fair Value | 28,335 | ||
Carrying Value | |||
FAIR VALUE MEASUREMENTS | |||
Long-term debt | 503,465 | $ 347,584 | |
Carrying Value | Recurring | |||
FAIR VALUE MEASUREMENTS | |||
Fair Value | $ 28,335 |
LONG-TERM DEBT - Components (De
LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 12, 2024 | Dec. 31, 2023 | Jan. 13, 2023 | Apr. 24, 2017 |
Principal | |||||
Aggregate maturities of long-term debt | $ 503,465 | $ 347,584 | |||
Less current maturities | (26,411) | (20,789) | |||
Total long-term debt | 477,054 | 326,795 | |||
Unamortized Discount and Debt Issuance Costs | |||||
Unamortized debt issuance costs including current and non-current | (19,441) | (10,425) | |||
Less current maturities | 4,382 | 451 | |||
Total unamortized debt issuance costs | (15,059) | (9,974) | |||
Revolving credit facility | |||||
Unamortized Discount and Debt Issuance Costs | |||||
Unamortized debt issuance costs including current and non-current | (8,344) | (8,118) | |||
Term loan | |||||
Principal | |||||
Aggregate maturities of long-term debt | 52,734 | 60,938 | |||
Unamortized Discount and Debt Issuance Costs | |||||
Unamortized debt issuance costs including current and non-current | (1,473) | (1,416) | |||
Interest rate (as a percent) | 6.25% | ||||
2029 Senior Notes | |||||
Principal | |||||
Aggregate maturities of long-term debt | 400,000 | ||||
Unamortized Discount and Debt Issuance Costs | |||||
Unamortized debt issuance costs including current and non-current | $ (9,624) | ||||
Interest rate (as a percent) | 8.625% | 8.625% | |||
7.5% Senior notes due 2025 | |||||
Principal | |||||
Aggregate maturities of long-term debt | 284,607 | ||||
Unamortized Discount and Debt Issuance Costs | |||||
Unamortized debt issuance costs including current and non-current | (891) | ||||
Interest rate (as a percent) | 7.50% | 7.50% | |||
June 2020 equipment financing | |||||
Principal | |||||
Aggregate maturities of long-term debt | $ 2,039 | ||||
February 2024 equipment financing | |||||
Principal | |||||
Aggregate maturities of long-term debt | $ 50,731 |
LONG-TERM DEBT - Credit Facilit
LONG-TERM DEBT - Credit Facility (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jan. 13, 2023 | Jun. 30, 2024 | Jun. 12, 2024 | |
Credit Agreement | |||
Long-Term Debt | |||
Maximum borrowing capacity | $ 425 | ||
Increase of maximum borrowing capacity | 100 | ||
Minimum liquidity to extend maturity | $ 200 | ||
Letters of credit outstanding | $ 41 | ||
Debt available for borrowing | $ 384 | ||
Annual commitment fee percentage, undrawn portion | 0.50% | ||
Minimum debt to cash flow ratio for restriction to apply on cash distribution | 1 | ||
ARLP debt arrangements requirements, period over which the ratios are required to be maintained | 12 months | ||
Credit Agreement | Maximum | |||
Long-Term Debt | |||
Interest coverage ratio | 3 | ||
Actual cash flow to interest expense ratio for trailing twelve months | 49.06 | ||
Credit Agreement | Minimum | |||
Long-Term Debt | |||
Interest coverage ratio | 1 | ||
Actual cash flow to interest expense ratio for trailing twelve months | 1 | ||
Credit Agreement | Overnight Bank Funding Rate | |||
Long-Term Debt | |||
Basis spread for variable interest rate (as a percent) | 0.50% | ||
Credit Agreement | Daily Simple Secured Overnight Financing Rate | |||
Long-Term Debt | |||
Basis spread for variable interest rate (as a percent) | 1% | ||
Credit Agreement | Alliance Coal | Maximum | |||
Long-Term Debt | |||
ARLP debt arrangements requirements, debt to cash flow ratio | 1.5 | 1 | |
Credit Agreement | Alliance Coal | Minimum | |||
Long-Term Debt | |||
ARLP debt arrangements requirements, debt to cash flow ratio | 1 | ||
Actual debt to cash flow ratio for trailing twelve months | 0.16 | ||
Credit Agreement | Alliance Coal and Intermediate Partnership | Maximum | |||
Long-Term Debt | |||
ARLP debt arrangements requirements, debt to cash flow ratio | 2.5 | ||
Actual debt to cash flow ratio for trailing twelve months | 1 | ||
Credit Agreement | Alliance Coal and Intermediate Partnership | Minimum | |||
Long-Term Debt | |||
ARLP debt arrangements requirements, debt to cash flow ratio | 1 | ||
Actual debt to cash flow ratio for trailing twelve months | 0.78 | ||
Swingline subfacility | |||
Long-Term Debt | |||
Maximum borrowing capacity | $ 15 | ||
Term loan | |||
Long-Term Debt | |||
Maximum borrowing term loan | $ 75 | ||
Interest rate (as a percent) | 6.25% | ||
Effective interest rate (as a percent) | 8.70% | ||
Senior Notes 8.625 Due 2029 [Member] | |||
Long-Term Debt | |||
Interest rate (as a percent) | 8.625% | 8.625% |
LONG-TERM DEBT - Senior Notes (
LONG-TERM DEBT - Senior Notes (Details) - USD ($) $ in Millions | Jun. 12, 2024 | Apr. 24, 2017 | Jun. 30, 2024 |
2029 Senior Notes | |||
Issuance of Senior Notes | |||
Principal amount | $ 400 | ||
Term | 5 years | ||
Interest rate (as a percent) | 8.625% | 8.625% | |
2029 Senior Notes | Scenario One | |||
Issuance of Senior Notes | |||
Maximum redeemable debt (as a percent) | 35% | ||
Redemption price to principal (as a percent) | 108.625% | ||
2029 Senior Notes | Scenario Two | |||
Issuance of Senior Notes | |||
Maximum redeemable debt (as a percent) | 40% | ||
Redemption price to principal (as a percent) | 108.625% | ||
7.5% Senior notes due 2025 | |||
Issuance of Senior Notes | |||
Principal amount | $ 400 | ||
Term | 8 years | ||
Interest rate (as a percent) | 7.50% | 7.50% |
LONG-TERM DEBT - Securitization
LONG-TERM DEBT - Securitization Facility (Details) - Securitization facility $ in Millions | Jun. 30, 2024 USD ($) |
Long-Term Debt | |
Maximum borrowing capacity | $ 90 |
Letters of credit outstanding | 11.7 |
Debt available for borrowing | $ 78.3 |
LONG-TERM DEBT - Equipment fina
LONG-TERM DEBT - Equipment financing and other (Details) - USD ($) $ in Millions | Feb. 28, 2024 | Jun. 05, 2020 |
June 2020 equipment financing | ||
Long-Term Debt | ||
Principal amount | $ 14.7 | |
Term | 48 months | |
Effective interest rate (as a percent) | 6.10% | |
February 2024 equipment financing | ||
Long-Term Debt | ||
Principal amount | $ 54.6 | |
Term | 48 months | |
Effective interest rate (as a percent) | 8.29% |
INCOME TAXES - Components (Deta
INCOME TAXES - Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Current: | ||||
Federal | $ 4,506 | $ 3,935 | $ 9,224 | $ 8,247 |
State | 317 | 272 | 655 | 573 |
Total current income tax expense | 4,823 | 4,207 | 9,879 | 8,820 |
Deferred: | ||||
Federal | (839) | (190) | (966) | (521) |
State | (124) | (18) | (104) | (59) |
Total deferred income tax expense | (963) | (208) | (1,070) | (580) |
Income tax expense | $ 3,860 | $ 3,999 | $ 8,809 | $ 8,240 |
VARIABLE INTEREST ENTITIES - Al
VARIABLE INTEREST ENTITIES - AllDale (Detail) | 6 Months Ended |
Jun. 30, 2024 | |
AllDale I & II | Cavalier Minerals | |
Equity Investments | |
Ownership percentage by limited partners | 72% |
Cavalier Minerals | |
Equity Investments | |
Ownership interest in VIE (as a percent) | 96% |
Cavalier Minerals | Bluegrass Minerals | |
Equity Investments | |
Distributions to be received (as a percent) | 25% |
Noncontrolling ownership interest (as a percent) | 4% |
All Dale Minerals III | |
Equity Investments | |
Distribution after hurdles (as a percent) | 25% |
Specified internal rate of return (as a percent) | 10% |
Percentage of available cash distributed | 125% |
Variable Interest Entity, Primary Beneficiary | AllDale I and II | AllDale I & II | |
Equity Investments | |
Ownership percentage by limited partners | 97% |
Variable Interest Entity, Primary Beneficiary | AllDale I and II | General Partners' Capital | |
Equity Investments | |
Distributions to be received (as a percent) | 20% |
Variable Interest Entity, Primary Beneficiary | AllDale I and II | Limited Partners' Capital | |
Equity Investments | |
Distributions to be received (as a percent) | 80% |
Variable Interest Entity, Not Primary Beneficiary | All Dale Minerals III | All Dale Minerals III | |
Equity Investments | |
Ownership percentage by limited partners | 13.90% |
VARIABLE INTEREST ENTITIES - Ba
VARIABLE INTEREST ENTITIES - Bal Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures | ||
Cash and cash equivalents | $ 203,703 | $ 59,813 |
Trade receivables | 226,436 | 282,622 |
Total property, plant and equipment, net | 2,110,112 | 2,022,663 |
Accounts payable | (131,547) | (108,269) |
Accrued taxes other than income taxes | (22,291) | (21,007) |
AllDale I and II | ||
Balance Sheet Related Disclosures | ||
Cash and cash equivalents | 3,259 | 4,690 |
Trade receivables | 18,769 | 16,058 |
Total property, plant and equipment, net | 381,348 | 389,767 |
Accounts payable | (232) | (175) |
Accrued taxes other than income taxes | $ (467) | $ (958) |
VARIABLE INTEREST ENTITIES - In
VARIABLE INTEREST ENTITIES - Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 02, 2022 | Apr. 05, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity Investments | ||||||
Contributions to equity method investments | $ 1,290 | $ 1,334 | ||||
Francis Renewable Energy | ||||||
Equity Investments | ||||||
Contributions to equity method investments | $ 20,000 | |||||
Francis Renewable Energy | Francis Renewable Energy | ||||||
Equity Investments | ||||||
Ownership percentage by limited partners | 16.70% | |||||
NGP ET IV | ||||||
Equity Investments | ||||||
Contributions to equity method investments | $ 665 | $ 794 | $ 1,290 | $ 1,334 | ||
Funding commitment | $ 25,000 | |||||
Contributions to investee to date | $ 7,900 | $ 7,900 | ||||
NGP ET IV | NGP ET IV | ||||||
Equity Investments | ||||||
Ownership percentage by limited partners | 3.60% |
EQUITY INVESTMENTS - Equity met
EQUITY INVESTMENTS - Equity method (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 05, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity Investments | |||||
Beginning balance | $ 46,503 | ||||
Contributions | 1,290 | $ 1,334 | |||
Equity method investment income (loss) | $ (152) | $ (1,994) | (705) | (1,942) | |
Other income (expense) | (958) | 177 | (1,564) | (396) | |
Ending balance | 45,088 | 45,088 | |||
All Dale Minerals III | |||||
Equity Investments | |||||
Beginning balance | 23,558 | 24,695 | 23,933 | 25,284 | |
Equity method investment income (loss) | 778 | 716 | 1,285 | 1,141 | |
Distributions received | (1,118) | (960) | (2,000) | (1,974) | |
Ending balance | 23,218 | 24,451 | 23,218 | 24,451 | |
Francis Renewable Energy | |||||
Equity Investments | |||||
Beginning balance | 15,390 | 20,000 | 16,487 | 20,000 | |
Contributions | $ 20,000 | ||||
Equity method investment income (loss) | (872) | (2,620) | (1,969) | (2,620) | |
Ending balance | 14,518 | 17,380 | 14,518 | 17,380 | |
NGP ET IV | |||||
Equity Investments | |||||
Beginning balance | 6,745 | 4,254 | 6,083 | 4,087 | |
Contributions | 665 | 794 | 1,290 | 1,334 | |
Equity method investment income (loss) | (58) | (90) | (21) | (463) | |
Ending balance | $ 7,352 | $ 4,958 | $ 7,352 | $ 4,958 |
EQUITY INVESTMENTS - Non-equity
EQUITY INVESTMENTS - Non-equity method (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 08, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Dec. 31, 2023 | Aug. 22, 2023 | |
Equity securities without readily determinable fair value | |||||
Equity securities | $ 92,541 | $ 92,541 | |||
Infinitum Electric | |||||
Equity securities without readily determinable fair value | |||||
Contributions | $ 24,600 | $ 42,000 | |||
Ascend | |||||
Equity securities without readily determinable fair value | |||||
Equity securities | $ 25,000 |
PARTNERS' CAPITAL - Distributio
PARTNERS' CAPITAL - Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||||
Aug. 14, 2024 | May 15, 2024 | Feb. 14, 2024 | Nov. 14, 2023 | Aug. 14, 2023 | May 15, 2023 | Feb. 14, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
PARTNERS' CAPITAL | ||||||||||
Quarterly distribution paid (in dollars per unit) | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.70 | $ 2.10 | $ 2.80 | |
Total Cash Distribution | $ 90,736 | $ 91,246 | $ 90,812 | $ 90,899 | $ 90,930 | $ 91,938 | $ 181,982 | $ 182,868 | $ 364,579 |
PARTNERS' CAPITAL - Narrative (
PARTNERS' CAPITAL - Narrative (Details) - Limited Partners' Capital - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Partners' capital | |||
Increase in authorization amount | $ 93.5 | ||
Repurchase and retire authorization | $ 100 | ||
Number of units retired | 0 | 929,842 | |
Treasury units retired | $ 19.4 | ||
Repurchase price (in dollars per unit) | $ 20.90 | ||
Aggregate | |||
Partners' capital | |||
Number of units retired | 6,390,446 | ||
Treasury units retired | $ 112.9 | ||
Repurchase price (in dollars per unit) | $ 17.67 |
PARTNERS' CAPITAL - Change (Det
PARTNERS' CAPITAL - Change (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (decrease) in Partners' Capital | ||||||
Balance at beginning of period | $ 1,921,404 | $ 1,858,597 | $ 1,707,161 | $ 1,708,026 | $ 1,858,597 | $ 1,708,026 |
Balance at beginning of period (in units) | 127,125,437 | 127,125,437 | ||||
Comprehensive income (loss): | ||||||
Net income | 101,509 | $ 159,567 | 171,305 | 192,678 | $ 261,076 | 363,983 |
Actuarially determined long-term liability adjustments | 957 | 923 | 563 | 565 | 1,880 | 1,128 |
COMPREHENSIVE INCOME | 102,466 | 160,490 | 171,868 | 193,243 | 262,956 | 365,111 |
Settlement of deferred compensation plans | (13,292) | (1,014) | (9,320) | |||
Purchase of units under unit repurchase program | (1,223) | (18,209) | ||||
Common unit-based compensation | 2,926 | 2,604 | 3,121 | 2,830 | ||
Distributions on deferred common unit-based compensation | (1,091) | (2,261) | (1,895) | (2,901) | ||
Distributions from consolidated company to noncontrolling interest | (1,942) | (1,981) | (2,226) | (2,288) | ||
JC Resources acquisition | (72,250) | |||||
Cash retained by JC Resources in acquisition | (2,933) | |||||
Distributions to Partners | (89,645) | (88,985) | (89,035) | (89,037) | ||
Balance at end of period | $ 1,934,118 | 1,921,404 | 1,786,757 | 1,707,161 | $ 1,934,118 | 1,786,757 |
Balance at end of period (in units) | 128,061,981 | 128,061,981 | ||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Increase (decrease) in Partners' Capital | ||||||
Balance at beginning of period | 6,232 | $ 6,232 | ||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Increase (decrease) in Partners' Capital | ||||||
Balance at beginning of period | $ (60,602) | (61,525) | (40,489) | (41,054) | (61,525) | (41,054) |
Comprehensive income (loss): | ||||||
Actuarially determined long-term liability adjustments | 957 | 923 | 563 | 565 | ||
Balance at end of period | (59,645) | (60,602) | (39,926) | (40,489) | (59,645) | (39,926) |
Noncontrolling Interest | ||||||
Increase (decrease) in Partners' Capital | ||||||
Balance at beginning of period | 23,624 | 24,095 | 25,712 | 26,507 | 24,095 | 26,507 |
Comprehensive income (loss): | ||||||
Net income | 1,322 | 1,510 | 1,515 | 1,493 | ||
Distributions from consolidated company to noncontrolling interest | (1,942) | (1,981) | (2,226) | (2,288) | ||
Balance at end of period | 23,004 | 23,624 | 25,001 | 25,712 | 23,004 | 25,001 |
Limited Partners' Capital | ||||||
Increase (decrease) in Partners' Capital | ||||||
Balance at beginning of period | $ 1,958,382 | $ 1,896,027 | $ 1,721,938 | $ 1,656,025 | $ 1,896,027 | $ 1,656,025 |
Balance at beginning of period (in units) | 128,061,981 | 127,125,437 | 127,195,219 | 127,195,219 | 127,125,437 | 127,195,219 |
Comprehensive income (loss): | ||||||
Net income | $ 100,187 | $ 158,057 | $ 169,790 | $ 189,801 | ||
Settlement of deferred compensation plans | $ (13,292) | (1,014) | $ (9,320) | |||
Settlement of deferred common unit- based compensation plans (in units) | 936,544 | 860,060 | ||||
Purchase of units under unit repurchase program | $ (1,223) | $ (18,209) | ||||
Purchase of units under unit repurchase program (in units) | (69,782) | (860,060) | ||||
Common unit-based compensation | 2,926 | $ 2,604 | $ 3,121 | $ 2,830 | ||
Distributions on deferred common unit-based compensation | (1,091) | (2,261) | (1,895) | (2,901) | ||
JC Resources acquisition | (7,251) | |||||
Distributions to Partners | (89,645) | (88,985) | (89,035) | (89,037) | ||
Balance at end of period | $ 1,970,759 | $ 1,958,382 | $ 1,801,682 | $ 1,721,938 | $ 1,970,759 | $ 1,801,682 |
Balance at end of period (in units) | 128,061,981 | 128,061,981 | 127,125,437 | 127,195,219 | 128,061,981 | 127,125,437 |
Limited Partners' Capital | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Increase (decrease) in Partners' Capital | ||||||
Balance at beginning of period | $ 6,232 | $ 6,232 | ||||
General Partners' Capital | ||||||
Increase (decrease) in Partners' Capital | ||||||
Balance at beginning of period | $ 66,548 | $ 66,548 | ||||
Comprehensive income (loss): | ||||||
Net income | 1,384 | |||||
JC Resources acquisition | (64,999) | |||||
Cash retained by JC Resources in acquisition | $ (2,933) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of revenues | ||||
Revenues | $ 593,350 | $ 641,836 | $ 1,245,047 | $ 1,304,758 |
Coal sales | ||||
Disaggregation of revenues | ||||
Revenues | 512,659 | 560,331 | 1,074,538 | 1,139,115 |
Oil & gas royalties | ||||
Disaggregation of revenues | ||||
Revenues | 36,429 | 33,087 | 73,459 | 67,584 |
Transportation | ||||
Disaggregation of revenues | ||||
Revenues | 26,701 | 30,527 | 57,454 | 60,765 |
Other revenues | ||||
Disaggregation of revenues | ||||
Revenues | 17,561 | 17,891 | 39,596 | 37,294 |
Coal Royalties | ||||
Disaggregation of revenues | ||||
Revenues | 16,588 | 16,567 | 35,296 | 32,080 |
Coal Royalties | Coal royalties | ||||
Disaggregation of revenues | ||||
Revenues | 16,584 | |||
Coal Royalties | Other revenues | ||||
Disaggregation of revenues | ||||
Revenues | 4 | |||
Operating segments | Illinois Basin Coal | ||||
Disaggregation of revenues | ||||
Revenues | 354,761 | 355,392 | 752,602 | 715,798 |
Operating segments | Illinois Basin Coal | Coal sales | ||||
Disaggregation of revenues | ||||
Revenues | 331,973 | 331,813 | 702,603 | 668,723 |
Operating segments | Illinois Basin Coal | Transportation | ||||
Disaggregation of revenues | ||||
Revenues | 20,570 | 21,178 | 45,046 | 42,506 |
Operating segments | Illinois Basin Coal | Other revenues | ||||
Disaggregation of revenues | ||||
Revenues | 2,218 | 2,401 | 4,953 | 4,569 |
Operating segments | Appalachia Coal | ||||
Disaggregation of revenues | ||||
Revenues | 188,213 | 238,242 | 386,226 | 489,501 |
Operating segments | Appalachia Coal | Coal sales | ||||
Disaggregation of revenues | ||||
Revenues | 180,686 | 228,518 | 371,935 | 470,392 |
Operating segments | Appalachia Coal | Transportation | ||||
Disaggregation of revenues | ||||
Revenues | 6,131 | 9,349 | 12,408 | 18,259 |
Operating segments | Appalachia Coal | Other revenues | ||||
Disaggregation of revenues | ||||
Revenues | 1,396 | 375 | 1,883 | 850 |
Operating segments | Oil & Gas Royalties | ||||
Disaggregation of revenues | ||||
Revenues | 36,437 | 33,412 | 73,782 | 68,949 |
Operating segments | Oil & Gas Royalties | Oil & gas royalties | ||||
Disaggregation of revenues | ||||
Revenues | 36,429 | 33,087 | 73,459 | 67,584 |
Operating segments | Oil & Gas Royalties | Other revenues | ||||
Disaggregation of revenues | ||||
Revenues | 8 | 325 | 323 | 1,365 |
Operating segments | Coal Royalties | ||||
Disaggregation of revenues | ||||
Revenues | 4 | 10 | ||
Operating segments | Coal Royalties | Coal royalties | ||||
Disaggregation of revenues | ||||
Revenues | 16,567 | 35,286 | 32,080 | |
Operating segments | Coal Royalties | Other revenues | ||||
Disaggregation of revenues | ||||
Revenues | 10 | |||
Other, Corporate and Elimination | ||||
Disaggregation of revenues | ||||
Revenues | (2,649) | (1,777) | (2,859) | (1,570) |
Other, Corporate and Elimination | Coal royalties | ||||
Disaggregation of revenues | ||||
Revenues | (16,584) | (16,567) | (35,286) | (32,080) |
Other, Corporate and Elimination | Other revenues | ||||
Disaggregation of revenues | ||||
Revenues | 13,935 | 14,790 | 32,427 | 30,510 |
Elimination | ||||
Disaggregation of revenues | ||||
Revenues | (16,584) | (16,567) | (35,286) | (32,080) |
Elimination | Coal Royalties | ||||
Disaggregation of revenues | ||||
Revenues | $ 16,584 | $ 16,567 | $ 35,286 | $ 32,080 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Supply contracts (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 2,877,363 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 1,099,422 |
Expected timing of satisfaction period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 956,651 |
Expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 436,085 |
Expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 385,205 |
Expected timing of satisfaction period | 1 year |
Illinois Basin Coal | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 1,969,444 |
Illinois Basin Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 682,321 |
Expected timing of satisfaction period | 6 months |
Illinois Basin Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 580,348 |
Expected timing of satisfaction period | 1 year |
Illinois Basin Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 351,675 |
Expected timing of satisfaction period | 1 year |
Illinois Basin Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 355,100 |
Expected timing of satisfaction period | 1 year |
Appalachia Coal | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 907,919 |
Appalachia Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 417,101 |
Expected timing of satisfaction period | 6 months |
Appalachia Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 376,303 |
Expected timing of satisfaction period | 1 year |
Appalachia Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 84,410 |
Expected timing of satisfaction period | 1 year |
Appalachia Coal | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 30,105 |
Expected timing of satisfaction period | 1 year |
EARNINGS PER LIMITED PARTNER _3
EARNINGS PER LIMITED PARTNER UNIT (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
EARNINGS PER LIMITED PARTNER UNIT | ||||
NET INCOME ATTRIBUTABLE TO ARLP | $ 100,187 | $ 169,790 | $ 258,244 | $ 360,975 |
General partner's interest in net income attributable to ARLP | (1,384) | |||
Limited partners' interest in net income attributable to ARLP | 100,187 | 169,790 | 258,244 | 359,591 |
Distributions to participating securities | (1,688) | (2,396) | (3,368) | (4,828) |
Undistributed earnings attributable to participating securities | (164) | (2,071) | (1,518) | (4,981) |
Net income (loss) attributable to ARLP available to limited partners | $ 98,335 | $ 165,323 | $ 253,358 | $ 349,782 |
Weighted-average limited partner units outstanding - basic (in units) | 128,061,981 | 127,183,439 | 127,866,439 | 127,236,097 |
Weighted-average limited partner units outstanding - diluted (in units) | 128,062,000 | 127,183,000 | 127,866,000 | 127,236,000 |
Earnings per limited partner unit - basic (in dollars per unit) | $ 0.77 | $ 1.30 | $ 1.98 | $ 2.75 |
Earnings per limited partner unit - diluted (in dollars per unit) | $ 0.77 | $ 1.30 | $ 1.98 | $ 2.75 |
Anti-dilutive under the treasury stock method (in units) | 1,726,000 | 2,577,000 | 1,945,000 | 2,896,000 |
WORKERS' COMPENSATION AND PNE_3
WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Roll forward (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Reconciliation of changes in the workers' compensation liability | |||||
Beginning balance | $ 47,561 | $ 50,017 | $ 47,975 | $ 49,452 | $ 49,452 |
Changes in accruals | 3,365 | 2,196 | 6,490 | 6,070 | |
Payments | (3,446) | (2,646) | (7,494) | (6,505) | |
Interest accretion | 509 | 551 | 1,018 | 1,101 | |
Valuation loss (gain) | (795) | 990 | (795) | 990 | |
Ending balance | 47,194 | $ 51,108 | $ 47,194 | $ 51,108 | $ 47,975 |
Estimated present value of future obligations and other information | |||||
Workers' compensation discount rate | 5.18% | 4.66% | |||
Other long-term assets | |||||
Estimated present value of future obligations and other information | |||||
Receivables for traumatic injury claims | $ 4,100 | $ 4,100 |
WORKERS' COMPENSATION AND PNE_4
WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Benefit cost (Details) - Pneumoconiosis benefits - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Black lung benefits: | ||||
Service cost | $ 858 | $ 675 | $ 1,719 | $ 1,344 |
Interest cost | $ 1,558 | $ 1,238 | $ 3,116 | $ 2,476 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Net amortization | $ 839 | $ 346 | $ 1,678 | $ 691 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Net periodic benefit cost | $ 3,255 | $ 2,259 | $ 6,513 | $ 4,511 |
COMMON UNIT-BASED COMPENSATIO_3
COMMON UNIT-BASED COMPENSATION PLANS - LTIP Grants (Details) - ARLP LTIP - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Number of units | ||
Balance at the beginning of the period (in units) | 2,710,344 | |
Granted (in units) | 455,574 | |
Vested (in units) | (1,582,422) | |
Forfeited (in units) | (38,204) | |
Balance at the end of the period (in units) | 1,545,292 | |
Weighted average grant date fair value per unit | ||
Balance at the beginning of the period (in dollars per unit) | $ 10.91 | |
Granted (in dollars per unit) | 19.69 | |
Vested (in dollars per unit) | 6.53 | |
Forfeited (in dollars per unit) | 16.08 | |
Balance at the end of the period (in dollars per unit) | $ 17.87 | |
Intrinsic value (in dollars) | ||
Intrinsic value of outstanding grants (in dollars) | $ 37,798 | $ 51,405 |
Other information | ||
Common units issued | 936,544 |
COMMON UNIT-BASED COMPENSATIO_4
COMMON UNIT-BASED COMPENSATION PLANS - LTIP Other (Details) - ARLP LTIP - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other information | ||||
Unit-based compensation expense | $ 2.3 | $ 2.7 | $ 4.4 | $ 4.9 |
Total unit-based obligation recorded | 13.5 | 13.5 | ||
Unrecognized compensation expense (in dollars) | $ 14.2 | $ 14.2 | ||
Weighted-average period for recognition of expense | 1 year 4 months 24 days |
COMMON UNIT-BASED COMPENSATIO_5
COMMON UNIT-BASED COMPENSATION PLANS - SERP and Directors (Details) - SERP and Deferred Compensation Plans - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Number of units | |||||
Balance at the beginning of the period (in units) | 811,946 | ||||
Granted (in units) | 53,770 | ||||
Balance at the end of the period (in units) | 865,716 | 865,716 | |||
Weighted average grant date fair value per unit | |||||
Balance at the beginning of the period (in dollars per unit) | $ 20.44 | ||||
Granted (in dollars per unit) | 21.18 | ||||
Balance at the end of the period (in dollars per unit) | $ 20.48 | $ 20.48 | |||
Intrinsic value (in dollars) | |||||
Intrinsic value of outstanding grants (in dollars) | $ 21,175 | $ 21,175 | $ 17,197 | ||
Other information | |||||
Unit-based compensation expense | 700 | $ 600 | 1,300 | $ 1,200 | |
Total unit-based obligation recorded | $ 17,700 | $ 17,700 |
COMPONENTS OF PENSION PLAN NE_3
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Details) - Defined benefit pension plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Components of net periodic benefit cost: | ||||
Interest cost | $ 1,269 | $ 1,296 | $ 2,528 | $ 2,591 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Expected return on plan assets | $ (1,761) | $ (1,517) | $ (3,526) | $ (3,115) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Amortization of prior service cost | $ 46 | $ 46 | $ 93 | $ 93 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Amortization of net loss | $ 72 | $ 171 | $ 109 | $ 344 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Net periodic benefit cost | $ (374) | $ (4) | $ (796) | $ (87) |
SEGMENT INFORMATION - General (
SEGMENT INFORMATION - General (Details) | 6 Months Ended |
Jun. 30, 2024 segment | |
SEGMENT INFORMATION | |
Number of reportable segments | 4 |
Number Of Coal Reportable Segments | 2 |
Number Of Mining Complex | 7 |
Percentage of coal sold by coal operations' mines leased from coal royalties entities | 63% |
SEGMENT INFORMATION - Segment R
SEGMENT INFORMATION - Segment Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Reportable segment results | |||||
Revenues | $ 593,350 | $ 641,836 | $ 1,245,047 | $ 1,304,758 | |
Segment Adjusted EBITDA Expense | 363,171 | 338,434 | 721,498 | 677,730 | |
Segment Adjusted EBITDA | 202,004 | 269,366 | 462,558 | 561,313 | |
Total assets | 3,052,946 | 2,787,943 | 3,052,946 | 2,787,943 | $ 2,788,426 |
Capital expenditures | 101,442 | 89,543 | 225,288 | 185,017 | |
Other revenues | |||||
Reportable segment results | |||||
Revenues | 17,561 | 17,891 | 39,596 | 37,294 | |
Coal Royalties | |||||
Reportable segment results | |||||
Revenues | 16,588 | 16,567 | 35,296 | 32,080 | |
Coal Royalties | Other revenues | |||||
Reportable segment results | |||||
Revenues | 4 | ||||
Operating segments | Illinois Basin Coal | |||||
Reportable segment results | |||||
Revenues | 354,761 | 355,392 | 752,602 | 715,798 | |
Segment Adjusted EBITDA Expense | 216,168 | 214,666 | 449,255 | 421,735 | |
Segment Adjusted EBITDA | 118,023 | 119,551 | 258,301 | 251,559 | |
Total assets | 1,011,972 | 830,821 | 1,011,972 | 830,821 | |
Capital expenditures | 65,973 | 57,469 | 162,106 | 119,451 | |
Operating segments | Illinois Basin Coal | Other revenues | |||||
Reportable segment results | |||||
Revenues | 2,218 | 2,401 | 4,953 | 4,569 | |
Operating segments | Appalachia Coal | |||||
Reportable segment results | |||||
Revenues | 188,213 | 238,242 | 386,226 | 489,501 | |
Segment Adjusted EBITDA Expense | 136,762 | 119,319 | 254,264 | 245,118 | |
Segment Adjusted EBITDA | 45,319 | 109,573 | 119,554 | 226,123 | |
Total assets | 552,796 | 470,929 | 552,796 | 470,929 | |
Capital expenditures | 32,793 | 31,309 | 59,244 | 63,814 | |
Operating segments | Appalachia Coal | Other revenues | |||||
Reportable segment results | |||||
Revenues | 1,396 | 375 | 1,883 | 850 | |
Operating segments | Oil & Gas Royalties | |||||
Reportable segment results | |||||
Revenues | 36,437 | 33,412 | 73,782 | 68,949 | |
Segment Adjusted EBITDA Expense | 4,635 | 3,562 | 9,575 | 7,986 | |
Segment Adjusted EBITDA | 31,258 | 29,050 | 62,660 | 59,095 | |
Total assets | 793,416 | 758,816 | 793,416 | 758,816 | |
Capital expenditures | 40 | 42 | |||
Operating segments | Oil & Gas Royalties | Other revenues | |||||
Reportable segment results | |||||
Revenues | 8 | 325 | 323 | 1,365 | |
Operating segments | Coal Royalties | |||||
Reportable segment results | |||||
Revenues | 4 | 10 | |||
Segment Adjusted EBITDA Expense | 6,632 | 5,597 | 12,896 | 10,985 | |
Segment Adjusted EBITDA | 9,955 | 10,970 | 22,399 | 21,095 | |
Total assets | 316,505 | 322,926 | 316,505 | 322,926 | |
Capital expenditures | 400 | ||||
Operating segments | Coal Royalties | Other revenues | |||||
Reportable segment results | |||||
Revenues | 10 | ||||
Other, Corporate and Elimination | |||||
Reportable segment results | |||||
Revenues | (2,649) | (1,777) | (2,859) | (1,570) | |
Segment Adjusted EBITDA Expense | (1,026) | (4,710) | (4,492) | (8,094) | |
Segment Adjusted EBITDA | (2,551) | 222 | (356) | 3,441 | |
Total assets | 378,257 | 404,451 | 378,257 | 404,451 | |
Capital expenditures | 2,676 | 725 | 3,938 | 1,310 | |
Other, Corporate and Elimination | Other revenues | |||||
Reportable segment results | |||||
Revenues | 13,935 | 14,790 | 32,427 | 30,510 | |
Elimination | |||||
Reportable segment results | |||||
Revenues | (16,584) | (16,567) | (35,286) | (32,080) | |
Elimination | Coal Royalties | |||||
Reportable segment results | |||||
Revenues | $ 16,584 | $ 16,567 | $ 35,286 | $ 32,080 |
SEGMENT INFORMATION - EBITDA Ex
SEGMENT INFORMATION - EBITDA Expense Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reconciliation of consolidated Segment Adjusted EBITDA Expense | ||||
Litigation expense accrual | $ (15,250) | |||
Outside coal purchases | $ 10,608 | $ 4,209 | 19,720 | $ 4,209 |
Other expense (income) | 958 | (177) | 1,564 | 396 |
Segment Adjusted EBITDA Expense | 363,171 | 338,434 | 721,498 | 677,730 |
Product | ||||
Reconciliation of consolidated Segment Adjusted EBITDA Expense | ||||
Operating expenses (excluding depreciation, depletion and amortization) | $ 351,605 | $ 334,402 | $ 715,464 | $ 673,125 |
SEGMENT INFORMATION - EBITDA Re
SEGMENT INFORMATION - EBITDA Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reconciliation of consolidated Segment Adjusted EBITDA to net income | ||||||
Net income | $ 101,509 | $ 159,567 | $ 171,305 | $ 192,678 | $ 261,076 | $ 363,983 |
Noncontrolling interest | (1,322) | (1,515) | (2,832) | (3,008) | ||
NET INCOME ATTRIBUTABLE TO ARLP | 100,187 | 169,790 | 258,244 | 360,975 | ||
General and administrative | 20,562 | 20,130 | 42,691 | 41,215 | ||
Depreciation, depletion and amortization | 66,454 | 68,639 | 132,003 | 134,189 | ||
Interest expense, net | 7,193 | 6,808 | 13,666 | 16,694 | ||
Change in fair value of digital assets | 3,748 | (8,105) | ||||
Litigation expense accrual | 15,250 | |||||
Income tax expense | 3,860 | 3,999 | 8,809 | 8,240 | ||
Consolidated Segment Adjusted EBITDA | 202,004 | 269,366 | 462,558 | 561,313 | ||
JC Resources acquisition | $ (72,250) | |||||
Oil and gas acquisitions total | $ 2,900 | $ 1,100 | $ 4,700 | 3,900 | ||
JC Resources | ||||||
Reconciliation of consolidated Segment Adjusted EBITDA to net income | ||||||
JC Resources acquisition | $ 72,300 |