Alliance Holdings GP (AHGP) 10-Q 6 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 06, 2015
Document and Entity Information
Entity Registrant Name	Alliance Holdings GP, L.P.
Entity Central Index Key	1,344,980
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Units Outstanding		59,863,000
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015		Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 47,522		$ 28,274
Trade receivables	191,505		184,187
Other receivables	635		1,025
Due from affiliates	22,850		7,107
Inventories	88,272		83,155
Advance royalties	9,440		9,416
Prepaid expenses and other assets	21,968		31,362
Total current assets	382,192		344,526
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost	2,927,115		2,815,620
Less accumulated depreciation, depletion and amortization	(1,270,593)		(1,150,414)
Total property, plant and equipment, net	1,656,522		1,665,206
OTHER ASSETS:
Advance royalties	24,901		15,895
Due from affiliate	11,166		11,047
Equity investments in affiliates	221,768		224,611
Other long-term assets	37,490		27,470
Total other assets	295,325		279,023
TOTAL ASSETS	2,334,039	[1]	2,288,755
CURRENT LIABILITIES:
Accounts payable	72,877		86,277
Due to affiliates	381		370
Accrued taxes other than income taxes	23,130		19,461
Accrued payroll and related expenses	38,207		57,656
Accrued interest	317		318
Workers' compensation and pneumoconiosis benefits	8,873		8,868
Current capital lease obligations	1,316		1,305
Other current liabilities	15,437		17,109
Current maturities, long-term debt	68,750		230,000
Total current liabilities	229,288		421,364
LONG-TERM LIABILITIES:
Long-term debt, excluding current maturities	788,000		591,250
Pneumoconiosis benefits	57,235		55,278
Accrued pension benefit	39,377		40,105
Workers' compensation	47,906		49,797
Asset retirement obligations	94,605		91,085
Long-term capital lease obligations	14,946		15,624
Other liabilities	7,173		5,978
Total long-term liabilities	1,049,242		849,117
Total liabilities	$ 1,278,530		$ 1,270,481
COMMITMENTS AND CONTINGENCIES
Alliance Holdings GP, L.P. ("AHGP") Partners' Capital:
Limited Partners - Common Unitholders 59,863,000 units outstanding	$ 595,753		$ 580,234
Accumulated other comprehensive loss	(14,806)		(15,456)
Total AHGP Partners' Capital	580,947		564,778
Noncontrolling interests	474,562		453,496
Total Partners' Capital	1,055,509		1,018,274
TOTAL LIABILITIES AND PARTNERS' CAPITAL	$ 2,334,039		$ 2,288,755
[1]	Total assets for the White Oak and Other and Corporate segments include investments in affiliate of $190.5 million and $31.3 million, respectively, at June 30, 2015 and $174.9 million and $1.6 million, respectively, at June 30, 2014.

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Jun. 30, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATED BALANCE SHEETS
Limited Partners, Common Unitholders units outstanding	59,863,000	59,863,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
SALES AND OPERATING REVENUES:
Coal sales		$ 567,288	$ 575,191	$ 1,085,027	$ 1,100,736
Transportation revenues		7,780	5,810	14,928	11,815
Other sales and operating revenues		29,551	17,463	64,964	27,847
Total revenues	[1]	604,619	598,464	1,164,919	1,140,398
EXPENSES:
Operating expenses (excluding depreciation, depletion and amortization)		375,065	352,893	709,427	675,135
Transportation expenses		7,780	5,810	14,928	11,815
Outside coal purchases		2	2	324	4
General and administrative		18,040	20,268	35,303	38,167
Depreciation, depletion and amortization		79,801	67,052	158,069	133,893
Total operating expenses		480,688	446,025	918,051	859,014
INCOME FROM OPERATIONS		123,931	152,439	246,868	281,384
Interest expense (net of interest capitalized for the three and six months ended June 30, 2015 and 2014 of $154, $61, $366 and $833, respectively)		(8,306)	(8,748)	(16,274)	(16,811)
Interest income		605	417	1,136	806
Equity in loss of affiliates, net		(22,142)	(7,373)	(31,828)	(13,614)
Other income		177	323	295	629
INCOME BEFORE INCOME TAXES		94,265	137,058	200,197	252,394
INCOME TAX EXPENSE		8		6
NET INCOME		94,257	137,058	200,191	252,394
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		(33,307)	(59,711)	(73,711)	(107,600)
NET INCOME ATTRIBUTABLE TO ALLIANCE HOLDINGS GP, L.P. ("NET INCOME OF AHGP")		$ 60,950	$ 77,347	$ 126,480	$ 144,794
BASIC AND DILUTED NET INCOME OF AHGP PER LIMITED PARTNER UNIT (in dollars per unit)		$ 1.02	$ 1.29	$ 2.11	$ 2.42
DISTRIBUTIONS PAID PER LIMITED PARTNER UNIT (in dollars per unit)		$ 0.9375	$ 0.8475	$ 1.8525	$ 1.675
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING - BASIC AND DILUTED (in units)		59,863,000	59,863,000	59,863,000	59,863,000
[1]	Revenues included in the Other and Corporate column are primarily attributable to the Matrix Group revenues, Mt. Vernon transloading revenues, Wildcat Insurance revenues and brokerage coal sales.

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Interest expense, interest capitalized	$ 154	$ 61	$ 366	$ 833

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
NET INCOME		$ 94,257	$ 137,058	$ 200,191	$ 252,394
OTHER COMPREHENSIVE INCOME /(LOSS):
Total recognized in accumulated other comprehensive income/(loss)		723	(101)	1,452	(139)
COMPREHENSIVE INCOME		94,980	136,957	201,643	252,255
Less: Comprehensive income attributable to noncontrolling interests		(33,694)	(59,653)	(74,513)	(107,513)
COMPREHENSIVE INCOME ATTRIBUTABLE TO AHGP		61,286	77,304	127,130	144,742
Pension Plan
OTHER COMPREHENSIVE INCOME /(LOSS):
Amortization of net actuarial (gain) loss	[1]	835	162	1,677	387
Total recognized in accumulated other comprehensive income/(loss)		835	162	1,677	387
Pneumoconiosis benefits
OTHER COMPREHENSIVE INCOME /(LOSS):
Amortization of net actuarial (gain) loss	[1]	(112)	(263)	(225)	(526)
Total recognized in accumulated other comprehensive income/(loss)		$ (112)	$ (263)	$ (225)	$ (526)
[1]	Amortization of net actuarial (gain)/loss is included in the computation of net periodic benefit cost (see Notes 10 and 12 for additional details).

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES	$ 337,728	$ 378,416
Property, plant and equipment:
Capital expenditures	(107,758)	(154,578)
Changes in accounts payable and accrued liabilities	(5,797)	2,608
Proceeds from sale of property, plant and equipment	243	19
Proceeds from insurance settlement for property, plant and equipment		4,512
Purchases of equity investments in affiliates	(30,757)	(60,000)
Payments for acquisitions of businesses, net of cash acquired (Note 4)	(28,078)
Payments to affiliate for acquisition and development of coal reserves		(1,401)
Advances/loans to affiliate	(7,300)
Other	1,807
Net cash used in investing activities	(177,640)	(208,840)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on term loan	(12,500)	(6,250)
Borrowings under revolving credit facilities	363,000	142,800
Payments under revolving credit facilities	(110,000)	(222,800)
Payment on long-term debt	(205,000)
Payments on capital lease obligations	(667)	(734)
Contribution to consolidated company from affiliate noncontrolling interest	1,147
Net settlement of employee withholding taxes on vesting of ARLP Long-Term Incentive Plan	(2,719)	(2,991)
Distributions paid by consolidated partnership to noncontrolling interests	(57,883)	(53,085)
Distributions paid to Partners	(110,897)	(100,271)
Other	(5,321)
Net cash used in financing activities	(140,840)	(243,331)
NET CHANGE IN CASH AND CASH EQUIVALENTS	19,248	(73,755)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	28,274	98,375
CASH AND CASH EQUIVALENTS AT END OF PERIOD	47,522	24,620
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	15,972	17,184
NON-CASH INVESTING AND FINANCING ACTIVITY:
Accounts payable for purchase of property, plant and equipment	9,857	20,532
Market value of ARLP common units issued under ARLP's Long-Term Incentive and Directors Deferred Compensation Plans before minimum statutory tax withholding requirements	7,389	8,417
Acquisition of business:
Fair value of assets assumed	39,843
Cash paid	(28,078)
Fair value of liabilities assumed	$ 11,765
Disposition of property, plant and equipment:
Net change in assets		846
Book value of liabilities transferred		(5,246)
Gain recognized		$ (4,400)

ORGANIZATION AND PRESENTATION

ORGANIZATION AND PRESENTATION	6 Months Ended
	Jun. 30, 2015
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 “AHGP” mean Alliance Holdings GP, L.P., individually as the parent company, and not on a consolidated basis.  References to “AHGP Partnership” mean the business and operations of Alliance Holdings GP, L.P., the parent company, as well as its consolidated subsidiaries, which include Alliance Resource Management GP, LLC and Alliance Resource Partners, L.P. and its consolidated subsidiaries.  References to “AGP” mean Alliance GP, LLC, the general partner of Alliance Holdings GP, L.P., also referred to as our general partner.  References to “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, the managing general partner of Alliance Resource Partners, L.P.  References to “SGP” mean Alliance Resource GP, LLC, the special general partner of Alliance Resource Partners, L.P.  References to “Intermediate Partnership” mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P.  References to “Alliance Coal” mean Alliance Coal, LLC, the holding company for the substantial majority of the operations of Alliance Resource Operating Partners, L.P. Organization and Formation We are a Delaware limited partnership listed on the NASDAQ Global Select Market under the ticker symbol “AHGP.” We own directly and indirectly 100% of the members’ interest in MGP, ARLP’s managing general partner. The ARLP Partnership is a diversified producer and marketer of coal to major United States (“U.S.”) utilities and industrial users. ARLP conducts substantially all of its business through its wholly-owned subsidiary, the Intermediate Partnership. ARLP and the Intermediate Partnership were formed in May 1999, to acquire upon completion of ARLP’s initial public offering on August 19, 1999, certain coal production and marketing assets of Alliance Resource Holdings, Inc. (“ARH”), a Delaware corporation. We and ARH, through its wholly-owned subsidiary, SGP, maintain general partner interests in ARLP and the Intermediate Partnership. ARH is owned by Joseph W. Craft III, the Chairman, President and Chief Executive Officer of AGP as well as the President and Chief Executive Officer and a Director of MGP, and Kathleen S. Craft. SGP, a Delaware limited liability company, is owned by ARH and holds a 0.01% general partner interest in each of ARLP and the Intermediate Partnership. We are owned 100% by limited partners. Our general partner, AGP, has a non-economic interest in us and is owned by Mr. Craft. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts and operations of the AHGP Partnership and present our financial position as of June 30, 2015 and December 31, 2014, the results of our operations and comprehensive income for the three and six months ended June 30, 2015 and 2014 and the cash flows for the six months ended June 30, 2015 and 2014. All of our intercompany transactions and accounts have been eliminated. Net income attributable to Alliance Holdings GP, L.P. from within our accompanying condensed consolidated financial statements will be described as “Net Income of AHGP.” Since we own MGP, our condensed consolidated financial statements reflect the consolidated results of the ARLP Partnership. The earnings of the ARLP Partnership allocated to its limited partners’ interests not owned by us and allocated to SGP’s general partner interest in ARLP are reflected as net income attributable to noncontrolling interest on our condensed consolidated statement of income and as noncontrolling interest on our condensed consolidated balance sheets. Our consolidated financial statements do not differ materially from those of the ARLP Partnership. The differences between our financial statements and those of the ARLP Partnership are primarily attributable to (a) amounts reported as noncontrolling interests and (b) additional general and administrative costs and taxes attributable to us. The additional general and administrative costs principally consist of costs incurred by us as a result of being a publicly traded partnership, amounts billed by, and reimbursed to, Alliance Coal under an administrative services agreement and amounts billed by, and reimbursed to, AGP under our partnership agreement. These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these financial statements reflect all adjustments (which include only 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 for a full year. 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 should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2014. On June 16, 2014, the ARLP Partnership completed a two-for-one split of its common units, whereby holders of record as of May 30, 2014 received a one unit distribution on each unit outstanding on that date. The unit split resulted in the issuance of approximately 37.0 million ARLP common units. Accordingly, AHGP received an additional 15,544,169 ARLP common units, which brought its total ownership to 31,088,338 ARLP common units. All references to the number of ARLP units and distribution amounts included in this report have been adjusted to give effect for this unit split for all periods presented. Provisions of ARLP’s partnership agreement affecting ARLP’s incentive distribution rights that we own have been amended to reflect the unit split. Use of Estimates The preparation of AHGP Partnership’s condensed consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) of the U.S. 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.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	6 Months Ended
	Jun. 30, 2015
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS	2. NEW ACCOUNTING STANDARDS New Accounting Standard Issued and Adopted In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”). ASU 2014-08 changes the requirements for reporting discontinued operations in Accounting Standards Codification 205, Presentation of Financial Statements, by updating the criteria for determining which disposals can be presented as discontinued operations and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of discontinued operations. ASU 2014-08 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The adoption of ASU 2014-08 did not have a material impact on our condensed consolidated financial statements. New Accounting Standards Issued and Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 is a new revenue recognition standard that provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the new standard is an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is currently not permitted. In April 2015, the FASB issued a Proposed Accounting Standards Update that would defer the effective date of ASU 2014-09 by one year. We are currently evaluating the effect of adopting ASU 2014-09. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 provides guidance on management’s responsibility in evaluating whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter with early adoption permitted. We do not anticipate the adoption of ASU 2014-15 will have a material impact on our consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (“ASU 2015-02”). ASU 2015-02 changes the requirements and analysis required when determining the reporting entity’s need to consolidate an entity, including modifying the evaluation of limited partnership variable interest status, presumption that a general partner should consolidate a limited partnership and the consolidation criterion applied by a reporting entity involved with variable interest entities. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and shall be applied retrospectively to each period presented. Early adoption is permitted. We are currently evaluating the effect of adopting ASU 2015-02. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (“ASU 2015-03”). ASU 2015-03 changes the classification and presentation of debt issuance costs by requiring debt issuance costs to be reported as a direct deduction from the face amount of the debt liability rather than an asset. Amortization of the costs is reported as interest expense. The amendment does not affect the current guidance on the recognition and measurement of debt issuance costs. ASU 2015-03 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and shall be applied retrospectively to each period presented. We do not anticipate the adoption of ASU 2015-03 will have a material impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-06, Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions (“ASU 2015-06”). ASU 2015-06 specifies that for purposes of calculating historical earnings per unit under the two-class method, the earnings of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner. Earnings per unit of the limited partners would not change as a result of the dropdown transaction. ASU 2015-06 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and shall be applied retrospectively to each period presented. Early adoption is permitted. We are currently evaluating the effect of adopting ASU 2015-06.

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
CONTINGENCIES
CONTINGENCIES	3. CONTINGENCIES We are not engaged in any material litigation. The ARLP Partnership is involved in various lawsuits, claims and regulatory proceedings incidental to its business. The ARLP Partnership records 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, the ARLP Partnership believes the ultimate outcome of these outstanding lawsuits, claims and regulatory proceedings will not have a material adverse effect on its financial condition, results of operations or liquidity. However, if the results of these matters were different from management’s current opinion and in amounts greater than the ARLP Partnership’s accruals, then they could have a material adverse effect.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2015
ACQUISITIONS
ACQUISITIONS	4. ACQUISITIONS Patriot Coal Corporation On December 31, 2014 (the “Initial Closing Date”), the ARLP Partnership entered into asset purchase agreements with Patriot Coal Corporation (“Patriot”) regarding certain assets relating to two of Patriot’s western Kentucky mining operations, including certain coal sales agreements, unassigned coal reserves and underground mining equipment and infrastructure. Both of the mining operations – the former Dodge Hill and Highland mining operations – were closed by Patriot in late 2014 prior to entering into these agreements. Also on December 31, 2014, Patriot affiliates entered into agreements to sell other assets from Highland to a third party. Additional details of the transactions are discussed below. On the Initial Closing Date, the ARLP Partnership’s subsidiary, Alliance Coal acquired the rights to certain coal supply agreements from an affiliate of Patriot for approximately $21.0 million. Of the $21.0 million purchase price, $9.3 million was paid into escrow subject to obtaining certain consents. In February 2015, $7.5 million of the escrowed amount was released to Patriot for a consent received and $1.8 million was returned to Alliance Coal as a result of a consent not received, reducing the purchase price to $19.2 million. The acquired agreements provide for delivery of a total of approximately 5.1 million tons of coal from 2015 through 2017. On February 3, 2015 (the “Acquisition Date”), Alliance Coal and Alliance Resource Properties acquired from Patriot an estimated 84.1 million tons of proven and probable high-sulfur coal reserves in western Kentucky (substantially all of which was leased by Patriot), and substantially all of Dodge Hill’s assets related to its former coal mining operation in western Kentucky, which principally included underground mining equipment and an estimated 43.2 million tons of non-reserve coal deposits (substantially all of which was leased by Dodge Hill). In addition, the ARLP Partnership assumed Dodge Hill’s reclamation liabilities totaling $2.3 million. Also on the Acquisition Date, the Intermediate Partnership’s newly formed subsidiaries, UC Mining, LLC and UC Processing, LLC, acquired certain underground mining equipment and spare parts inventory from Patriot’s former Highland mining operation. The mining and reserve assets acquired from Patriot described above are located in Union and Henderson Counties, Kentucky. The mining equipment, spare parts and underground infrastructure that the ARLP Partnership acquired from Patriot has been and is continuing to be dispersed to the ARLP Partnership’s existing operations in the Illinois Basin region in accordance with their highest and best use. The ARLP Partnership’s purchase price of $19.2 million and $20.5 million paid on the Initial Closing Date and the Acquisition Date, respectively, described above was financed using existing cash on hand. In addition, the ARLP Partnership’s purchase price was increased by $8.3 million, comprising $2.1 million cash paid prior to the Acquisition Date related to the transaction and an agreement to pay approximately $6.2 million additional consideration as discussed below. As the ARLP Partnership has no intentions of operating the former Dodge Hill mining complex as a business and only acquired certain assets of Highland, it believes unaudited pro forma information of revenue and earnings is not meaningful as it relates to the acquisition of Patriot assets described above and furthermore not materially different than revenue and earnings as presented in our condensed consolidated statements of income. The primary ongoing benefit derived from the transaction relates to the coal supply agreements acquired, which would have permitted the sale of 0.8 million tons and 1.6 million tons at average pricing of $46.67 per ton sold during the three and six months ended June 30, 2014, respectively, based on the contract price and sales volumes, if the ARLP Partnership had owned the contracts during that period. In conjunction with the ARLP Partnership’s acquisitions on the Acquisition Date, WKY CoalPlay, LLC (“WKY CoalPlay”), a related party, acquired approximately 39.1 million tons of proven and probable high-sulfur owned coal reserves located in Henderson and Union Counties, Kentucky from Central States Coal Reserves of Kentucky, LLC (“Central States”), a subsidiary of Patriot, for $25.0 million and in turn leased those reserves to the ARLP Partnership. In February 2015, the ARLP Partnership paid $2.1 million to WKY CoalPlay for the initial annual minimum royalty payment (Note 9). The following table summarizes the estimated consideration transferred from the ARLP Partnership to Patriot and the preliminary fair value allocation of assets acquired and liabilities assumed as valued at the Acquisition Date, incorporating fair value adjustments made subsequent to the Acquisition Date (in thousands): Preliminary as of March 31, 2015 Adjustments Preliminary as of June 30, 2015 Estimated consideration transferred $ $ Recognized amounts of net tangible and intangible assets acquired and liabilities assumed: Inventories - Property, plant and equipment, including mineral rights and leased equipment Customer contracts, net - Other assets Asset retirement obligation - Other liabilities - Net tangible and intangible assets acquired $ $ Included in estimated consideration transferred above is an agreement to pay an additional $6.2 million related to the acquisition, of which $5.3 million was paid as of June 30, 2015. Additionally, a fair value adjustment of $3.1 million to increase liabilities and property, plant and equipment was recorded to reflect the impact of operating leases assumed in the acquisition. Other adjustments to the preliminary fair values resulted from additional information obtained about facts in existence on February 3, 2015. Intangible assets related to coal supply agreements, represented as “Customer contracts, net” in the table above are reflected in the “Prepaid expenses and other assets” and “Other long-term assets” line items in our condensed consolidated balance sheets. For the six months ended June 30, 2015, amortization expense for the acquired coal supply agreements of $6.1 million has been recognized based on the weighted-average term of the contracts on a per unit basis. The ARLP Partnership is currently in the process of evaluating the fair values of the assets acquired and liabilities assumed from Patriot. As a result, the purchase price allocations above are preliminary, pending completion of the final evaluation of all assets acquired and liabilities assumed. MAC In March 2006, White County Coal, and Alexander J. House entered into a limited liability company agreement to form Mid-America Carbonates, LLC (“MAC”). MAC was formed to engage in the development and operation of a rock dust mill and to manufacture and sell rock dust. White County Coal initially invested $1.0 million in exchange for a 50.0% equity interest in MAC. The ARLP Partnership’s equity investment in MAC was $1.6 million at December 31, 2014. Effective on January 1, 2015, the ARLP Partnership purchased the remaining 50.0% equity interest in MAC from Mr. House for $5.5 million cash paid at closing. In conjunction with the acquisition, goodwill of $4.2 million was recorded to the Other and Corporate segment (Note 13) that is included in “Other long-term assets” on our condensed consolidated balance sheets. Goodwill will be assessed for impairment at least annually as of November 30.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	5. FAIR VALUE MEASUREMENTS We apply the provisions of FASB ASC 820, Fair Value Measurement , which, among other things, defines fair value, requires disclosures about assets and liabilities carried at fair value and establishes a hierarchal disclosure framework based upon the quality of inputs used to measure fair value. Valuation techniques are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our own market assumptions. These two types of inputs create the following fair value hierarchy: · Level 1 – Quoted prices for identical instruments in active markets. · Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations whose inputs are observable or whose significant value drivers are observable. · Level 3 – Instruments whose significant value drivers are unobservable. The carrying amounts for cash equivalents, accounts receivable, accounts payable, due from affiliates and due to affiliates approximate fair value because of the short maturity of those instruments. At June 30, 2015 and December 31, 2014, the estimated fair value of the ARLP Partnership’s long-term debt, including current maturities, was approximately $865.5 million and $833.4 million, respectively, based on interest rates that it believes are currently available to it for issuance of debt with similar terms and remaining maturities (Note 6). The fair value of debt, which is based upon interest rates for similar instruments in active markets, is classified as a Level 2 measurement under the fair value hierarchy.

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2015
LONG-TERM DEBT
LONG-TERM DEBT	6. LONG-TERM DEBT Long-term debt consists of the following (in thousands): June 30, 2015 December 31, 2014 ARLP Revolving Credit facility $ $ ARLP Series A senior notes - ARLP Series B senior notes ARLP Term loan ARLP Securitization facility Less current maturities ) ) Total long-term debt $ $ The Intermediate Partnership has $145.0 million in ARLP Series B senior notes (“ARLP Series B Senior Notes”), a $700.0 million revolving credit facility (“ARLP Revolving Credit Facility”) and a $218.8 million term loan (“ARLP Term Loan” and collectively, with the ARLP Series B Senior Notes and the ARLP Revolving Credit Facility, the “ARLP Debt Arrangements”), which are guaranteed by all of the material direct and indirect subsidiaries of the Intermediate Partnership. The Intermediate Partnership also has a $100.0 million accounts receivable securitization facility (“ARLP Securitization Facility”). At June 30, 2015, current maturities include a portion of the ARLP Term Loan. On June 26, 2015 the outstanding balance of the ARLP Series A senior notes totaling $205.0 million was paid. The ARLP Debt Arrangements contain various covenants affecting the Intermediate Partnership and its subsidiaries restricting, among other things, the amount of distributions by the Intermediate Partnership, incurrence of additional indebtedness and liens, sale of assets, investments, mergers and consolidations and transactions with affiliates, in each case subject to various exceptions. The ARLP Debt Arrangements also require the Intermediate Partnership to remain in control of a certain amount of mineable coal reserves relative to its annual production. In addition, the ARLP Debt Arrangements require the Intermediate Partnership to maintain (a) debt to cash flow ratio of not more than 3.0 to 1.0 and (b) cash flow to interest expense ratio of not less than 3.0 to 1.0, in each case, during the four most recently ended fiscal quarters. The debt to cash flow ratio and cash flow to interest expense ratio were 1.09 to 1.0 and 23.9 to 1.0, respectively, for the trailing twelve months ended June 30, 2015. The ARLP Partnership was in compliance with the covenants of the ARLP Debt Arrangements as of June 30, 2015. At June 30, 2015, the ARLP Partnership had borrowings of $393.0 million and $5.4 million of letters of credit outstanding with $301.6 million available for borrowing under the ARLP Revolving Credit Facility. The ARLP Partnership utilizes the ARLP Revolving Credit Facility, as appropriate, for working capital requirements, capital expenditures and investments in affiliates, scheduled debt payments and distribution payments. The ARLP Partnership incurs an annual commitment fee of 0.25% on the undrawn portion of the ARLP Revolving Credit Facility. On December 5, 2014, certain direct and indirect wholly owned subsidiaries of the Intermediate Partnership entered into the ARLP Securitization Facility providing additional liquidity and funding. Under the ARLP Securitization Facility, certain subsidiaries sell trade receivables on an ongoing basis to the Intermediate Partnership, which then sells the trade receivables to AROP Funding, LLC (“AROP Funding”), a wholly owned bankruptcy-remote special purpose subsidiary of the Intermediate Partnership, which in turn borrows on a revolving basis up to $100.0 million secured by the trade receivables. After the sale, Alliance Coal, as servicer of the assets, collects the receivables on behalf of AROP Funding. The ARLP Securitization Facility bears interest based on a Eurodollar Rate. The ARLP Securitization Facility has an initial term of 364 days; however, the ARLP Partnership has the contractual ability and the intent to extend the term for an additional 364 days. At June 30, 2015, the ARLP Partnership had $100.0 million outstanding under the ARLP Securitization Facility. Debt issuance costs were immaterial for this transaction.

NONCONTROLLING INTERESTS

NONCONTROLLING INTERESTS	6 Months Ended
	Jun. 30, 2015
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS	7. NONCONTROLLING INTERESTS As required by FASB ASC 810, our noncontrolling ownership interest in consolidated subsidiaries is presented in the condensed consolidated balance sheet within partners’ capital as a separate component from the limited partners’ equity. In addition, consolidated net income includes earnings attributable to both the limited partners’ and the noncontrolling interests. The noncontrolling interests balance is comprised of non-affiliate and affiliate ownership interests in the net assets of the ARLP Partnership that we consolidate (Note 1) and an affiliate ownership interest in Cavalier Minerals JV, LLC (“Cavalier Minerals”). The following table summarizes the components of noncontrolling interests recorded in Partners’ Capital for the periods indicated (in thousands): June 30, December 31, 2015 2014 Noncontrolling interests reflected in Partners’ Capital: Affiliate (SGP) $ ) $ ) Non-Affiliates (ARLP’s non-affiliate limited partners) Affiliate (Cavalier Minerals) Accumulated other comprehensive loss attributable to noncontrolling interests ) ) Total noncontrolling interests $ $ The noncontrolling interest designated as Affiliate (SGP) represents SGP’s 0.01% general partner interest in ARLP and 0.01% general partner interest in the Intermediate Partnership. The noncontrolling interest designated as Non-Affiliates represents the limited partners’ interest in ARLP controlled through the common unit ownership, excluding the 31,088,338 common units of ARLP held by us. The total obligation associated with ARLP’s Long-Term Incentive Plan (“ARLP LTIP”), MGP Amended and Restated Deferred Compensation Plan for Directors (“MGP Deferred Compensation Plan”) and the Supplemental Executive Retirement Plan (“SERP”) are also included in the Non-Affiliates component of noncontrolling interest (Note 11). On November 10, 2014 (the “Cavalier Formation Date”), the ARLP Partnership’s wholly owned subsidiary, Alliance Minerals, LLC (“Alliance Minerals”), and Bluegrass Minerals Management, LLC (“Bluegrass Minerals”) entered into a limited liability company agreement (the “Cavalier Agreement”) to form Cavalier Minerals. Cavalier Minerals was formed to indirectly acquire oil and gas mineral interests through its noncontrolling ownership interest in AllDale Minerals L.P. (“AllDale Minerals”). Alliance Minerals and Bluegrass Minerals committed funding of $48.0 million and $2.0 million, respectively, to Cavalier Minerals. Alliance Minerals’ contributions through December 31, 2014 to Cavalier Minerals totaled $11.5 million. During the three and six months ended June 30, 2015, Alliance Minerals contributed $11.2 million and $19.2 million, respectively, bringing the ARLP Partnership’s total investment in Cavalier Minerals to $30.7 million at June 30, 2015. The ARLP Partnership had a remaining commitment to Cavalier Minerals of $17.3 million at June 30, 2015, which it expects to fund over the next year. On July 1, 2015, the ARLP Partnership funded an additional $8.4 million of this commitment. The ARLP Partnership expects to fund the remaining commitment utilizing existing cash balances, future cash flows from operations, borrowings under credit and securitization facilities and cash provided from the issuance of debt or equity. Bluegrass Minerals, which is owned and controlled by an officer of ARH and is Cavalier Minerals’ managing member, contributed $1.6 million as of June 30, 2015 and has a remaining commitment of $0.4 million. Cavalier Minerals has committed to provide funding of $49.0 million to AllDale Minerals. Cavalier Minerals has and will continue to provide funding to AllDale Minerals using contributions from Alliance Minerals and Bluegrass Minerals (Note 8). Cavalier Minerals also reimburses Bluegrass Minerals for certain insignificant general and administrative costs incurred on behalf of Cavalier Minerals. In accordance with the Cavalier Agreement, Bluegrass Minerals is entitled to receive an incentive distribution from Cavalier Minerals equal to 25.0% of all distributions (including in liquidation) after return of members’ capital reduced by certain distributions received by Bluegrass Minerals or its owner from AllDale Minerals Management, LLC (“AllDale Minerals Management”) (Note 8). Alliance Minerals’ ownership interest in Cavalier Minerals at June 30, 2015 was 96.0%. The remainder of the equity ownership is held by Bluegrass Minerals and is represented above as noncontrolling interest designated as Affiliate (Cavalier Minerals). As of June 30, 2015, Cavalier Minerals had not made any distributions to its owners. The ARLP Partnership has consolidated Cavalier Minerals’ financial results in accordance with FASB ASC 810, Consolidation . Based on the guidance in FASB ASC 810, the ARLP Partnership concluded that Cavalier Minerals is a variable interest entity (“VIE”) and it is the primary beneficiary because the ARLP Partnership’s consent is required for significant activities of Cavalier Minerals and due to Bluegrass Minerals’ relationship to the ARLP Partnership as described above. Bluegrass Minerals equity ownership of Cavalier Minerals is accounted for as noncontrolling ownership interest in our condensed consolidated balance sheets. In addition, earnings attributable to Bluegrass Minerals are recognized as noncontrolling ownership interest in our condensed consolidated statements of income. The following table summarizes net income attributable to each component of the noncontrolling interests for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income attributable to noncontrolling interest: Affiliate (SGP) $ $ $ $ Non-Affiliates (ARLP’s non-affiliate limited partners) Affiliates (Cavalier Minerals) ) – ) – $ $ $ $ The following table summarizes cash distributions paid by ARLP to each component of the noncontrolling interests for the periods indicated (in thousands): Six Months Ended June 30, 2015 2014 Distributions paid to noncontrolling interests: Affiliate (SGP) (1) $ $ Non-Affiliates (ARLP’s non-affiliate limited partners) (1) $ $ (1) Distributions paid to noncontrolling interests, in the table above, represent ARLP’s quarterly distributions in accordance with the ARLP partnership agreement. The Affiliate (SGP) component of noncontrolling interests represents SGP’s cumulative investment basis in the net assets of the ARLP Partnership. After the consummation of the various transactions associated with the ARLP Partnership’s formation and initial public offering in 1999 (which included the contribution of net assets by SGP to the ARLP Partnership, the retention by SGP of debt borrowings assumed by ARLP and a distribution by ARLP to SGP), SGP’s investment basis in ARLP totaled $(303.9) million. SGP’s investment basis as of June 30, 2015 and December 31, 2014 also reflects the cumulative amount of nominal ARLP income allocations and distributions to SGP and nominal contributions by SGP to ARLP and the Intermediate Partnership to maintain its general partner interests. The following tables present the change in Partners’ Capital for the six months ended June 30, 2015 and 2014 (in thousands): Alliance Holdings GP, L.P. Limited Partners’ Capital Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest Total Partners’ Capital Balance at January 1, 2015 $ $ ) $ $ Net income - Other comprehensive income - Settlement of directors deferred compensation ) - - ) Vesting of ARLP Long-Term Incentive Plan - - ) ) Common unit-based compensation - Distributions on ARLP common unit-based compensation - - ) ) Contributions to consolidated company from affiliate noncontrolling interest - - Distributions to AHGP Partners ) - - ) Distributions paid by consolidated partnership to noncontrolling interest - - ) ) Balance at June 30, 2015 $ $ ) $ $ Alliance Holdings GP, L.P. Limited Partners’ Capital Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest Total Partners’ Capital Balance at January 1, 2014 $ $ ) $ $ Net income - Other comprehensive loss - ) ) ) Settlement of directors deferred compensation ) - - ) Vesting of ARLP Long-Term Incentive Plan - - ) ) Common unit-based compensation - Distributions on ARLP common unit-based compensation - - ) ) Distributions to AHGP Partners ) - - ) Distributions paid by consolidated partnership to noncontrolling interest - - ) ) Balance at June 30, 2014 $ $ ) $ $

EQUITY INVESTMENTS

EQUITY INVESTMENTS	6 Months Ended
	Jun. 30, 2015
EQUITY INVESTMENTS
EQUITY INVESTMENTS	8. EQUITY INVESTMENTS White Oak On September 22, 2011 (the “Transaction Date”), the ARLP Partnership entered into a series of transactions with White Oak Resources LLC (“White Oak”) and related entities to support development of a longwall mining operation. The initial longwall system commenced operation in late October 2014. The transactions with White Oak initiated on the Transaction Date (“Initial Agreements”) featured several components, including an equity investment in White Oak (represented by “Series A Units” containing certain distribution and liquidation preferences), the acquisition and lease-back of certain coal reserves and surface rights and a construction loan. The ARLP Partnership’s initial investment funding to White Oak at the Transaction Date, consummated utilizing existing cash on hand, was $69.5 million and it funded White Oak with an additional $330.8 million between the Transaction Date and June 30, 2015 under the Initial Agreements. At June 30, 2015, the ARLP Partnership’s only remaining funding commitment to White Oak under the Initial Agreements was $25.2 million of the $140.0 million commitment for reserve acquisition and leaseback transactions. Regarding funding of any additional commitments, see Note 14. On the Transaction Date, the ARLP Partnership also entered into a coal handling and preparation agreement, pursuant to which the ARLP Partnership constructed and is operating a preparation plant and other surface facilities. The following information discusses each component of these transactions in further detail. Hamilton County, Illinois Reserve Acquisition On the Transaction Date, the ARLP Partnership’s subsidiary, Alliance WOR Properties, LLC (“WOR Properties”), acquired from White Oak the rights to approximately 204.9 million tons of proven and probable high-sulfur coal reserves, of which 105.2 million tons have been developed for mining by White Oak, and certain surface properties and rights in Hamilton County, Illinois (the “Reserve Acquisition”), which is adjacent to White County, Illinois, where the White County Coal, LLC’s Pattiki mine is located. The asset purchase price of $33.8 million cash paid at closing was allocated to owned and leased coal rights. Between the Transaction Date and December 31, 2012, WOR Properties provided $51.6 million to White Oak for development of the acquired coal reserves, fulfilling its initial commitment for further development funding. During the years ended December 31, 2013 and 2014, WOR Properties acquired from White Oak, for $29.4 million cash paid at various closings, an additional 104.7 million tons of reserves. Of the additional tons acquired in 2014 and 2013, 53.4 million tons have been developed for mining by White Oak. No reserve purchases from White Oak were made during the six months ended June 30, 2015. At June 30, 2015, WOR Properties had provided $114.8 million to acquire a total of 309.6 million tons of coal reserves and fund the development of the acquired reserves. WOR Properties had a remaining commitment of $25.2 million for additional coal reserve acquisitions. Regarding funding of any additional commitments, see Note 14. In conjunction with the Reserve Acquisition and the additional reserve acquisitions discussed above, WOR Properties entered into leases with White Oak, which provide White Oak the rights to develop and mine the acquired reserves. The leases require, in consideration of the lease-back of the coal reserves and the funding of development of those coal reserves, White Oak to pay WOR Properties earned royalties and, during the period beginning January 1, 2015 and ending December 31, 2034, fully recoupable minimum royalty totaling $2.1 million per month. The lease terms are through December 31, 2034, subject to certain renewal options for White Oak. During the three and six months ended June 30, 2015, the ARLP Partnership received $4.2 million and $8.3 million, respectively, in minimum royalty payments from White Oak, against which earned royalties are credited. Unearned minimum royalty payments from White Oak of $0.2 million and $2.0 million are reflected in the “Other current liabilities” and “Other liabilities” line items, respectively, in our condensed consolidated balance sheets. During the three and six months ended June 30, 2015, $5.7 million and $10.1 million, respectively, of earned royalties from White Oak was recorded in the “Other sales and operating revenues” line item in our condensed consolidated statements of income. Equity Investment – Series A Units Concurrent with the Reserve Acquisition, the ARLP Partnership’s subsidiary, Alliance WOR Processing, LLC (“WOR Processing”), made an initial equity investment of $35.7 million in White Oak to purchase Series A Units representing ownership in White Oak. WOR Processing purchased $229.0 million of additional Series A Units between the Transaction Date and December 31, 2014. During the six months ended June 30, 2015, WOR Processing purchased $10.3 million of additional Series A Units, reaching WOR Processing’s maximum equity investment commitment of $275.0 million in Series A Units. Additional equity investments in Series A Units of $10.3 million were made by another White Oak owner during the six months ended June 30, 2015, bringing the total purchases of Series A Units not acquired by WOR Processing as of June 30, 2015 to $50.0 million. WOR Processing’s ownership and member’s voting interest in White Oak at June 30, 2015 were 40.0% based upon outstanding voting units. The remainder of the equity ownership in White Oak, represented by Series A and Series B Units (“Remaining Equity”), was held by other investors and members of White Oak management. See Note 14 regarding WOR Processing acquiring the Remaining Equity on July 31, 2015. The ARLP Partnership continually reviews all rights provided to WOR Processing as well as the ARLP Partnership by various agreements with White Oak and concluded as of June 30, 2015 that all such rights were protective or participating in nature and did not provide WOR Processing or the ARLP Partnership the ability to unilaterally direct any of the primary activities of White Oak that most significantly impact its economic performance. As such, WOR Processing’s interest in White Oak is recognized as an equity investment in affiliate in our condensed consolidated balance sheets. As of June 30, 2015, WOR Processing had invested $275.0 million in Series A Units of White Oak equity, which represented the maximum exposure to loss as a result of the equity investment in White Oak exclusive of capitalized interest. White Oak has made no equity distributions to the ARLP Partnership. WOR Processing’s equity in income or losses of affiliates are recorded under the hypothetical liquidation at book value (“HLBV”) method of accounting due to the preferences to which WOR Processing is entitled with respect to distributions. For the three and six months ended June 30, 2015 and 2014, the ARLP Partnership was allocated losses of $22.0 million, $7.5 million, $31.4 million and $13.8 million, respectively, due primarily to losses incurred by White Oak. Allocated losses from White Oak for the six months ended June 30, 2015 were reduced by, and are reflected net of, $2.6 million, due to the impact of purchases of Series A Units during the period by another White Oak owner. There were no additional Series A Unit purchases during the three months ended June 30, 2015. Series A Unit purchases impact the future preferred distributions allocable to each owner and the ongoing allocation of income and losses for GAAP purposes under the HLBV method. Services Agreement Simultaneous with the closing of the Reserve Acquisition, WOR Processing entered into a Coal Handling and Preparation Agreement with White Oak pursuant to which WOR Processing committed to construct and operate a coal preparation plant and related facilities and a rail loop and loadout facility to service the White Oak longwall Mine No. 1. WOR Processing earned fees of $13.1 million, $4.1 million, $27.0 million and $7.8 million for the three and six months ended June 30, 2015 and 2014, respectively, from White Oak for surface facility services. Surface facility fees earned from White Oak are included in the other sales and operating revenues line item within our condensed consolidated statements of income. In addition, the Intermediate Partnership loaned $10.5 million to White Oak for the construction of various assets on the surface property, including a bathhouse, office and warehouse (“Construction Loan”). The Construction Loan has a term of 20 years. White Oak began making repayments in January 2015 and made $0.4 million and $0.9 million in principal and interest payments during the three and six months ended June 30, 2015, respectively. April 2015 Agreements On April 20, 2015, the ARLP Partnership entered into various agreements with White Oak to purchase processed coal (“Coal Purchase Agreement”) from the White Oak Mine No. 1 and assist in certain marketing and transportation needs. The ARLP Partnership paid White Oak approximately $15.0 million for processed coal to be delivered between January 1, 2016 and June 30, 2017, of which $7.0 million and $8.0 million are reflected in the “Prepaid expenses and other assets” and “Other long-term assets” line items, respectively, in our condensed consolidated balance sheets and included in “Cash flows provided by operating activities” in our condensed consolidated statements of cash flow. The ARLP Partnership also agreed to be White Oak’s exclusive representative for marketing White Oak coal in the export markets and to procure certain transportation related services for export shipments (“Export Agreements”). Beginning in June 2015, White Oak is required to pay monthly minimums to the ARLP Partnership of $0.2 million for the export transportation services which are recoupable against a handling fee of $4.50 per ton shipped up to 125,000 tons per month for the transportation procurement. There were no shipments related to the Export Agreements for the three and six months ended June 30, 2015. Minimum payments under the Export Agreements have been deferred in conjunction with additional funding discussed below. Future activity related to the Coal Purchase Agreement and Export Agreements will be eliminated due to the consolidation of White Oak (see Note 14). Additional Funding On May 29, 2015 (“Additional Funding Date”), the ARLP Partnership agreed to loan White Oak $7.3 million (“Additional Funding Loan”) in connection with entering into a letter of intent regarding its acquisition of the Remaining Equity (see Note 14). White Oak borrowed the entire amount available under the Additional Funding Loan in June 2015, which is reflected in the “Due from affiliates” line item in our condensed consolidated balance sheets and described as “Advances/loans to affiliate” in our condensed consolidated statements of cash flow. The loan was terminated on July 31, 2015 in conjunction with the ARLP Partnership’s acquisition of the Remaining Equity (see Note 14). On the Additional Funding Date, the ARLP Partnership also agreed to temporarily defer all payments owed to it by White Oak under the Export Agreements, coal leases, Construction Loan and Coal Handling and Preparation Agreement, which total $0.2 million, $2.2 million, $0.2 million and $10.2 million, respectively, as of June 30, 2015. The deferred amounts are reflected in the “Due from affiliates” line item in our condensed consolidated balance sheets. Payments for July 2015 under these agreements have also been deferred. AllDale Minerals On the Cavalier Formation Date, Cavalier Minerals (Note 7) contributed $7.4 million in return for a limited partner interest in AllDale Minerals, an entity created to purchase oil and gas mineral interests in various geographic locations within producing basins in the continental U.S. Between the Cavalier Formation Date and December 31, 2014, Cavalier Minerals’ contributed $4.2 million to AllDale Minerals. During the three and six months ended June 30, 2015, Cavalier Minerals contributed $11.9 million and $20.5 million, respectively, bringing the total investment in AllDale Minerals to $32.1 million at June 30, 2015. Cavalier Minerals had a remaining commitment to AllDale Minerals of $16.9 million at June 30, 2015, which it expects to fund over the next year. On July 1, 2015, Cavalier Minerals funded an additional $8.4 million of this commitment. The ARLP Partnership continually reviews all rights provided to Cavalier Minerals and the ARLP Partnership by various agreements and continues to conclude all such rights do not provide Cavalier Minerals or the ARLP Partnership the ability to unilaterally direct any of the activities of AllDale Minerals that most significantly impact its economic performance. As such, Cavalier Minerals’ ownership interest in the income or loss of AllDale Minerals is accounted for as equity income or loss in our condensed consolidated statements of income. Equity income or loss is recorded based on AllDale Minerals’ distribution structure. Cavalier Minerals’ limited partner interest in AllDale Minerals was 71.7% at June 30, 2015. The remainder of the equity ownership is held by other limited partners and AllDale Minerals Management. For the three and six months ended June 30, 2015, the ARLP Partnership has been allocated losses of $0.2 million and $0.5 million, respectively, from AllDale Minerals.

WKY COALPLAY

WKY COALPLAY	6 Months Ended
	Jun. 30, 2015
WKY COALPLAY
WKY COALPLAY	9. WKY COALPLAY On November 17, 2014, SGP Land, LLC (“SGP Land”), a wholly-owned subsidiary of SGP, and two limited liability companies owned by irrevocable trusts established by the ARLP Partnership’s President and Chief Executive Officer (“Craft Companies”) entered into a limited liability company agreement to form WKY CoalPlay. WKY CoalPlay was formed, in part, to purchase and lease coal reserves. WKY CoalPlay is managed by an entity controlled by an officer of ARH who is also a director of ARH II, the indirect parent of SGP, an employee of SGP Land and a trustee of the irrevocable trusts owning the Craft Companies. In February 2015, WKY CoalPlay acquired approximately 39.1 million tons of proven and probable high-sulfur owned coal reserves located in Henderson and Union Counties, Kentucky from Central States for $25.0 million and in turn leased those reserves to the ARLP Partnership. The lease has an initial term of 20 years and provides for earned royalty payments to WKY CoalPlay of 4.0% of the coal sales price and annual minimum royalty payments of $2.1 million. All annual minimum royalty payments are recoupable against earned royalty payments. An option was also granted to the ARLP Partnership to acquire the leased reserves at any time during a three-year period beginning in February 2018 for a purchase price that would provide WKY CoalPlay a 7.0% internal rate of return on its investment in these reserves taking into account payments previously made under the lease. The ARLP Partnership paid WKY CoalPlay $2.1 million in February 2015 for the initial annual minimum royalty payment. As of June 30, 2015, the ARLP Partnership had $10.8 million of advanced royalties with WKY CoalPlay, which is reflected in the long-term “Advance royalties” line item in our condensed consolidated balance sheets. Based on the guidance in FASB ASC 810, the ARLP Partnership concluded that WKY CoalPlay is a VIE because exercise of the option noted above (as well as two other options granted to the ARLP Partnership by WKY CoalPlay in December 2014) is not within the control of the equity holders and, if it occurs, could potentially limit the expected residual return to the owners of WKY CoalPlay. The ARLP Partnership does not have any economic or governance rights related to WKY CoalPlay and the options that provide the ARLP Partnership with a variable interest in WKY CoalPlay’s reserve assets do not give it any rights that constitute power to direct the primary activities that most significantly impact WKY CoalPlay’s economic performance. SGP Land has the sole ability to replace the manager of WKY CoalPlay at its discretion and therefore has power to direct the activities of WKY CoalPlay. Consequently, the ARLP Partnership concluded that SGP Land is the primary beneficiary of WKY CoalPlay.

WORKERS' COMPENSATION AND PNEUM

WORKERS' COMPENSATION AND PNEUMOCONIOSIS	6 Months Ended
	Jun. 30, 2015
WORKERS' COMPENSATION AND PNEUMOCONIOSIS
WORKERS' COMPENSATION AND PNEUMOCONIOSIS	10. 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 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Beginning balance $ $ $ $ Accruals increase Payments ) ) ) ) Interest accretion Valuation gain (1) ) ) ) ) Ending balance $ $ $ $ (1) The liability for the estimated present value of current workers’ compensation benefits is based on the ARLP Partnership’s actuarial estimates. The ARLP Partnership’s actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claim development patterns, mortality, medical costs and interest rates. The ARLP Partnership conducted a mid-year review of its actuarial assumptions which resulted in a valuation gain in 2015 primarily attributable to favorable changes in claims development and an increase in the discount rate used to calculate the estimated present value of future obligations from 3.41% at December 31, 2014 to 3.71% at June 30, 2015. The ARLP Partnership’s mid-year 2014 actuarial review also resulted in a valuation gain primarily attributable to favorable changes in claims development, offset partially by a decrease in the utilized discount rate from 4.11% at December 31, 2013 to 3.67% at June 30, 2014. Certain of the ARLP Partnership’s 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 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Amortization of net actuarial gain (1) ) ) ) ) Net periodic benefit cost $ $ $ $ (1) Amortization of net actuarial gain is included in the operating expenses line item within our condensed consolidated statements of income.

COMPENSATION PLANS

COMPENSATION PLANS	6 Months Ended
	Jun. 30, 2015
COMPENSATION PLANS
COMPENSATION PLANS	11. COMPENSATION PLANS ARLP Partnership The ARLP Partnership has established the ARLP LTIP for certain employees and officers of MGP and its affiliates who perform services for the ARLP Partnership. The ARLP LTIP awards are grants of non-vested “phantom” or notional units, which upon satisfaction of vesting requirements, entitle the ARLP LTIP participant to receive ARLP common units. Annual grant levels and vesting provisions for designated participants are recommended by the President and Chief Executive Officer of the MGP, subject to review and approval of the compensation committee of the MGP board of directors (the “MGP Compensation Committee”). On January 26, 2015, the MGP Compensation Committee determined that the vesting requirements for the 2012 grants of 202,778 restricted units (which is net of 11,450 forfeitures) had been satisfied as of January 1, 2015. As a result of this vesting, on February 11, 2015, the ARLP Partnership issued 128,150 unrestricted common units to the ARLP LTIP participants. The remaining units were settled in cash to satisfy the tax withholding obligations for the ARLP LTIP participants. On January 26, 2015, the MGP Compensation Committee authorized additional grants of up to 314,019 restricted units, of which 303,165 were granted during the six months ended June 30, 2015 and will vest on January 1, 2018, subject to satisfaction of certain financial tests. The fair value of these 2015 grants is equal to the intrinsic value at the date of grant, which was $37.18 per unit. ARLP LTIP expense was $2.9 million and $2.5 million for the three months ended June 30, 2015 and 2014, respectively, and $5.5 million and $4.6 million for the six months ended June 30, 2015 and 2014, respectively. After consideration of the January 1, 2015 vesting and subsequent issuance of 128,150 common units, approximately 3.7 million units remain available under the ARLP LTIP for issuance in the future, assuming all grants issued in 2013, 2014 and 2015 currently outstanding are settled with ARLP common units, without reduction for tax withholding, and no future forfeitures occur. As of June 30, 2015, there was $17.9 million in total unrecognized compensation expense related to the non-vested ARLP LTIP grants that are expected to vest. That expense is expected to be recognized over a weighted-average period of 1.5 years. As of June 30, 2015, the intrinsic value of the non-vested ARLP LTIP grants was $23.5 million. As of June 30, 2015, the total obligation associated with the ARLP LTIP was $15.6 million and is included in the noncontrolling interests line item in our condensed consolidated balance sheets. As provided under the distribution equivalent rights provisions of the ARLP LTIP, all non-vested grants include contingent rights to receive quarterly cash distributions in an amount equal to the cash distributions ARLP makes to its unitholders during the vesting period. AHGP Partnership We have also adopted a Long-Term Incentive Plan (the “AHGP LTIP”) for employees, directors and consultants of our general partner and its affiliates, including the ARLP Partnership. Grants under the AHGP LTIP are to be made in AHGP restricted units, which are “phantom” units that entitle the grantee to receive either a common unit or equivalent amount of cash upon the vesting of the phantom units. The aggregate number of common units reserved for issuance under the AHGP LTIP is 5,215,000. There have been no grants under the AHGP LTIP as of June 30, 2015. SERP and Directors Deferred Compensation Plans The ARLP Partnership has the SERP to provide deferred compensation benefits for certain officers and key employees. All allocations made to participants under the SERP are made in the form of “phantom” ARLP units. The SERP is administered by the MGP Compensation Committee. Our directors participate in the AGP Amended and Restated Deferred Compensation Plan for Directors (“AGP Deferred Compensation Plan”), and the directors of MGP participate in the MGP Deferred Compensation Plan (collectively, the “Deferred Compensation Plans”). Pursuant to the Deferred Compensation Plans, for amounts deferred either automatically or at the election of the director, a notional account is established and credited with notional common units of ARLP or AHGP, as appropriate, which are described in the Deferred Compensation Plans as “phantom” units. For both the SERP and Deferred Compensation Plans, when quarterly cash distributions are made with respect to ARLP or AHGP common units, an amount equal to such quarterly distribution is credited to each participant’s notional account as additional phantom units. All grants of phantom units under the SERP and Deferred Compensation Plans vest immediately. For the six months ended June 30, 2015 and 2014, SERP and MGP Deferred Compensation Plan participant notional account balances were credited with a total of 14,020 and 10,806 phantom units, respectively, and the fair value of these phantom units was $34.58 per unit and $42.93 per unit, respectively, on a weighted-average basis. For the six months ended June 30, 2015 and 2014, AGP Deferred Compensation Plan participant notional account balances were credited with a total of 2,078 and 2,560 phantom units, respectively, and the fair value of these phantom units was $54.38 per unit and $60.56 per unit, respectively, on a weighted-average basis. Total SERP and Deferred Compensation Plans expense was approximately $0.3 million and $0.4 million for the three months ended June 30, 2015 and 2014, respectively, and $0.7 million for each of the six months ended June 30, 2015 and 2014. As of June 30, 2015, there were 401,288 total phantom units outstanding under the SERP and Deferred Compensation Plans and the total intrinsic value of the SERP and Deferred Compensation Plans phantom units was $10.3 million. As of June 30, 2015, the total obligation associated with the SERP and MGP Deferred Compensation Plan was $13.0 million, which was included in the noncontrolling interests line item in our condensed consolidated balance sheets. The total obligation associated with the AGP Deferred Compensation Plan was $1.0 million, which was included in the partners’ capital-limited partners line item in our condensed consolidated balance sheets. On February 23, 2015, we provided 3,167 AHGP common units to an AGP director under the AGP Deferred Compensation Plan.

COMPONENTS OF PENSION PLAN NET

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS	6 Months Ended
	Jun. 30, 2015
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS	12. COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS Eligible employees at certain of the ARLP Partnership’s mining operations participate in a defined benefit plan (the “Pension Plan”) sponsored by the ARLP Partnership. The benefit formula for the Pension Plan is a fixed dollar unit based on years of service. Components of the net periodic benefit cost for each of the periods presented are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) Amortization of net loss (1) Net periodic benefit cost $ $ $ $ (1) Amortization of net actuarial loss is included in the operating expenses line item within our condensed consolidated statements of income. We previously disclosed in our financial statements for the year ended December 31, 2014 that the ARLP Partnership expected to contribute $3.1 million to the Pension Plan in 2015. During the six months ended June 30, 2015, the ARLP Partnership made a contribution payment of $0.6 million to the Pension Plan for the 2014 plan year and $0.7 million for the 2015 plan year. On July 15, 2015, the ARLP Partnership made a contribution payment of $0.7 million for the 2015 plan year.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2015
SEGMENT INFORMATION
SEGMENT INFORMATION	13. SEGMENT INFORMATION The ARLP Partnership operates in the eastern U.S. as a producer and marketer of coal to major utilities and industrial users. We aggregate multiple operating segments into four reportable segments: the Illinois Basin, Appalachia, White Oak and Other and Corporate. The first two reportable segments correspond to major coal producing regions in the eastern U.S. Similar economic characteristics for the operating segments within each of these two reportable segments generally include coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues. The White Oak reportable segment includes the ARLP Partnership’s activities associated with the White Oak Mine No. 1, which commenced initial longwall operation in late October 2014. The Illinois Basin reportable segment is comprised of multiple operating segments, including Webster County Coal, LLC’s Dotiki mining complex, Gibson County Coal, LLC’s mining complex, which includes the Gibson North mine and Gibson South mine, Hopkins County Coal, LLC’s Elk Creek mine and the Fies property, White County Coal, LLC’s Pattiki mining complex, Warrior Coal, LLC’s mining complex, Sebree Mining, LLC’s mining complex, which includes the Onton mine, and River View Coal, LLC’s mining complex. In April 2014, production began at the Gibson South mine. The Elk Creek mine is currently expected to cease production in early 2016. The Appalachia reportable segment is comprised of multiple operating segments, including the Mettiki mining complex, the Tunnel Ridge, LLC mining complex, the MC Mining, LLC mining complex and the Penn Ridge Coal, LLC (“Penn Ridge”) property. The Mettiki mining complex includes Mettiki Coal (WV), LLC’s Mountain View mine and Mettiki Coal, LLC’s preparation plant. The ARLP Partnership is in the process of permitting the Penn Ridge property for future mine development. The White Oak reportable segment is comprised of two operating segments, WOR Processing and WOR Properties. WOR Processing includes both the surface operations at White Oak and the equity investment in White Oak. WOR Properties owns coal reserves acquired from White Oak under lease-back arrangements (Note 8). On July 31, 2015, WOR Processing acquired all of the Remaining Equity in White Oak (Note 14). We anticipate realignment of our segment presentation in future filings to include White Oak with the Illinois Basin reportable segment. The Other and Corporate segment includes the ARLP Partnership and AHGP’s marketing and administrative expenses, Alliance Service, Inc. (“ASI”) and its subsidiary, Matrix Design Group, LLC (“Matrix Design”), Alliance Design Group, LLC (“Alliance Design”) (collectively, Matrix Design and Alliance Design are referred to as the “Matrix Group”), ASI’s ownership of aircraft, the Mt. Vernon Transfer Terminal, LLC (“Mt. Vernon”) dock activities, coal brokerage activity, MAC (Note 4), certain activities of Alliance Resource Properties, the Pontiki Coal, LLC mining complex, which sold most of its assets in May 2014, Wildcat Insurance, LLC (“Wildcat Insurance”), Alliance Minerals, and its affiliate, Cavalier Minerals (Note 7), which holds an equity investment in AllDale Minerals (Note 8), and AROP Funding (Note 6). Reportable segment results as of and for the three and six months ended June 30, 2015 and 2014 are presented below. Illinois Basin Appalachia White Oak Other and Corporate Elimination (1) Consolidated (in thousands) Reportable segment results for the three months ended June 30, 2015 were as follows: Total revenues (2) $ $ $ $ $ ) $ Segment Adjusted EBITDA Expense (3) ) Segment Adjusted EBITDA (4)(5) ) ) Capital expenditures (7) ) - Reportable segment results for the three months ended June 30, 2014 were as follows: Total revenues (2) $ $ $ $ $ ) $ Segment Adjusted EBITDA Expense (3) ) Segment Adjusted EBITDA (4)(5) ) - Capital expenditures (7) - Reportable segment results as of and for the six months ended June 30, 2015 were as follows: Total revenues (2) $ $ $ $ $ ) $ Segment Adjusted EBITDA Expense (3) ) Segment Adjusted EBITDA (4)(5) ) ) Total assets (6) ) Capital expenditures (7) ) - Reportable segment results as of and for the six months ended June 30, 2014 were as follows: Total revenues (2) $ $ $ $ $ ) $ Segment Adjusted EBITDA Expense (3) ) Segment Adjusted EBITDA (4)(5) ) - Total assets (6) ) Capital expenditures (7) - (1) The elimination column represents the elimination of intercompany transactions and is primarily comprised of sales from the Matrix Group to the ARLP Partnership’s mining operations, coal sales and purchases between operations within different segments, sales of receivables to AROP Funding and insurance premiums paid to Wildcat Insurance. (2) Revenues included in the Other and Corporate column are primarily attributable to the Matrix Group revenues, Mt. Vernon transloading revenues, Wildcat Insurance revenues and brokerage coal sales. (3) Segment Adjusted EBITDA Expense includes operating expenses, outside coal purchases and other income. Transportation expenses are excluded as these expenses are passed through to the ARLP Partnership’s customers and consequently it does not realize any gain or loss on transportation revenues. We review Segment Adjusted EBITDA Expense per ton for cost trends. The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization) (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Segment Adjusted EBITDA Expense $ $ $ $ Outside coal purchases ) ) ) ) Other income Operating expenses (excluding depreciation, depletion and amortization) $ $ $ $ (4) Segment Adjusted EBITDA is defined as net income (prior to the allocation of noncontrolling interest) before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses. Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to the ARLP Partnership’s revenues and operating expenses, which are primarily controlled by our segments. Consolidated Segment Adjusted EBITDA is reconciled to net income as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Consolidated Segment Adjusted EBITDA $ $ $ $ General and administrative ) ) ) ) Depreciation, depletion and amortization ) ) ) ) Interest expense, net ) ) ) ) Income tax expense ) - ) - Net income $ $ $ $ (5) Includes equity in income (loss) of affiliates for the three and six months ended June 30, 2015 of $(22.0) and $(31.4) million, respectively, included in the White Oak segment and $(0.2) million and $(0.5) million, respectively, included in the Other and Corporate segment. Includes equity in income (loss) of affiliates for the three and six months ended June 30, 2014 of $(7.5) million and $(13.8) million, respectively, included in the White Oak segment and $0.1 million, for each period, included in the Other and Corporate segment. (6) Total assets for the White Oak and Other and Corporate segments include investments in affiliate of $190.5 million and $31.3 million, respectively, at June 30, 2015 and $174.9 million and $1.6 million, respectively, at June 30, 2014. (7) Capital expenditures shown above include funding to White Oak of $1.4 million for the six months ended June 30, 2014 and no funding for the three months ended June 30, 2015 and 2014 or for the six months ended June 30, 2015 for the acquisition and development of coal reserves (Note 8), which is described as “Payments to affiliate for acquisition and development of coal reserves” in our condensed consolidated statements of cash flow. Capital expenditures shown above exclude the Patriot acquisition on February 3, 2015 and MAC acquisition on January 1, 2015 (Note 4).

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	14. SUBSEQUENT EVENTS On July 28, 2015, we declared a quarterly distribution for the quarter ended June 30, 2015, of $0.96 per unit on all common units outstanding, totaling approximately $57.5 million, payable on August 19, 2015 to all unitholders of record as of August 12, 2015. On July 28, 2015, the ARLP Partnership declared a quarterly distribution for the quarter ended June 30, 2015, of $0.675 per unit, on all common units outstanding, totaling approximately $87.5 million (which includes MGP’s incentive distributions), payable on August 14, 2015 to all unitholders of record as of August 7, 2015. On July 31, 2015 (the “White Oak Acquisition Date”), WOR Processing acquired the remaining Series A and B Units, representing 60.0% equity ownership, from White Oak Finance Inc. and other parties (the “Sellers”) for $50.0 million cash paid at closing and additional contingent consideration that may be due in the future. Contingent consideration will be payable to the Sellers if White Oak’s average coal sales prices exceed a specified amount. The ARLP Partnership is in the process of estimating the fair value of this contingent consideration as well as the fair value of certain preexisting relationships between the ARLP Partnership and White Oak, including, but not limited to, the due from affiliate receivables related to the Construction Loan, Additional Funding Loan, Coal Handling and Preparation Agreement, Coal Purchase Agreement, Export Agreements and coal leases (see Note 8). As of the White Oak Acquisition Date, the ARLP Partnership now owns 100.0% of the equity interests in White Oak and has assumed operating control of the mine. The acquisition of White Oak is consistent with the ARLP Partnership’s general business strategy and complements its current coal mining operations. The ARLP Partnership is in the process of estimating the fair values of the individual assets acquired and liabilities assumed on the White Oak Acquisition Date. Other than the events described above and in Notes 7, 8 and 13, there were no other subsequent events.

ORGANIZATION AND PRESENTATION (

ORGANIZATION AND PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2015
ORGANIZATION AND PRESENTATION
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements include the accounts and operations of the AHGP Partnership and present our financial position as of June 30, 2015 and December 31, 2014, the results of our operations and comprehensive income for the three and six months ended June 30, 2015 and 2014 and the cash flows for the six months ended June 30, 2015 and 2014. All of our intercompany transactions and accounts have been eliminated. Net income attributable to Alliance Holdings GP, L.P. from within our accompanying condensed consolidated financial statements will be described as “Net Income of AHGP.” Since we own MGP, our condensed consolidated financial statements reflect the consolidated results of the ARLP Partnership. The earnings of the ARLP Partnership allocated to its limited partners’ interests not owned by us and allocated to SGP’s general partner interest in ARLP are reflected as net income attributable to noncontrolling interest on our condensed consolidated statement of income and as noncontrolling interest on our condensed consolidated balance sheets. Our consolidated financial statements do not differ materially from those of the ARLP Partnership. The differences between our financial statements and those of the ARLP Partnership are primarily attributable to (a) amounts reported as noncontrolling interests and (b) additional general and administrative costs and taxes attributable to us. The additional general and administrative costs principally consist of costs incurred by us as a result of being a publicly traded partnership, amounts billed by, and reimbursed to, Alliance Coal under an administrative services agreement and amounts billed by, and reimbursed to, AGP under our partnership agreement. These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these financial statements reflect all adjustments (which include only 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 for a full year. 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 should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2014. On June 16, 2014, the ARLP Partnership completed a two-for-one split of its common units, whereby holders of record as of May 30, 2014 received a one unit distribution on each unit outstanding on that date. The unit split resulted in the issuance of approximately 37.0 million ARLP common units. Accordingly, AHGP received an additional 15,544,169 ARLP common units, which brought its total ownership to 31,088,338 ARLP common units. All references to the number of ARLP units and distribution amounts included in this report have been adjusted to give effect for this unit split for all periods presented. Provisions of ARLP’s partnership agreement affecting ARLP’s incentive distribution rights that we own have been amended to reflect the unit split.
Use of Estimates	Use of Estimates The preparation of AHGP Partnership’s condensed consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) of the U.S. 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.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2015
Patriot Coal Corporation
Acquisitions
Summary of estimated consideration transferred and fair value allocation of assets acquired and liabilities assumed	Preliminary as of March 31, 2015 Adjustments Preliminary as of June 30, 2015 Estimated consideration transferred $ $ Recognized amounts of net tangible and intangible assets acquired and liabilities assumed: Inventories - Property, plant and equipment, including mineral rights and leased equipment Customer contracts, net - Other assets Asset retirement obligation - Other liabilities - Net tangible and intangible assets acquired $ $

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2015
LONG-TERM DEBT
Schedule of Long-Term Debt	Long-term debt consists of the following (in thousands): June 30, 2015 December 31, 2014 ARLP Revolving Credit facility $ $ ARLP Series A senior notes - ARLP Series B senior notes ARLP Term loan ARLP Securitization facility Less current maturities ) ) Total long-term debt $ $

NONCONTROLLING INTERESTS (Table

NONCONTROLLING INTERESTS (Tables)	6 Months Ended
	Jun. 30, 2015
NONCONTROLLING INTERESTS
Components of Noncontrolling Interests Recorded in Partners' Capital	The following table summarizes the components of noncontrolling interests recorded in Partners’ Capital for the periods indicated (in thousands): June 30, December 31, 2015 2014 Noncontrolling interests reflected in Partners’ Capital: Affiliate (SGP) $ ) $ ) Non-Affiliates (ARLP’s non-affiliate limited partners) Affiliate (Cavalier Minerals) Accumulated other comprehensive loss attributable to noncontrolling interests ) ) Total noncontrolling interests $ $
Summary of Net Income Attributable to Noncontrolling Interests	The following table summarizes net income attributable to each component of the noncontrolling interests for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income attributable to noncontrolling interest: Affiliate (SGP) $ $ $ $ Non-Affiliates (ARLP’s non-affiliate limited partners) Affiliates (Cavalier Minerals) ) – ) – $ $ $ $
Summary of Cash Distribution Paid by ARLP to Noncontrolling Interests	The following table summarizes cash distributions paid by ARLP to each component of the noncontrolling interests for the periods indicated (in thousands): Six Months Ended June 30, 2015 2014 Distributions paid to noncontrolling interests: Affiliate (SGP) (1) $ $ Non-Affiliates (ARLP’s non-affiliate limited partners) (1) $ $ (1) Distributions paid to noncontrolling interests, in the table above, represent ARLP’s quarterly distributions in accordance with the ARLP partnership agreement.
Summary of Changes in Partners' Capital	The following tables present the change in Partners’ Capital for the six months ended June 30, 2015 and 2014 (in thousands): Alliance Holdings GP, L.P. Limited Partners’ Capital Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest Total Partners’ Capital Balance at January 1, 2015 $ $ ) $ $ Net income - Other comprehensive income - Settlement of directors deferred compensation ) - - ) Vesting of ARLP Long-Term Incentive Plan - - ) ) Common unit-based compensation - Distributions on ARLP common unit-based compensation - - ) ) Contributions to consolidated company from affiliate noncontrolling interest - - Distributions to AHGP Partners ) - - ) Distributions paid by consolidated partnership to noncontrolling interest - - ) ) Balance at June 30, 2015 $ $ ) $ $ Alliance Holdings GP, L.P. Limited Partners’ Capital Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest Total Partners’ Capital Balance at January 1, 2014 $ $ ) $ $ Net income - Other comprehensive loss - ) ) ) Settlement of directors deferred compensation ) - - ) Vesting of ARLP Long-Term Incentive Plan - - ) ) Common unit-based compensation - Distributions on ARLP common unit-based compensation - - ) ) Distributions to AHGP Partners ) - - ) Distributions paid by consolidated partnership to noncontrolling interest - - ) ) Balance at June 30, 2014 $ $ ) $ $

WORKERS' COMPENSATION AND PNE26

WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables)	6 Months Ended
	Jun. 30, 2015
Accrued Workers Compensation And Pneumoconiosis Benefits
Reconciliation of changes in workers' compensation liability	The changes in the workers’ compensation liability (including current and long-term liability balances) for each of the periods presented were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Beginning balance $ $ $ $ Accruals increase Payments ) ) ) ) Interest accretion Valuation gain (1) ) ) ) ) Ending balance $ $ $ $ (1) The liability for the estimated present value of current workers’ compensation benefits is based on the ARLP Partnership’s actuarial estimates. The ARLP Partnership’s actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claim development patterns, mortality, medical costs and interest rates. The ARLP Partnership conducted a mid-year review of its actuarial assumptions which resulted in a valuation gain in 2015 primarily attributable to favorable changes in claims development and an increase in the discount rate used to calculate the estimated present value of future obligations from 3.41% at December 31, 2014 to 3.71% at June 30, 2015. The ARLP Partnership’s mid-year 2014 actuarial review also resulted in a valuation gain primarily attributable to favorable changes in claims development, offset partially by a decrease in the utilized discount rate from 4.11% at December 31, 2013 to 3.67% at June 30, 2014.
Pneumoconiosis benefits
Accrued Workers Compensation And Pneumoconiosis Benefits
Components of Net Periodic Benefit Cost	Components of the net periodic benefit cost for each of the periods presented are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Amortization of net actuarial gain (1) ) ) ) ) Net periodic benefit cost $ $ $ $ (1) Amortization of net actuarial gain is included in the operating expenses line item within our condensed consolidated statements of income.

COMPONENTS OF PENSION PLAN NE27

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Tables)	6 Months Ended
	Jun. 30, 2015
Pension Plan
Employee Benefit Plans
Components of Net Periodic Benefit Cost	Components of the net periodic benefit cost for each of the periods presented are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) Amortization of net loss (1) Net periodic benefit cost $ $ $ $ (1) Amortization of net actuarial loss is included in the operating expenses line item within our condensed consolidated statements of income.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2015
SEGMENT INFORMATION
Schedule of reportable segment results	Illinois Basin Appalachia White Oak Other and Corporate Elimination (1) Consolidated (in thousands) Reportable segment results for the three months ended June 30, 2015 were as follows: Total revenues (2) $ $ $ $ $ ) $ Segment Adjusted EBITDA Expense (3) ) Segment Adjusted EBITDA (4)(5) ) ) Capital expenditures (7) ) - Reportable segment results for the three months ended June 30, 2014 were as follows: Total revenues (2) $ $ $ $ $ ) $ Segment Adjusted EBITDA Expense (3) ) Segment Adjusted EBITDA (4)(5) ) - Capital expenditures (7) - Reportable segment results as of and for the six months ended June 30, 2015 were as follows: Total revenues (2) $ $ $ $ $ ) $ Segment Adjusted EBITDA Expense (3) ) Segment Adjusted EBITDA (4)(5) ) ) Total assets (6) ) Capital expenditures (7) ) - Reportable segment results as of and for the six months ended June 30, 2014 were as follows: Total revenues (2) $ $ $ $ $ ) $ Segment Adjusted EBITDA Expense (3) ) Segment Adjusted EBITDA (4)(5) ) - Total assets (6) ) Capital expenditures (7) - (1) The elimination column represents the elimination of intercompany transactions and is primarily comprised of sales from the Matrix Group to the ARLP Partnership’s mining operations, coal sales and purchases between operations within different segments, sales of receivables to AROP Funding and insurance premiums paid to Wildcat Insurance. (2) Revenues included in the Other and Corporate column are primarily attributable to the Matrix Group revenues, Mt. Vernon transloading revenues, Wildcat Insurance revenues and brokerage coal sales. (3) Segment Adjusted EBITDA Expense includes operating expenses, outside coal purchases and other income. Transportation expenses are excluded as these expenses are passed through to the ARLP Partnership’s customers and consequently it does not realize any gain or loss on transportation revenues. We review Segment Adjusted EBITDA Expense per ton for cost trends. The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization) (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Segment Adjusted EBITDA Expense $ $ $ $ Outside coal purchases ) ) ) ) Other income Operating expenses (excluding depreciation, depletion and amortization) $ $ $ $ (4) Segment Adjusted EBITDA is defined as net income (prior to the allocation of noncontrolling interest) before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses. Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to the ARLP Partnership’s revenues and operating expenses, which are primarily controlled by our segments. Consolidated Segment Adjusted EBITDA is reconciled to net income as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Consolidated Segment Adjusted EBITDA $ $ $ $ General and administrative ) ) ) ) Depreciation, depletion and amortization ) ) ) ) Interest expense, net ) ) ) ) Income tax expense ) - ) - Net income $ $ $ $ (5) Includes equity in income (loss) of affiliates for the three and six months ended June 30, 2015 of $(22.0) and $(31.4) million, respectively, included in the White Oak segment and $(0.2) million and $(0.5) million, respectively, included in the Other and Corporate segment. Includes equity in income (loss) of affiliates for the three and six months ended June 30, 2014 of $(7.5) million and $(13.8) million, respectively, included in the White Oak segment and $0.1 million, for each period, included in the Other and Corporate segment. (6) Total assets for the White Oak and Other and Corporate segments include investments in affiliate of $190.5 million and $31.3 million, respectively, at June 30, 2015 and $174.9 million and $1.6 million, respectively, at June 30, 2014. (7) Capital expenditures shown above include funding to White Oak of $1.4 million for the six months ended June 30, 2014 and no funding for the three months ended June 30, 2015 and 2014 or for the six months ended June 30, 2015 for the acquisition and development of coal reserves (Note 8), which is described as “Payments to affiliate for acquisition and development of coal reserves” in our condensed consolidated statements of cash flow. Capital expenditures shown above exclude the Patriot acquisition on February 3, 2015 and MAC acquisition on January 1, 2015 (Note 4).
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)	The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization) (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Segment Adjusted EBITDA Expense $ $ $ $ Outside coal purchases ) ) ) ) Other income Operating expenses (excluding depreciation, depletion and amortization) $ $ $ $
Reconciliation of consolidated Segment Adjusted EBITDA to net income	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Consolidated Segment Adjusted EBITDA $ $ $ $ General and administrative ) ) ) ) Depreciation, depletion and amortization ) ) ) ) Interest expense, net ) ) ) ) Income tax expense ) - ) - Net income $ $ $ $

ORGANIZATION AND PRESENTATION29

ORGANIZATION AND PRESENTATION (Details)	Jun. 16, 2014shares	Jun. 30, 2015shares
Ownership interests
Ownership percentage by limited partners		100.00%
ARLP
Ownership interests
Unit split ratio	2
Units issued due to split	37,000,000
Additional units issued to parent	15,544,169
Total units owned by parent	31,088,338	31,088,338
ARLP | SGP
Ownership interests
Ownership percentage by noncontrolling owners		0.01%
MGP
Ownership interests
Subsidiaries holding percentage		100.00%
Intermediate Partnership | SGP
Ownership interests
Ownership percentage by noncontrolling owners		0.01%

ACQUISITIONS (Details)

ACQUISITIONS (Details) $ in Thousands, T in Millions	Feb. 03, 2015USD ($)T	Dec. 31, 2014USD ($)T	Feb. 28, 2015USD ($)T	Feb. 02, 2015USD ($)	Jun. 30, 2014$ / TT	Jun. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014$ / TT
Acquisitions
Purchase price paid in cash							$ 28,078
WKY CoalPlay | Acquisition of coal reserves from a subsidiary of Patriot | Coal lease
Acquisitions
Coal reserves leased from related party (in tons) | T	39.1
Payments for royalties			$ 2,100
WKY CoalPlay | Acquisition of coal reserves from a subsidiary of Patriot
Acquisitions
Coal reserves, rights purchased (in tons) | T	39.1		39.1
Purchase price (in dollars)	$ 25,000		$ 25,000
Patriot Coal Corporation
Acquisitions
Purchase price paid in cash	$ 20,500			$ 2,100
Coal reserves (in tons) | T	84.1
Non-reserve coal deposits (in tons) | T	43.2
Increase to purchase price from prior cash paid and agreement for contingent consideration	$ 8,300
Pro forma coal sales under acquired supply agreements (in tons) | T					0.8			1.6
Pro forma average price for coal sales under acquired supply agreements (in dollars per ton) | $ / T					46.67			46.67
Estimated consideration transferred	47,998
Recognized amounts of net tangible and intangible assets acquired and liabilities assumed:
Inventories	3,255
Property, plant and equipment, including mineral rights and leased facilities	30,404
Customer contracts, net	19,193
Other assets	488
Asset retirement obligation	(2,255)
Other liabilities	(3,087)
Net tangible and intangible assets acquired	47,998
Acquisitions, additional information
Agreement for additional payment included in estimated consideration transferred	6,200
Portion of additional agreed consideration amount paid to date						$ 5,300
Patriot Coal Corporation | Preliminary as of March 31, 2015
Acquisitions
Estimated consideration transferred	47,514
Recognized amounts of net tangible and intangible assets acquired and liabilities assumed:
Inventories	3,255
Property, plant and equipment, including mineral rights and leased facilities	26,995
Customer contracts, net	19,193
Other assets	326
Asset retirement obligation	(2,255)
Net tangible and intangible assets acquired	47,514
Patriot Coal Corporation | Adjustments
Recognized amounts of net tangible and intangible assets acquired and liabilities assumed:
Property, plant and equipment, including mineral rights and leased facilities	3,409
Other assets	162
Other liabilities	$ (3,087)
Patriot Coal Corporation | Customer contracts
Acquisitions
Initial purchase price for coal supply agreements		$ 21,000
Amount paid into escrow		$ 9,300
Escrow deposit released			7,500
Escrow deposit returned			$ 1,800
Coal to be delivered under acquired supply agreements (in tons) | T		5.1
Estimated consideration transferred		$ 19,200
Acquisitions, additional information
Amortization expense for acquired coal supply agreements							$ 6,100

ACQUISITIONS (Details 2)

ACQUISITIONS (Details 2) - USD ($) $ in Thousands	Jan. 01, 2015	Mar. 31, 2006	Jun. 30, 2015	Dec. 31, 2014
Acquisitions
Cash paid at closing			$ 28,078
White County Coal | MAC
Acquisitions
Purchase of equity investment		$ 1,000
MAC
Acquisitions
Equity interest (as a percent)				50.00%
Balance of equity investment				$ 1,600
Remaining equity interest acquired (as a percent)	50.00%
Cash paid at closing	$ 5,500
Goodwill	$ 4,200

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
FAIR VALUE MEASUREMENTS
Fair value of long-term debt, including current maturities	$ 865.5	$ 833.4

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Long-Term Debt
Long-term debt including current and non-current	$ 856,750	$ 821,250
Less current maturities	(68,750)	(230,000)
Total long-term debt	788,000	591,250
ARLP Revolving credit facility
Long-Term Debt
Long-term debt including current and non-current	393,000	140,000
ARLP Series A Senior Notes
Long-Term Debt
Long-term debt including current and non-current		205,000
ARLP Series B Senior Notes
Long-Term Debt
Long-term debt including current and non-current	145,000	145,000
ARLP Term Loan
Long-Term Debt
Long-term debt including current and non-current	218,750	231,250
ARLP Securitization facility
Long-Term Debt
Long-term debt including current and non-current	$ 100,000	$ 100,000

LONG-TERM DEBT (Details 2)

LONG-TERM DEBT (Details 2) $ in Thousands	Jun. 26, 2015USD ($)	Jun. 30, 2015USD ($)
Long-Term Debt
Outstanding balance of senior notes paid		$ 205,000
ARLP Debt Arrangements
Long-Term Debt
ARLP debt arrangements requirements, period over which the ratios are required to be maintained		1 year
Actual debt to cash flow ratio for trailing twelve months		1.09
Actual cash flow to interest expense ratio for trailing twelve months		23.9
ARLP Debt Arrangements | Maximum
Long-Term Debt
ARLP debt arrangements requirements, debt to cash flow ratio		3
ARLP Debt Arrangements | Minimum
Long-Term Debt
ARLP debt arrangements requirements, cash flow to interest expense ratio		3
ARLP Revolving credit facility
Long-Term Debt
Revolving credit facility		$ 700,000
Letters of credit outstanding		5,400
Line of credit facility, available for borrowing		$ 301,600
Annual commitment fee percentage, undrawn portion		0.25%
Frequency of commitment fee on undrawn portion		annual
ARLP Securitization facility
Long-Term Debt
Revolving credit facility		$ 100,000
Initial term		364 days
Extended term		364 days
Line of credit facility outstanding amount		$ 100,000
ARLP Series A Senior Notes
Long-Term Debt
Outstanding balance of senior notes paid	$ 205,000

NONCONTROLLING INTERESTS (Detai

NONCONTROLLING INTERESTS (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 16, 2014	Dec. 31, 1999
Noncontrolling Interest
Noncontrolling interests	$ 474,562	$ 453,496
ARLP
Noncontrolling Interest
Units owned by parent	31,088,338		31,088,338
Accumulated Other Comprehensive Loss Attributable To Noncontrolling Interests
Noncontrolling Interest
Noncontrolling interests	$ (19,589)	(20,391)
SGP
Noncontrolling Interest
Noncontrolling interests	$ (303,794)	(303,788)		$ (303,900)
SGP | ARLP
Noncontrolling Interest
Ownership percentage by noncontrolling owners	0.01%
SGP | Intermediate Partnership
Noncontrolling Interest
Ownership percentage by noncontrolling owners	0.01%
Non-Affiliates (ARLP'S Non-Affiliate Limited Partners)
Noncontrolling Interest
Noncontrolling interests	$ 796,353	777,210
Affiliate (Cavalier Minerals)
Noncontrolling Interest
Noncontrolling interests	$ 1,592	$ 465

NONCONTROLLING INTERESTS (Det36

NONCONTROLLING INTERESTS (Details 2) - USD ($) $ in Millions	Jul. 01, 2015	Nov. 10, 2014	Dec. 31, 2014	Dec. 31, 2014	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2015
Affiliate (Cavalier Minerals)
Cavalier Agreement
Expected funding					$ 48	$ 48	$ 48
Expected funding by noncontrolling owners						2
Amount of funding provided			$ 11.5		11.2	19.2	30.7
Remaining equity investment commitment					17.3	17.3	17.3
Amount of funding from noncontrolling owners						1.6
Additional funding committed by noncontrolling owners					0.4	$ 0.4	0.4
Incentive distribution for noncontrolling owners (as a percent)						25.00%
Ownership interest in VIE (as a percent)						96.00%
Affiliate (Cavalier Minerals) | AllDale Minerals
Cavalier Agreement
Expected funding					49	$ 49	49
Amount of funding provided	$ 8.4	$ 7.4		$ 4.2	11.9	20.5	32.1
Remaining equity investment commitment					$ 16.9	$ 16.9	$ 16.9

NONCONTROLLING INTERESTS (Det37

NONCONTROLLING INTERESTS (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Noncontrolling Interest
Net income attributable to noncontrolling interest	$ 33,307	$ 59,711	$ 73,711	$ 107,600
SGP
Noncontrolling Interest
Net income attributable to noncontrolling interest	12	21	26	38
Non-Affiliates (ARLP'S Non-Affiliate Limited Partners)
Noncontrolling Interest
Net income attributable to noncontrolling interest	33,302	$ 59,690	73,705	$ 107,562
Affiliate (Cavalier Minerals)
Noncontrolling Interest
Net income attributable to noncontrolling interest	$ (7)		$ (20)

NONCONTROLLING INTERESTS (Det38

NONCONTROLLING INTERESTS (Details 4) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014
Noncontrolling Interest
Distributions paid by consolidated partnership to noncontrolling interests		$ 57,883	$ 53,085
SGP
Noncontrolling Interest
Distributions paid by consolidated partnership to noncontrolling interests	[1]	32	30
Non-Affiliates (ARLP'S Non-Affiliate Limited Partners)
Noncontrolling Interest
Distributions paid by consolidated partnership to noncontrolling interests	[1]	$ 57,851	$ 53,055
[1]	Distributions paid to noncontrolling interests, in the table above, represent ARLP’s quarterly distributions in accordance with the ARLP partnership agreement.

NONCONTROLLING INTERESTS (Det39

NONCONTROLLING INTERESTS (Details 5) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Increase (Decrease) in Partners' Capital
Balance			$ 1,018,274	$ 855,593
Net income	$ 94,257	$ 137,058	200,191	252,394
Other comprehensive income (loss)			1,452	(139)
Settlement of directors deferred compensation			(177)	(218)
Vesting of ARLP Long-Term Incentive Plan			(2,719)	(2,991)
Common unit-based compensation			6,121	5,445
Distributions on ARLP common unit-based compensation			(1,363)	(1,140)
Contributions to consolidated company from affiliate noncontrolling interest			1,147
Distributions to AHGP Partners			(110,897)	(100,271)
Distributions paid by consolidated partnership to noncontrolling interest			(56,520)	(51,945)
Balance	1,055,509	956,728	1,055,509	956,728
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Partners' Capital
Balance			(15,456)	(4,198)
Other comprehensive income (loss)			650	(52)
Balance	(14,806)	(4,250)	(14,806)	(4,250)
Noncontrolling Interest
Increase (Decrease) in Partners' Capital
Balance			453,496	359,721
Net income			73,711	107,600
Other comprehensive income (loss)			802	(87)
Vesting of ARLP Long-Term Incentive Plan			(2,719)	(2,991)
Common unit-based compensation			6,008	5,290
Distributions on ARLP common unit-based compensation			(1,363)	(1,140)
Contributions to consolidated company from affiliate noncontrolling interest			1,147
Distributions paid by consolidated partnership to noncontrolling interest			(56,520)	(51,945)
Balance	474,562	416,448	474,562	416,448
Limited Partners' Capital
Increase (Decrease) in Partners' Capital
Balance			580,234	500,070
Net income			126,480	144,794
Settlement of directors deferred compensation			(177)	(218)
Common unit-based compensation			113	155
Distributions to AHGP Partners			(110,897)	(100,271)
Balance	$ 595,753	$ 544,530	$ 595,753	$ 544,530

EQUITY INVESTMENTS (Details)

EQUITY INVESTMENTS (Details) $ in Thousands	Apr. 20, 2015USD ($)	Sep. 22, 2011USD ($)T	Jun. 30, 2015USD ($)T$ / T	Jun. 30, 2015USD ($)T$ / T	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)T$ / T	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)T	Dec. 31, 2013USD ($)T	Dec. 31, 2012USD ($)	Dec. 31, 2014USD ($)	Jun. 30, 2015USD ($)T$ / T	Jun. 30, 2015USD ($)T$ / T
Equity Investments
Payments to affiliate for acquisition and development of coal reserves							$ (1,401)
Additional funding loan provided						$ 7,300
White Oak
Equity Investments
Amount of funding provided		$ 69,500										$ 330,800
Purchase of equity investment		$ 35,700				$ 10,300					$ 229,000
Voting interest (as a percent)			40.00%	40.00%		40.00%						40.00%	40.00%
Equity method investment, net			$ 275,000	$ 275,000		$ 275,000						$ 275,000	$ 275,000
Distributions received from investee						0
Allocated losses				22,000	$ 7,500	31,400	13,800
Decrease in allocated losses from purchases of Series A Units by another owner				0		2,600
Additional funding loan provided			7,300
White Oak | Maximum
Equity Investments
Equity investment commitment			275,000	275,000		275,000						275,000	275,000
White Oak | Other interest holders
Equity Investments
Purchase of additional equity investments						10,300
Total purchases of equity interest to date			50,000	50,000		50,000						50,000	50,000
White Oak | Reserve Acquisition
Equity Investments
Expected funding			140,000	140,000		$ 140,000						140,000	$ 140,000
Coal reserves, rights purchased (in tons) | T		204,900,000				0		104,700,000	104,700,000				309,600,000
Payment for acquisition of coal reserves and other assets		$ 33,800						$ 29,400	$ 29,400
Payment for development of acquired coal reserves										$ 51,600
Payments to affiliate for acquisition and development of coal reserves													$ (114,800)
Commitment for additional coal reserve acquisitions			25,200	25,200		$ 25,200						25,200	25,200
Minimum monthly royalties receivable			2,100	2,100		2,100						2,100	2,100
Earned royalties				5,700		10,100
Deferred payments due from affiliate			2,200	2,200		2,200						2,200	2,200
White Oak | Reserve Acquisition | Royalties on lease-back of coal reserves
Equity Investments
Minimum royalty payments received				4,200		8,300
Unearned minimum royalty payments reflected in "Other current liabilities"			200	200		200						200	200
Unearned minimum royalty payments reflected in "Other liabilities"			$ 2,000	$ 2,000		$ 2,000						$ 2,000	$ 2,000
White Oak | Reserve Acquisition, rights purchased on Transaction Date
Equity Investments
Coal reserves developed or in development for future mining (in tons) | T			105,200,000	105,200,000		105,200,000						105,200,000	105,200,000
White Oak | Reserve Acquisition, rights purchased after Transaction Date
Equity Investments
Coal reserves developed or in development for future mining (in tons) | T			53,400,000	53,400,000		53,400,000						53,400,000	53,400,000
White Oak | Services Agreement
Equity Investments
Surface facility fees earned				$ 13,100	$ 4,100	$ 27,000	$ 7,800
Deferred payments due from affiliate			$ 10,200	10,200		$ 10,200						$ 10,200	$ 10,200
White Oak | Construction Loan
Equity Investments
Amount loaned for construction								$ 10,500			$ 10,500
Term of construction loan						20 years
Repayment received for principal and interest				400		$ 900
Deferred payments due from affiliate			200	200		200						200	200
White Oak | Coal Purchase Agreement
Equity Investments
Purchase of processed coal to be delivered	$ 15,000
Processed coal purchase included in "Prepaid expenses and other assets"			7,000	7,000		7,000						7,000	7,000
Processed coal purchase included in "Other long-term assets"			8,000	8,000		8,000						8,000	8,000
White Oak | Export Agreements
Equity Investments
Minimum monthly payments to be received for transportation services			$ 200	$ 200		$ 200						$ 200	$ 200
Handling fee for transportation procurement (in dollars per ton) | $ / T			4.50	4.50		4.50						4.50	4.50
Maximum monthly shipments subject to handling fee (in tons) | T			125,000	125,000		125,000						125,000	125,000
Deferred payments due from affiliate			$ 200	$ 200		$ 200						$ 200	$ 200

EQUITY INVESTMENTS (Details 2)

EQUITY INVESTMENTS (Details 2) - AllDale Minerals - USD ($) $ in Millions	Jul. 01, 2015	Nov. 10, 2014	Dec. 31, 2014	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2015
Equity Investments
Allocated losses				$ 0.2	$ 0.5
Affiliate (Cavalier Minerals)
Equity Investments
Amount of funding provided	$ 8.4	$ 7.4	$ 4.2	11.9	20.5	$ 32.1
Remaining equity investment commitment				$ 16.9	$ 16.9	$ 16.9
Ownership interest in equity method investee (as a percent)				71.70%	71.70%	71.70%

WKY COALPLAY (Details)

WKY COALPLAY (Details) $ in Thousands, T in Millions	Feb. 03, 2015USD ($)T	Feb. 28, 2015USD ($)T	Dec. 31, 2014USD ($)item	Jun. 30, 2015USD ($)
Related Party Transaction
Advance royalties			$ 15,895	$ 24,901
WKY CoalPlay | Acquisition of coal reserves from a subsidiary of Patriot
Related Party Transaction
Coal reserves, rights purchased (in tons) | T	39.1	39.1
Purchase price (in dollars)	$ 25,000	$ 25,000
WKY CoalPlay
Related Party Transaction
Advance royalties				$ 10,800
Number of options to acquire leased reserves granted during period | item			2
WKY CoalPlay | Coal lease | Acquisition of coal reserves from a subsidiary of Patriot
Related Party Transaction
Lease agreement term		20 years
Percentage of earned royalty on coal sale price		4.00%
Annual minimum royalties		$ 2,100
Term to acquire the leased reserves		3 years
Percentage of internal rate of return on purchase price, if leased reserves acquired		7.00%
Payments for royalties		$ 2,100

WORKERS' COMPENSATION AND PNE43

WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reconciliation of the changes in workers' compensation liability
Beginning balance						$ 58,198	$ 62,989	$ 57,557	$ 62,909
Accruals increase						3,500	5,281	6,167	7,464
Payments						(2,100)	(2,778)	(4,614)	(5,527)
Interest accretion						489	647	977	1,293
Valuation gain	[1]					(4,416)	(4,624)	(4,416)	(4,624)
Ending balance		$ 55,671	$ 57,557	$ 61,515	$ 62,909	$ 55,671	$ 61,515	$ 55,671	$ 61,515
Workers' compensation discount rate (as a percent)		3.71%	3.41%	3.67%	4.11%
[1]	The liability for the estimated present value of current workers′ compensation benefits is based on the ARLP Partnership’s actuarial estimates. The ARLP Partnership’s actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claim development patterns, mortality, medical costs and interest rates. The ARLP Partnership conducted a mid-year review of its actuarial assumptions which resulted in a valuation gain in 2015 primarily attributable to favorable changes in claims development and an increase in the discount rate used to calculate the estimated present value of future obligations from 3.41% at December 31, 2014 to 3.71% at June 30, 2015. The ARLP Partnership’s mid-year 2014 actuarial review also resulted in a valuation gain primarily attributable to favorable changes in claims development, offset partially by a decrease in the utilized discount rate from 4.11% at December 31, 2013 to 3.67% at June 30, 2014.

WORKERS' COMPENSATION AND PNE44

WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Details 2) - Pneumoconiosis benefits - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accrued Workers Compensation And Pneumoconiosis Benefits
Service cost		$ 732	$ 857	$ 1,464	$ 1,714
Interest cost		523	565	1,047	1,131
Amortization of net actuarial gain	[1]	(112)	(263)	(225)	(526)
Net periodic benefit cost		$ 1,143	$ 1,159	$ 2,286	$ 2,319
[1]	Amortization of net actuarial gain is included in the operating expenses line item within our condensed consolidated statements of income.

COMPENSATION PLANS (Details)

COMPENSATION PLANS (Details) - ARLP LTIP - USD ($) $ / shares in Units, $ in Millions	Feb. 11, 2015	Jan. 02, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Jan. 26, 2015
Compensation Plans
Common units issued upon vesting	128,150
Share based compensation expense			$ 2.9	$ 2.5	$ 5.5	$ 4.6
Units available for grant			3,700,000		3,700,000
Unrecognized compensation expense			$ 17.9		$ 17.9
Weighted-average period for recognition of expense					1 year 6 months
Total unit based obligation recorded			15.6		$ 15.6
Phantom Share Units (PSUs)
Compensation Plans
Additional grants authorized (in units)								314,019
Units granted					303,165
Fair value as intrinsic value at date of grant (in dollars per unit)					$ 37.18
Intrinsic value of outstanding grants			$ 23.5		$ 23.5
Phantom Share Units (PSUs) | 2012 Grants
Compensation Plans
Units for which vesting requirements were deemed satisfied		202,778
Forfeitures (in units)							11,450

COMPENSATION PLANS (Details 2)

COMPENSATION PLANS (Details 2) - USD ($) $ / shares in Units, $ in Millions	Feb. 23, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
AHGP LTIP
Compensation Plans
Units reserved for issuance		5,215,000		5,215,000
SERP and Deferred Compensation Plans
Compensation Plans
Share based compensation expense		$ 0.3	$ 0.4	$ 0.7	$ 0.7
SERP and Deferred Compensation Plans | Phantom Share Units (PSUs)
Compensation Plans
Units outstanding		401,288		401,288
Total intrinsic value		$ 10.3		$ 10.3
SERP And MGP Deferred Compensation Plan
Compensation Plans
Total unit based obligation recorded		13		$ 13
SERP And MGP Deferred Compensation Plan | Phantom Share Units (PSUs)
Compensation Plans
Units granted				14,020	10,806
Fair value (in dollars per unit)				$ 34.58	$ 42.93
AGP Deferred Compensation Plan
Compensation Plans
Total unit based obligation recorded		$ 1		$ 1
Common units issued	3,167
AGP Deferred Compensation Plan | Phantom Share Units (PSUs)
Compensation Plans
Units granted				2,078	2,560
Fair value (in dollars per unit)				$ 54.38	$ 60.56

COMPONENTS OF PENSION PLAN NE47

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Details) - USD ($) $ in Thousands		Jul. 15, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Pension Plan
Components of net periodic benefit cost:
Service cost			$ 619	$ 544	$ 1,237	$ 1,087
Interest cost			1,074	1,018	2,148	2,037
Expected return on plan assets			(1,394)	(1,337)	(2,795)	(2,738)
Amortization of net actuarial gain	[1]		835	162	1,677	387
Net periodic benefit cost			$ 1,134	$ 387	2,267	$ 773
Expected contribution for pension plan in 2015							$ 3,100
2014 plan year
Components of net periodic benefit cost:
Employer contribution					600
2015 plan year
Components of net periodic benefit cost:
Employer contribution		$ 700			$ 700
[1]	Amortization of net actuarial gain is included in the operating expenses line item within our condensed consolidated statements of income.

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Thousands		3 Months Ended				6 Months Ended
		Jun. 30, 2015USD ($)		Jun. 30, 2014USD ($)		Jun. 30, 2015USD ($)segment		Jun. 30, 2014USD ($)		Dec. 31, 2014USD ($)
Segment information
Number of reportable segments | segment						4
Number of reportable segments corresponding to major coal producing regions in the eastern U.S. | segment						2
Reportable segment results
Revenues	[1]	$ 604,619		$ 598,464		$ 1,164,919		$ 1,140,398
Segment Adjusted EBITDA Expense	[2]	374,890		352,572		709,456		674,510
Segment Adjusted EBITDA	[3],[4]	199,807		232,709		408,707		440,459
Total assets		2,334,039	[5]	2,140,979	[5]	2,334,039	[5]	2,140,979	[5]	$ 2,288,755
Capital expenditures	[6]	57,428		85,115		107,758		155,979
Additional information
Equity in income (loss) of affiliates, net		(22,142)		(7,373)		(31,828)		(13,614)
Investments in affiliate		221,768				$ 221,768				$ 224,611
Payments to affiliate for acquisition and development of coal reserves								1,401
White Oak
Segment information
Number of operating segments within the reportable segment | segment						2
Operating segments | Illinois Basin
Reportable segment results
Revenues	[1]	406,862		424,523		$ 780,216		821,025
Segment Adjusted EBITDA Expense	[2]	244,843		255,942		471,055		485,533
Segment Adjusted EBITDA	[3],[4]	157,248		165,859		299,967		329,508
Total assets	[5]	1,192,634		1,102,550		1,192,634		1,102,550
Capital expenditures	[6]	34,466		62,166		68,208		117,875
Operating segments | Appalachia
Reportable segment results
Revenues	[1]	167,165		164,096		323,413		301,280
Segment Adjusted EBITDA Expense	[2]	118,744		93,917		216,559		179,490
Segment Adjusted EBITDA	[3],[4]	45,547		67,089		101,380		115,959
Total assets	[5]	580,059		608,714		580,059		608,714
Capital expenditures	[6]	21,701		18,541		37,439		28,669
Operating segments | White Oak
Reportable segment results
Revenues	[1]	18,718		4,170		37,086		7,868
Segment Adjusted EBITDA Expense	[2]	3,726		1,625		7,378		3,016
Segment Adjusted EBITDA	[3],[4]	(6,989)		(4,915)		(1,670)		(8,912)
Total assets	[5]	397,395		365,380		397,395		365,380
Capital expenditures	[6]	(37)		220		(22)		2,179
Additional information
Equity in income (loss) of affiliates, net		(22,000)		(7,500)		(31,400)		(13,800)
Investments in affiliate		190,500		174,900		190,500		174,900
Payments to affiliate for acquisition and development of coal reserves		0		0		0		1,400
Operating segments | Other and Corporate
Reportable segment results
Revenues	[1]	51,590		8,090		106,598		15,728
Segment Adjusted EBITDA Expense	[2]	44,137		3,503		90,620		11,974
Segment Adjusted EBITDA	[3],[4]	7,158		4,676		15,269		3,904
Total assets	[5]	320,353		65,884		320,353		65,884
Capital expenditures	[6]	1,298		4,188		2,133		7,256
Additional information
Equity in income (loss) of affiliates, net		(200)		100		(500)		100
Investments in affiliate		31,300		1,600		31,300		1,600
Elimination
Reportable segment results
Revenues	[1],[7]	(39,716)		(2,415)		(82,394)		(5,503)
Segment Adjusted EBITDA Expense	[2],[7]	(36,560)		(2,415)		(76,156)		(5,503)
Segment Adjusted EBITDA	[3],[4],[7]	(3,157)				(6,239)
Total assets	[5],[7]	$ (156,402)		$ (1,549)		$ (156,402)		$ (1,549)
[1]	Revenues included in the Other and Corporate column are primarily attributable to the Matrix Group revenues, Mt. Vernon transloading revenues, Wildcat Insurance revenues and brokerage coal sales.
[2]	Segment Adjusted EBITDA Expense includes operating expenses, outside coal purchases and other income. Transportation expenses are excluded as these expenses are passed through to the ARLP Partnership’s customers and consequently it does not realize any gain or loss on transportation revenues. We review Segment Adjusted EBITDA Expense per ton for cost trends.
[3]	Includes equity in income (loss) of affiliates for the three and six months ended June 30, 2015 of $(22.0) and $(31.4) million, respectively, included in the White Oak segment and $(0.2) million and $(0.5) million, respectively, included in the Other and Corporate segment.Includes equity in income (loss) of affiliates for the three and six months ended June 30, 2014 of $(7.5) million and $(13.8) million, respectively, included in the White Oak segment and $0.1 million, for each period, included in the Other and Corporate segment.
[4]	Segment Adjusted EBITDA is defined as net income (prior to the allocation of noncontrolling interest) before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses. Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to the ARLP Partnership’s revenues and operating expenses, which are primarily controlled by our segments.
[5]	Total assets for the White Oak and Other and Corporate segments include investments in affiliate of $190.5 million and $31.3 million, respectively, at June 30, 2015 and $174.9 million and $1.6 million, respectively, at June 30, 2014.
[6]	Capital expenditures shown above include funding to White Oak of $1.4 million for the six months ended June 30, 2014 and no funding for the three months ended June 30, 2015 and 2014 or for the six months ended June 30, 2015 for the acquisition and development of coal reserves (Note 8), which is described as “Payments to affiliate for acquisition and development of coal reserves” in our condensed consolidated statements of cash flow. Capital expenditures shown above exclude the Patriot acquisition on February 3, 2015 and MAC acquisition on January 1, 2015 (Note 4).
[7]	The elimination column represents the elimination of intercompany transactions and is primarily comprised of sales from the Matrix Group to the ARLP Partnership’s mining operations, coal sales and purchases between operations within different segments, sales of receivables to AROP Funding and insurance premiums paid to Wildcat Insurance.

SEGMENT INFORMATION (Details 2)

SEGMENT INFORMATION (Details 2) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)
Segment Adjusted EBITDA Expense	[1]	$ 374,890	$ 352,572	$ 709,456	$ 674,510
Outside coal purchases		(2)	(2)	(324)	(4)
Other income		177	323	295	629
Operating expenses (excluding depreciation, depletion and amortization)		$ 375,065	$ 352,893	$ 709,427	$ 675,135
[1]	Segment Adjusted EBITDA Expense includes operating expenses, outside coal purchases and other income. Transportation expenses are excluded as these expenses are passed through to the ARLP Partnership’s customers and consequently it does not realize any gain or loss on transportation revenues. We review Segment Adjusted EBITDA Expense per ton for cost trends.

SEGMENT INFORMATION (Details 3)

SEGMENT INFORMATION (Details 3) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reconciliation of consolidated Segment Adjusted EBITDA to net income
Consolidated Segment Adjusted EBITDA	[1],[2]	$ 199,807	$ 232,709	$ 408,707	$ 440,459
General and administrative		(18,040)	(20,268)	(35,303)	(38,167)
Depreciation, depletion and amortization		(79,801)	(67,052)	(158,069)	(133,893)
Interest expense, net		(7,701)	(8,331)	(15,138)	(16,005)
Income tax expense		(8)		(6)
NET INCOME		$ 94,257	$ 137,058	$ 200,191	$ 252,394
[1]	Includes equity in income (loss) of affiliates for the three and six months ended June 30, 2015 of $(22.0) and $(31.4) million, respectively, included in the White Oak segment and $(0.2) million and $(0.5) million, respectively, included in the Other and Corporate segment.Includes equity in income (loss) of affiliates for the three and six months ended June 30, 2014 of $(7.5) million and $(13.8) million, respectively, included in the White Oak segment and $0.1 million, for each period, included in the Other and Corporate segment.
[2]	Segment Adjusted EBITDA is defined as net income (prior to the allocation of noncontrolling interest) before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses. Management therefore is able to focus solely on the evaluation of segment operating profitability as it relates to the ARLP Partnership’s revenues and operating expenses, which are primarily controlled by our segments.

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 31, 2015	Jul. 28, 2015	Jun. 30, 2015
Subsequent Event
Cash paid at closing			$ 28,078
Subsequent event
Subsequent Event
Distributions declared (in dollars per unit)		$ 0.96
Approximate distribution to be paid		$ 57,500
Subsequent event | ARLP
Subsequent Event
Distributions declared (in dollars per unit)		$ 0.675
Approximate distribution to be paid, including incentive distributions		$ 87,500
Subsequent event | White Oak
Subsequent Event
Remaining equity interest acquired (as a percent)	60.00%
Cash paid at closing	$ 50,000
Percentage of equity interests in the acquiree owned as of the Acquisition Date	100.00%