Alliance Holdings GP (AHGP) 10-Q 10 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 10, 2016
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	Mar. 31, 2016
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	2,016
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016		Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 35,765		$ 38,678
Trade receivables	119,662		122,875
Other receivables	848		696
Due from affiliates	34		38
Inventories, net	155,344		121,081
Advance royalties, net	6,770		6,820
Prepaid expenses and other assets	23,774		29,890
Total current assets	342,197		320,078
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost	3,065,155		3,044,260
Less accumulated depreciation, depletion and amortization	(1,309,334)		(1,243,985)
Total property, plant and equipment, net	1,755,821		1,800,275
OTHER ASSETS:
Advance royalties, net	32,666		21,295
Equity investments in affiliate	84,234		64,509
Goodwill	136,399		136,399
Other long-term assets	22,751		23,960
Total other assets	276,050		246,163
TOTAL ASSETS	2,374,068	[1]	2,366,516
CURRENT LIABILITIES:
Accounts payable	63,527		84,058
Due to affiliates	41		129
Accrued taxes other than income taxes	16,609		15,621
Accrued payroll and related expenses	33,459		37,031
Accrued interest	2,801		306
Workers' compensation and pneumoconiosis benefits	8,843		8,688
Current capital lease obligations	20,148		19,764
Other current liabilities	19,534		18,929
Current maturities, long-term debt, net	240,436		238,086
Total current liabilities	405,398		422,612
LONG-TERM LIABILITIES:
Long-term debt, excluding current maturities, net	644,736		579,420
Pneumoconiosis benefits	61,079		60,077
Accrued pension benefit	38,781		39,031
Workers' compensation	48,337		47,486
Asset retirement obligations	123,302		122,434
Long-term capital lease obligations	74,895		80,150
Other liabilities	21,684		21,174
Total long-term liabilities	1,012,814		949,772
Total liabilities	$ 1,418,212		$ 1,372,384
COMMITMENTS AND CONTINGENCIES
Alliance Holdings GP, L.P. ("AHGP") Partners' Capital:
Limited Partners - Common Unitholders 59,863,000 units outstanding	$ 540,601		$ 567,259
Accumulated other comprehensive loss	(14,785)		(14,875)
Total AHGP Partners' Capital	525,816		552,384
Noncontrolling interests	430,040		441,748
Total Partners' Capital	955,856		994,132
TOTAL LIABILITIES AND PARTNERS' CAPITAL	$ 2,374,068		$ 2,366,516
[1]	Total assets for Other and Corporate include investments in affiliate of $84.2 million at March 31, 2016. Total assets at March 31, 2015 for the Illinois Basin segment and Other and Corporate include investments in affiliates of $212.5 million and $19.5 million, respectively.

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Mar. 31, 2016	Dec. 31, 2015
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
		Mar. 31, 2016	Mar. 31, 2015
SALES AND OPERATING REVENUES:
Coal sales		$ 401,292	$ 517,739
Transportation revenues		6,558	7,148
Other sales and operating revenues		4,875	35,413
Total revenues	[1]	412,725	560,300
EXPENSES:
Operating expenses (excluding depreciation, depletion and amortization)		253,303	334,362
Transportation expenses		6,558	7,148
Outside coal purchases			322
General and administrative		17,553	17,263
Depreciation, depletion and amortization		80,883	78,268
Total operating expenses		358,297	437,363
INCOME FROM OPERATIONS		54,428	122,937
Interest expense (net of interest capitalized for the three months ended March 31, 2016 and 2015 of $227 and $212, respectively)		(7,615)	(7,968)
Interest income		4	531
Equity in loss of affiliates, net		(27)	(9,686)
Other income		91	118
INCOME BEFORE INCOME TAXES		46,881	105,932
INCOME TAX BENEFIT		(8)	(2)
NET INCOME		46,889	105,934
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		(16,047)	(40,404)
NET INCOME ATTRIBUTABLE TO ALLIANCE HOLDINGS GP, L.P. ("NET INCOME OF AHGP")		$ 30,842	$ 65,530
BASIC NET INCOME OF AHGP PER LIMITED PARTNER UNIT (in dollars per unit)		$ 0.52	$ 1.09
DILUTED NET INCOME OF AHGP PER LIMITED PARTNER UNIT (in dollars per unit)		0.52	1.09
DISTRIBUTIONS PAID PER LIMITED PARTNER UNIT (in dollars per unit)		$ 0.96	$ 0.915
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING - BASIC (in units)		59,863,000	59,863,000
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING - DILUTED (in units)		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, MAC revenues, Wildcat Insurance revenues and brokerage coal sales.

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Interest expense, interest capitalized	$ 227	$ 212

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Net income		$ 46,889	$ 105,934
OTHER COMPREHENSIVE INCOME /(LOSS):
Total recognized in accumulated other comprehensive income/(loss)		128	729
COMPREHENSIVE INCOME		47,017	106,663
Less: Comprehensive income attributable to noncontrolling interests		(16,085)	(40,819)
COMPREHENSIVE INCOME ATTRIBUTABLE TO AHGP		30,932	65,844
Pension Plan
OTHER COMPREHENSIVE INCOME /(LOSS):
Amortization of net actuarial loss (gain)	[1]	789	842
Total recognized in accumulated other comprehensive income/(loss)		789	842
Pneumoconiosis benefits
OTHER COMPREHENSIVE INCOME /(LOSS):
Amortization of net actuarial loss (gain)	[1]	(661)	(113)
Total recognized in accumulated other comprehensive income/(loss)		$ (661)	$ (113)
[1]	Amortization of net actuarial gain or 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	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES	$ 80,278	$ 161,059
Property, plant and equipment:
Capital expenditures	(31,733)	(50,330)
Changes in accounts payable and accrued liabilities	(6,247)	659
Proceeds from sale of property, plant and equipment	458	299
Purchases of equity investments in affiliates	(20,168)	(18,804)
Payments for acquisitions of businesses, net of cash acquired		(28,078)
Other	416	1,807
Net cash used in investing activities	(57,274)	(94,447)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under securitization facility	22,500
Payments under securitization facility	(13,900)
Payments on term loan	(6,250)	(6,250)
Borrowings under revolving credit facility	105,000	95,000
Payments under revolving credit facility	(40,000)	(65,000)
Payments on capital lease obligations	(4,871)	(343)
Contribution to consolidated company from affiliate noncontrolling interest	796	333
Net settlement of employee withholding taxes on vesting of ARLP Long-Term Incentive Plan	(1,336)	(2,719)
Distributions paid by consolidated partnership to noncontrolling interests	(30,388)	(28,688)
Distributions paid to Partners	(57,468)	(54,775)
Other		(2,141)
Net cash used in financing activities	(25,917)	(64,583)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(2,913)	2,029
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	38,678	28,274
CASH AND CASH EQUIVALENTS AT END OF PERIOD	35,765	30,303
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	4,996	2,137
NON-CASH INVESTING AND FINANCING ACTIVITY:
Accounts payable for purchase of property, plant and equipment	6,387	16,313
Market value of ARLP common units issued under ARLP's Long-Term Incentive and Directors Deferred Compensation Plans before minimum statutory tax withholding requirements	$ 3,642	7,389
Acquisition of business:
Fair value of assets assumed		37,881
Contingent consideration		(5,746)
Previously held equity-method investment		(1,609)
Cash paid, net of cash acquired		(28,078)
Fair value of liabilities assumed		$ 2,448

ORGANIZATION AND PRESENTATION

ORGANIZATION AND PRESENTATION	3 Months Ended
	Mar. 31, 2016
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, including 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 Resource Properties” mean Alliance Resource Properties, LLC, the land-holding company for the mining operations of Alliance Resource Operating Partners, L.P. · References to “Alliance Coal” mean Alliance Coal, LLC, the holding company for the mining operations of Alliance Resource Operating Partners, L.P. 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 our accounts and operations and those of MGP, ARLP (a variable interest entity of which AHGP is the primary beneficiary), ARLP’s consolidated Intermediate Partnership and the Intermediate Partnership’s operating subsidiaries and present the financial position as of March 31, 2016 and December 31, 2015 and the results of operations, comprehensive income and cash flows for the three months ended March 31, 2016 and 2015. ARLP and its consolidated subsidiaries represent virtually all the net assets and operations of AHGP. All intercompany transactions and accounts have been eliminated. See Note 8 – Variable Interest Entities for information regarding our consolidation of ARLP. 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 noncontrolling interest in our condensed consolidated statements of income and balance sheet. 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. 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.” These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the results for the periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2016. These condensed consolidated financial statements and notes are prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting and do not include all of the information normally included with financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) of the U.S. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. Use of Estimates The preparation of AHGP Partnership ’ s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in our condensed consolidated financial statements. Actual results could differ from those estimates. Goodwill Goodwill represents the excess of cost over the fair value of net assets of acquired businesses. Goodwill is not amortized, but instead is evaluated for impairment periodically. The ARLP Partnership evaluates goodwill for impairment annually on November 30 th , or more often if events or circumstances indicate that goodwill might be impaired. The reporting unit or units used to evaluate and measure goodwill for impairment are determined primarily from the manner in which the business is managed or operated. A reporting unit is an operating segment or a component that is one level below an operating segment. There were no impairments of goodwill during the three month period ended March 31, 2016. In future periods it is reasonably possible that a variety of circumstances could result in an impairment of goodwill.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	3 Months Ended
	Mar. 31, 2016
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS	2. NEW ACCOUNTING STANDARDS New Accounting Standard Issued and Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and is applied retrospectively to each period presented. The adoption of ASU 2015-03 resulted in immaterial changes to our condensed 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 may be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The adoption of ASU 2015-02 in January 2016 did not have a material impact on our condensed consolidated financial statements; however, it did require additional disclosures regarding our newly identified variable interest entities. New Accounting Standards Issued and Not Yet Adopted In March 2016, the FASB issued ASU 2016-09, Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies the accounting for several aspects of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. We are currently evaluating the effect of adopting ASU 2016-09. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 increases transparency and comparability among organizations by requiring lessees to record right-to-use assets and corresponding lease liabilities on the balance sheet and disclosing key information about lease arrangements. The new guidance will continue to classify leases as either finance or operating, with classification affecting the pattern of income recognition in the statement of income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the effect of adopting ASU 2016-02. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with the lower of cost or net realizable value test. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new standard will be applied prospectively and is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods, with early adoption permitted. We are currently evaluating the effect of adopting ASU 2015-11, but do not expect it to have a material impact on our consolidated financial statements. 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 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. The standard will be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. ASU 2014-09 was originally effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date (“ASU 2015-14”), which defers the effective date by one year while providing the option to early adopt the standard on the original effective date. The ARLP Partnership has developed an assessment team to determine the effect of adopting ASU 2014-09. The ARLP Partnership is still determining whether there will be any material impact on revenue recognition; however, we believe changes with respect to disclosures on revenue from contracts will be reflected in our consolidated financial statements. The ARLP Partnership’s assessment team will continue to work through the new guidance to finalize its evaluation later this year.

CONTINGENCIES

CONTINGENCIES	3 Months Ended
	Mar. 31, 2016
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 accruals for potential losses related to these matters when, in management’s opinion, such losses are probable and reasonably estimable. Based on known facts and circumstances, 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.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2016
INVENTORIES
INVENTORIES	4. INVENTORIES Inventories consist of the following : March 31, 2016 December 31, 2015 (in thousands) Coal $ $ Supplies (net of reserve for obsolescence of $3,706 and $3,841, respectively) Total inventory $ $ During the three months ended March 31, 2016, the ARLP Partnership recorded a lower of cost or market adjustment of $12.3 million to its coal inventories as a result of lower coal sale prices and higher cost per ton due to lower production at the Hamilton County Coal, LLC ( “ Hamilton ” ) mining complex as a result of customer deferrals and challenging market conditions.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2016
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	5. FAIR VALUE MEASUREMENTS The following table summarizes our recurring fair value measurements within the hierarchy: March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Long-term debt $ - $ $ - $ - $ $ - Contingent consideration - - - - Total $ - $ $ $ - $ $ The carrying amounts for cash equivalents, accounts receivable, accounts payable, due from affiliates and due to affiliates approximate fair value due to the short maturity of those instruments. The estimated fair value of the ARLP Partnership’s long-term debt, including current maturities, is based on interest rates that the ARLP Partnership believes are currently available to it in active markets for issuance of debt with similar terms and remaining maturities (See Note 6 – Long-Term Debt). The fair value of debt, which is based upon these interest rates, is classified as a Level 2 measurement under the fair value hierarchy. The estimated fair value of the ARLP Partnership’s contingent consideration arrangement is based on a probability-weighted discounted cash flow model. The assumptions used in the model include a risk-adjusted discount rate, forward coal sales price curves, cost of debt and probabilities of meeting certain threshold prices. The fair value measurement is based on significant inputs not observable in active markets and thus represents a Level 3 fair value measurement under the fair value hierarchy.

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2016
LONG-TERM DEBT
LONG-TERM DEBT	6. LONG-TERM DEBT Long-term debt consists of the following: Principal Unamortized Debt Issuance Costs March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 (in thousands) ARLP Revolving Credit facility $ $ $ $ ARLP Series B senior notes ARLP Term loan - - ARLP Securitization facility - - Less current maturities Total long-term debt $ $ $ $ The Intermediate Partnership has a $700.0 million revolving credit facility ( “ARLP Revolving Credit Facility ” ), $145.0 million in ARLP Series B senior notes ( “ARLP Series B Senior Notes ” ) and a $200.0 million term loan (“ARLP Term Loan” and collectively, with the ARLP Revolving Credit Facility and the ARLP Series B Senior Notes, the “ ARLP Debt Arrangements ” ), which are guaranteed by all of the material direct and indirect subsidiaries of the Intermediate Partnership. On October 16, 2015 the ARLP Revolving Credit Facility was amended to increase the baskets for permitted other unsecured debt and capital lease obligations and for annual sale-leaseback arrangements. The Intermediate Partnership also has a $100.0 million accounts receivable securitization facility (“ARLP Securitization Facility”). At March 31, 2016, current maturities include the ARLP Securitization Facility and a portion of the Term Loan. 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 1.38 to 1.0 and 22.7 to 1.0, respectively, for the trailing twelve months ended March 31, 2016. The ARLP Partnership was in compliance with the covenants of the ARLP Debt Arrangements as of March 31, 2016. At March 31, 2016, the ARLP Partnership had borrowings of $450.0 million and $5.9 million of letters of credit outstanding with $244.1 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 was renewed in December 2015 and matures in December 2016. On February 24, 2016 the facility was amended to include additional subsidiaries as sellers of trade receivables, thereby increasing availability under the facility. At March 31, 2016, the ARLP Partnership had $91.7 million outstanding under the ARLP Securitization Facility. On October 6, 2015, Cavalier Minerals JV, LLC (“Cavalier Minerals”) (See Note 8 – Variable Interest Entities) entered into a credit agreement (the “Cavalier Credit Agreement”) with Mineral Lending, LLC (“Mineral Lending”) for a $100.0 million line of credit (the “Cavalier Credit Facility”). Mineral Lending is an entity owned by a) Alliance Resource Holdings II, Inc. ( “ ARH II, ” the parent of ARH), b) an entity owned by an officer of ARH who is also a director of ARH II (“ARH Officer”) and c) foundations established by the President and Chief Executive Officer of MGP and Kathleen S. Craft. There is no commitment fee under the facility. Borrowings under the Cavalier Credit Facility bear interest at a one month LIBOR rate plus 6% with interest payable quarterly. Repayment of the principal balance will begin following the first fiscal quarter after the earlier of the date on which the aggregate amount borrowed exceeds $90.0 million or December 31, 2017, in quarterly payments of an amount equal to the greater of $1.3 million initially, escalated to $2.5 million after two years, or fifty percent of Cavalier Minerals ’ excess cash flow. The Cavalier Credit Facility matures September 30, 2024, at which time all amounts then outstanding are required to be repaid. To secure availability of the facility, Cavalier Minerals pledged all of its partnership interests, owned or later acquired, in AllDale Minerals, L.P. (“AllDale I”) and AllDale Minerals II, L.P. (“AllDale II”) (collectively “AllDale Minerals”). Cavalier Minerals may prepay the Cavalier Credit Facility at any time in whole or in part subject to terms and conditions described in the Cavalier Credit Agreement. As of March 31, 2016, Cavalier Minerals had not drawn on the Cavalier Credit Facility.

NONCONTROLLING INTERESTS

NONCONTROLLING INTERESTS	3 Months Ended
	Mar. 31, 2016
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS	7. NONCONTROLLING INTERESTS 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 (See Note 1 – Organization and Presentation) and an affiliate ownership interest in Cavalier Minerals (See Note 8 – Variable Interest Entities). The following table summarizes the components of noncontrolling interests recorded in Partners’ Capital for the periods indicated: March 31, December 31, 2016 2015 (in thousands) Noncontrolling interests reflected in Partners ’ Capital: Affiliate (SGP) $ $ Non-Affiliates (ARLP ’ s non-affiliate limited partners) Affiliate (Cavalier Minerals) (See Note 8 – Variable Interest Entities) 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 (See Note 11 – Compensation Plans). The following table summarizes net income attributable to each component of the noncontrolling interests for the periods indicated: Three Months Ended March 31, 2016 2015 (in thousands) 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: Three Months Ended March 31, 2016 2015 (in thousands) 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 March 31, 2016 and December 31, 2015 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 three months ended March 31, 2016 and 2015: Alliance Holdings GP, L.P. Limited Partners’ Capital Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest Total Partners’ Capital Balance at January 1, 2016 $ $ $ $ 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 March 31, 2016 $ $ $ $ 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 March 31, 2015 $ $ $ $

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	3 Months Ended
	Mar. 31, 2016
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES	8. VARIABLE INTEREST ENTITIES Cavalier Minerals On November 10, 2014, the ARLP Partnership ’ s wholly owned subsidiary, Alliance Minerals, and Bluegrass Minerals Management, LLC (“Bluegrass Minerals”) entered into a limited liability company agreement (the “Cavalier Agreement”) to create Cavalier Minerals, which was formed to indirectly acquire oil and gas mineral interests, initially through its 71.7% noncontrolling ownership interest in AllDale I and subsequently through its 72.8% noncontrolling ownership interest in AllDale II. Alliance Minerals and Bluegrass Minerals initially committed funding of $48.0 million and $2.0 million, respectively, to Cavalier Minerals, and Cavalier Minerals committed funding of $49.0 million to AllDale I. On October 6, 2015, Alliance Minerals and Bluegrass Minerals committed to fund an additional $96.0 million and $4.0 million, respectively, to Cavalier Minerals, and Cavalier Minerals committed to fund $100.0 million to AllDale II. Alliance Minerals ’ contributions through December 31, 2015 to Cavalier Minerals totaled $63.1 million. During the three months ended March 31, 2016, Alliance Minerals contributed an additional $19.1 million bringing the ARLP Partnership ’ s total investment in Cavalier Minerals to $82.2 million at March 31, 2016. The ARLP Partnership ’ s remaining commitment to Cavalier Minerals at March 31, 2016 was $61.8 million. Bluegrass Minerals, which is owned and controlled by the ARH Officer as discussed in Note 6 – Long-Term Debt and is Cavalier Minerals ’ managing member, contributed $3.4 million to Cavalier Minerals as of March 31, 2016 and has a remaining commitment of $2.6 million. At Alliance Minerals ’ election, Cavalier Minerals will meet its remaining funding commitment to AllDale Minerals through contributions from Alliance Minerals and Bluegrass Minerals or from borrowings under the Cavalier Credit Facility (see Note 6 – Long-Term Debt). The ARLP Partnership expects to fund its remaining commitments 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, or by requiring Cavalier Minerals to draw on the Cavalier Credit Facility. In accordance with the Cavalier Agreement, Bluegrass Minerals is entitled to receive an incentive distribution from Cavalier Minerals equal to 25% of all distributions (including in liquidation) after return of members’ capital reduced by certain distributions received by Bluegrass Minerals or its owner from AllDale Minerals Management, LLC (“AllDale Minerals Management”), the managing member of AllDale Minerals. Alliance Minerals ’ ownership interest in Cavalier Minerals at March 31, 2016 was 96%. The remainder of the equity ownership is held by Bluegrass Minerals. The ARLP Partnership has consolidated Cavalier Minerals ’ financial results as it concluded that Cavalier Minerals is a variable interest entity (“VIE”) and the ARLP Partnership is the primary beneficiary because neither Bluegrass Minerals nor Alliance Minerals individually have both the power and the benefits related to Cavalier Minerals and the ARLP Partnership is most closely aligned with Cavalier Minerals through its substantial equity ownership. Bluegrass Minerals equity ownership of Cavalier Minerals is accounted for as noncontrolling ownership interest in our condensed consolidated balance sheets. In addition, earnings attributable to Bluegrass Minerals are recognized as noncontrolling interest in our condensed consolidated statements of income. WKY CoalPlay On November 17, 2014, SGP Land, LLC (“SGP Land”), a wholly-owned subsidiary of SGP, and two limited liability companies (“Craft Companies”) owned by irrevocable trusts established by the President and Chief Executive Officer of MGP entered into a limited liability company agreement to form WKY CoalPlay, LLC (“WKY CoalPlay”). WKY CoalPlay was formed, in part, to purchase and lease coal reserves. WKY CoalPlay is managed by the ARH Officer discussed in Note 6 – Long-Term Debt, who is also an employee of SGP Land and trustee of the irrevocable trusts owning the Craft Companies. In December 2014 and February 2015, the ARLP Partnership entered into various coal reserve leases with WKY CoalPlay. During the three months ended March 31, 2016, the ARLP Partnership paid $10.8 million of advanced royalties to WKY CoalPlay. As of March 31, 2016, the ARLP Partnership had $21.5 million of advanced royalties outstanding under the leases, which is reflected in the Advance royalties, net line item in our condensed consolidated balance sheets. The ARLP Partnership has concluded that WKY CoalPlay is a VIE because of its ability to exercise options to acquire reserves under lease with WKY CoalPlay, which is not within the control of the equity holders and, if it occurs, could potentially limit the expected residual return to the owners of WKY CoalPlay. The ARLP Partnership does not have any economic or governance rights related to WKY CoalPlay and the ARLP Partnership’s options that provide it 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. The ARLP Partnership ARLP is a publicly-traded master limited partnership (NASDAQ ticker “ARLP”) created in 1999 to acquire certain coal production and marketing assets of ARH. AHGP holds 41.8% of the limited partnership interests in ARLP in addition to a 1.98% general partner interest in the ARLP Partnership through its 100% ownership of MGP. The limited partners do not have substantive kick-out rights to remove the general partner nor do they have substantive participating rights in the activities of ARLP, therefore we determined that ARLP is a variable interest entity. To determine the primary beneficiary of ARLP, we considered that AHGP through its 100% ownership of MGP has the sole ability to direct the activities of ARLP and with its ownership of 41.8% limited partner interest and all the incentive distribution rights through MGP, has economic benefit that is significant to ARLP. As a result we determined that AHGP has both the power and benefits with respect to ARLP and is therefore the primary beneficiary and consolidates ARLP. The Partnership Agreement (the “Agreement”) of ARLP requires MGP to distribute on a quarterly basis 100% of ARLP’s available cash to ARLP’s partners. Available cash is determined as defined in the Agreement and represents all cash with the exception of cash reserves (i) for the proper conduct of the business including reserves for future capital expenditures and for anticipated credit needs of the ARLP Partnership, (ii) to comply with debt obligations or (iii) to provide funds for certain subsequent distributions. MGP is required under the terms of the Agreement to meet the distribution requirements as discussed above. As discussed in Note 6 – Long-Term Debt, the Intermediate Partnership’s debt covenants place additional restrictions on distributions from ARLP by limiting cash available for distribution based on various debt covenants pertaining to the most recent preceding quarter. MGP cannot hold cash reserves to provide for subsequent distributions if that would prevent ARLP from making its minimum quarterly distributions or any cumulative distributions in arrears. MGP does not have the ability to amend the Agreement without the consent of a majority of the limited partners.

EQUITY INVESTMENTS

EQUITY INVESTMENTS	3 Months Ended
	Mar. 31, 2016
EQUITY INVESTMENTS
EQUITY INVESTMENTS	9. EQUITY INVESTMENT AllDale Minerals On November 10, 2014, Cavalier Minerals (see Note 8 – Variable Interest Entities) made an initial contribution of $7.4 million in return for a limited partner interest in AllDale Minerals, which was created to purchase oil and gas mineral interests in various geographic locations within producing basins in the continental U.S. As of December 31, 2015, Cavalier Minerals had contributed $65.9 million to AllDale Minerals. During the three months ended March 31, 2016, Cavalier Minerals contributed an additional $20.2 million, bringing the total investment in AllDale Minerals to $86.1 million as of March 31, 2016. 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, the ARLP Partnership accounts for Cavalier Minerals’ ownership interest in the income or loss of AllDale Minerals as an equity investment in our condensed consolidated financial statements. The ARLP Partnership records equity income or loss based on AllDale Minerals’ distribution structure. For the three months ended March 31, 2016 and 2015, the ARLP Partnership has been allocated losses of $27,000 and $0.3 million, respectively, from AllDale Minerals. AllDale Minerals distributed $0.4 million to Cavalier Minerals during the three months ended March 31, 2016.

WORKERS' COMPENSATION AND PNEUM

WORKERS' COMPENSATION AND PNEUMOCONIOSIS	3 Months Ended
	Mar. 31, 2016
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: Three Months Ended March 31, 2016 2015 (in thousands) Beginning balance $ $ Accruals increase Payments Interest accretion Ending balance $ $ 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: Three Months Ended March 31, 2016 2015 (in thousands) 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 (excluding depreciation, depletion and amortization) line item within our condensed consolidated statements of income.

COMPENSATION PLANS

COMPENSATION PLANS	3 Months Ended
	Mar. 31, 2016
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 MGP, subject to review and approval of the compensation committee of the MGP board of directors (the “MGP Compensation Committee”). On January 22, 2016, the MGP Compensation Committee determined that the vesting requirements for the 2013 grants of 284,272 restricted units (which was net of 9,178 forfeitures) had been satisfied as of January 1, 2016. As a result of this vesting, on February 11, 2016, the ARLP Partnership issued 176,319 unrestricted common units to the ARLP LTIP participants. The remaining units were settled in cash to satisfy the individual statutory minimum tax obligations of the ARLP LTIP participants. On January 22, 2016, the MGP Compensation Committee authorized additional grants of 969,028 restricted units, of which 960,992 units were granted during the three months ended March 31, 2016 and will vest on January 1, 2019, subject to satisfaction of certain financial tests. The fair value of these 2016 grants is equal to the intrinsic value at the date of grant, which was $12.38 per unit. ARLP LTIP expense was $2.9 million and $2.6 million for the three months ended March 31, 2016 and 2015, respectively. After consideration of the January 1, 2016 vesting and subsequent issuance of 176,319 common units, approximately 2.8 million units remain available under the ARLP LTIP for issuance in the future, assuming all grants issued in 2014, 2015 and 2016 currently outstanding are settled with ARLP common units, without reduction for tax withholding, and no future forfeitures occur . As of March 31, 2016 , there was $20.8 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 2.1 years. As of March 31, 2016 , the intrinsic value of the non-vested ARLP LTIP grants was $18.8 million . As of March 31, 2016 , the total obligation associated with the ARLP LTIP was $15.3 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 and the terms of the ARLP LTIP awards, all non-vested grants include contingent rights to receive quarterly cash distributions in an amount or, in the case of the 2016 grants, in the discretion of the MGP Compensation Committee, phantom units credited to a bookkeeping account with value, 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 March 31, 2016. 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 three months ended March 31, 2016 and 2015, SERP and MGP Deferred Compensation Plan participant notional account balances were credited with a total of 25,661 and 6,376 phantom units, respectively, and the fair value of these phantom units was $11.46 per unit and $37.45 per unit, respectively, on a weighted-average basis. For the three months ended March 31, 2016 and 2015, AGP Deferred Compensation Plan participant notional account balances were credited with a total of 3,547 and 983 phantom units, respectively, and the fair value of these phantom units was $17.02 per unit and $58.24 per unit, respectively, on a weighted-average basis. Total SERP and Deferred Compensation Plans expense was approximately $0.4 million for each of the three months ended March 31, 2016 and 2015. As of March 31, 2016 , there were 463,156 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 $5.5 million . As of March 31, 2016 , the total obligation associated with the SERP and MGP Deferred Compensation Plan was $13.8 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 $0.8 million, which was included in the partners’ capital-limited partners line item in our condensed consolidated balance sheets. On March 3, 2016, we provided 6,958 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	3 Months Ended
	Mar. 31, 2016
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: Three Months Ended March 31, 2016 2015 (in thousands) 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 (excluding depreciation, depletion and amortization) line item within our condensed consolidated statements of income. During the three months ended March 31, 2016, the ARLP Partnership made a contribution payment of $0.6 million to the Pension Plan for the 2015 plan year and $0.1 million to the Pension Plan for the 2016 plan year. On April 15, 2016, the ARLP Partnership made a contribution payment of $0.6 million for the 2016 plan year.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2016
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 two reportable segments: Illinois Basin and Appalachia, and an “all other” category referred to as Other and Corporate. Our reportable segments correspond to major coal producing regions in the eastern U.S. Similar economic characteristics for our operating segments within each of these two reportable segments generally include coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues. As a result of the ARLP Partnership acquiring the remaining equity interests in White Oak Resources LLC ( “White Oak”) and the assumption of operating control of the White Oak Mine No. 1 (now known as the Hamilton Mine No. 1) on July 31, 2015 (the “White Oak Acquisition”), the ARLP Partnership restructured its reportable segments to include Hamilton as part of our Illinois Basin segment due to the similarities in product, management, location, and operation with other mines included in the segment. This new organization reflects how the ARLP Partnership’s chief operating decision maker manages and allocates resources to our various operations. Prior periods have been recast to include transactions of our former White Oak segment in the Illinois Basin segment. 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 and Gibson South mines, Hopkins County Coal, LLC’s mining complex, which includes the 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 (“Sebree”), which includes the Onton mine, Steamport, LLC and certain Sebree reserves, River View Coal, LLC’s mining complex and the Hamilton mining complex. The Sebree and Fies properties are held by the ARLP Partnership for future mine development. The Elk Creek mine depleted its reserves in March 2016 and ceased production on April 1, 2016. The Onton and Gibson North mines have been idled since the fourth quarter of 2015 in response to market conditions and continued increases in coal inventories at the mines and customer locations. The Appalachia reportable segment is comprised of multiple operating segments, including the Mettiki mining complex, the Tunnel Ridge, LLC mining complex and the MC Mining, LLC mining complex. The Mettiki mining complex includes Mettiki Coal (WV), LLC’s Mountain View mine and Mettiki Coal, LLC’s preparation plant. During the fourth quarter of 2015, the ARLP Partnership surrendered the Penn Ridge leases as they were no longer a core part of the ARLP Partnership’s foreseeable development plans. Other and Corporate includes the ARLP Partnership and AHGP’s marketing and administrative expenses, Alliance Service, Inc. (“ASI”) and its subsidiary, Matrix Design Group, LLC and its subsidiaries Matrix Design International, LLC and Matrix Design Africa (PTY) LTD (“Matrix Design”), Alliance Design Group, LLC (“Alliance Design”) (collectively, the Matrix Design entities and Alliance Design are referred to as the “Matrix Group”), ASI’s ownership of aircraft, the Mt. Vernon Transfer Terminal, LLC (“Mt. Vernon”) dock activities, coal brokerage activity, Mid-America Carbonates, LLC (“MAC”), certain activities of Alliance Resource Properties, Pontiki Coal, LLC’s throughput receivables and prior workers’ compensation and pneumoconiosis liabilities, Wildcat Insurance, LLC (“Wildcat Insurance”), Alliance Minerals, and its affiliate, Cavalier Minerals (See Note 8 – Variable Interest Entities), which holds an equity investment in AllDale Minerals (Note 9 – Equity Investment), and AROP Funding (Note 6 – Long-Term Debt). Reportable segment results as of and for the three months ended March 31, 2016 and 2015 are presented below. Illinois Basin Appalachia Other and Corporate Elimination (1) Consolidated (in thousands) Three months ended March 31, 2016 Total revenues (2) $ $ $ $ $ Segment Adjusted EBITDA Expense (3) Segment Adjusted EBITDA (4)(5) Total assets (6) Capital expenditures - Three months ended March 31, 2015 (recast) 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 and MAC 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, MAC 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) : Three Months Ended March 31, 2016 2015 (in thousands) 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: Three Months Ended March 31, 2016 2015 (in thousands) Consolidated Segment Adjusted EBITDA $ $ General and administrative Depreciation, depletion and amortization Interest expense, net Income tax benefit Net income $ $ (5) Includes equity in loss of affiliates for the three months ended March 31, 2016 and 2015 of $27,000 and $0.3 million, respectively, for Other and Corporate. Includes equity in loss of affiliates for the three months ended March 31, 2015 of $9.4 million in the Illinois Basin segment. (6) Total assets for Other and Corporate include investments in affiliate of $84.2 million at March 31, 2016. Total assets at March 31, 2015 for the Illinois Basin segment and Other and Corporate include investments in affiliates of $212.5 million and $19.5 million, respectively. (7) Capital expenditures shown above exclude the Patriot acquisition on February 3, 2015 and the MAC acquisition on January 1, 2015.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	14. SUBSEQUENT EVENTS On April 26, 2016, we declared a quarterly distribution for the quarter ended March 31, 2016, of $0.55 per unit on all common units outstanding, totaling approximately $32.9 million, payable on May 20, 2016 to all unitholders of record as of May 13, 2016. On April 26, 2016, the ARLP Partnership declared a quarterly distribution for the quarter ended March 31, 2016, of $0.4375 per unit, on all common units outstanding, totaling approximately $52.4 million, including MGP ’ s incentive distributions, payable on May 13, 2016 to all unitholders of record as of May 6, 2016.

ORGANIZATION AND PRESENTATION (

ORGANIZATION AND PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2016
ORGANIZATION AND PRESENTATION
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements include our accounts and operations and those of MGP, ARLP (a variable interest entity of which AHGP is the primary beneficiary), ARLP’s consolidated Intermediate Partnership and the Intermediate Partnership’s operating subsidiaries and present the financial position as of March 31, 2016 and December 31, 2015 and the results of operations, comprehensive income and cash flows for the three months ended March 31, 2016 and 2015. ARLP and its consolidated subsidiaries represent virtually all the net assets and operations of AHGP. All intercompany transactions and accounts have been eliminated. See Note 8 – Variable Interest Entities for information regarding our consolidation of ARLP. 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 noncontrolling interest in our condensed consolidated statements of income and balance sheet. 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. 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.” These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the results for the periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2016. These condensed consolidated financial statements and notes are prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting and do not include all of the information normally included with financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) of the U.S. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015.
Use of Estimates	Use of Estimates The preparation of AHGP Partnership ’ s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in our condensed consolidated financial statements. Actual results could differ from those estimates.
Goodwill	Goodwill Goodwill represents the excess of cost over the fair value of net assets of acquired businesses. Goodwill is not amortized, but instead is evaluated for impairment periodically. The ARLP Partnership evaluates goodwill for impairment annually on November 30 th , or more often if events or circumstances indicate that goodwill might be impaired. The reporting unit or units used to evaluate and measure goodwill for impairment are determined primarily from the manner in which the business is managed or operated. A reporting unit is an operating segment or a component that is one level below an operating segment. There were no impairments of goodwill during the three month period ended March 31, 2016. In future periods it is reasonably possible that a variety of circumstances could result in an impairment of goodwill.

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2016
INVENTORIES
Schedule of inventories	March 31, 2016 December 31, 2015 (in thousands) Coal $ $ Supplies (net of reserve for obsolescence of $3,706 and $3,841, respectively) Total inventory $ $

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2016
FAIR VALUE MEASUREMENTS
Summary of recurring fair value measurements within the hierarchy	March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Long-term debt $ - $ $ - $ - $ $ - Contingent consideration - - - - Total $ - $ $ $ - $ $

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2016
LONG-TERM DEBT
Schedule of long-term debt	Principal Unamortized Debt Issuance Costs March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 (in thousands) ARLP Revolving Credit facility $ $ $ $ ARLP Series B senior notes ARLP Term loan - - ARLP Securitization facility - - Less current maturities Total long-term debt $ $ $ $

NONCONTROLLING INTERESTS (Table

NONCONTROLLING INTERESTS (Tables)	3 Months Ended
	Mar. 31, 2016
NONCONTROLLING INTERESTS
Components of noncontrolling interests recorded in Partners' Capital	March 31, December 31, 2016 2015 (in thousands) Noncontrolling interests reflected in Partners ’ Capital: Affiliate (SGP) $ $ Non-Affiliates (ARLP ’ s non-affiliate limited partners) Affiliate (Cavalier Minerals) (See Note 8 – Variable Interest Entities) Accumulated other comprehensive loss attributable to noncontrolling interests Total noncontrolling interests $ $
Summary of net income attributable to noncontrolling interests	Three Months Ended March 31, 2016 2015 (in thousands) 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	Three Months Ended March 31, 2016 2015 (in thousands) 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	Alliance Holdings GP, L.P. Limited Partners’ Capital Accumulated Other Comprehensive Income (Loss) Noncontrolling Interest Total Partners’ Capital Balance at January 1, 2016 $ $ $ $ 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 March 31, 2016 $ $ $ $ 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 March 31, 2015 $ $ $ $

WORKERS' COMPENSATION AND PNE27

WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables)	3 Months Ended
	Mar. 31, 2016
Accrued Workers Compensation And Pneumoconiosis Benefits
Reconciliation of changes in workers' compensation liability	Three Months Ended March 31, 2016 2015 (in thousands) Beginning balance $ $ Accruals increase Payments Interest accretion Ending balance $ $
Pneumoconiosis benefits
Accrued Workers Compensation And Pneumoconiosis Benefits
Components of net periodic benefit cost	Three Months Ended March 31, 2016 2015 (in thousands) 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 (excluding depreciation, depletion and amortization) line item within our condensed consolidated statements of income.

COMPONENTS OF PENSION PLAN NE28

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Tables)	3 Months Ended
	Mar. 31, 2016
Pension Plan
Employee Benefit Plans
Components of net periodic benefit cost	Three Months Ended March 31, 2016 2015 (in thousands) 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 (excluding depreciation, depletion and amortization) line item within our condensed consolidated statements of income.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2016
SEGMENT INFORMATION
Schedule of reportable segment results	Illinois Basin Appalachia Other and Corporate Elimination (1) Consolidated (in thousands) Three months ended March 31, 2016 Total revenues (2) $ $ $ $ $ Segment Adjusted EBITDA Expense (3) Segment Adjusted EBITDA (4)(5) Total assets (6) Capital expenditures - Three months ended March 31, 2015 (recast) 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 and MAC 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, MAC 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) : Three Months Ended March 31, 2016 2015 (in thousands) 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: Three Months Ended March 31, 2016 2015 (in thousands) Consolidated Segment Adjusted EBITDA $ $ General and administrative Depreciation, depletion and amortization Interest expense, net Income tax benefit Net income $ $ (5) Includes equity in loss of affiliates for the three months ended March 31, 2016 and 2015 of $27,000 and $0.3 million, respectively, for Other and Corporate. Includes equity in loss of affiliates for the three months ended March 31, 2015 of $9.4 million in the Illinois Basin segment. (6) Total assets for Other and Corporate include investments in affiliate of $84.2 million at March 31, 2016. Total assets at March 31, 2015 for the Illinois Basin segment and Other and Corporate include investments in affiliates of $212.5 million and $19.5 million, respectively. (7) Capital expenditures shown above exclude the Patriot acquisition on February 3, 2015 and the MAC acquisition on January 1, 2015.
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)	Three Months Ended March 31, 2016 2015 (in thousands) 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 March 31, 2016 2015 (in thousands) Consolidated Segment Adjusted EBITDA $ $ General and administrative Depreciation, depletion and amortization Interest expense, net Income tax benefit Net income $ $

ORGANIZATION AND PRESENTATION30

ORGANIZATION AND PRESENTATION (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)shares
Ownership interests
Ownership percentage by limited partners	100.00%
Impairments of goodwill | $	$ 0
MGP
Ownership interests
Subsidiaries holding percentage	100.00%
ARLP
Ownership interests
Units owned by parent | shares	31,088,338
ARLP | SGP
Ownership interests
Ownership percentage by noncontrolling owners	0.01%
Intermediate Partnership | SGP
Ownership interests
Ownership percentage by noncontrolling owners	0.01%

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
INVENTORIES
Coal	$ 117,610	$ 83,682
Supplies (net of reserve for obsolescence of $3,706 and $3,841, respectively)	37,734	37,399
Total inventory	155,344	121,081
Reserve for obsolescence	3,706	$ 3,841
Lower of cost or market adjustment to coal inventories	$ 12,300

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Estimated fair value - Recurring - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Level 2
FAIR VALUE MEASUREMENTS
Long-term debt	$ 886,481	$ 819,099
Total	886,481	819,099
Level 3
FAIR VALUE MEASUREMENTS
Contingent consideration	10,400	10,400
Total	$ 10,400	$ 10,400

LONG-TERM DEBT - Components (De

LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Principal
Long-term debt including current and non-current	$ 886,700	$ 819,350
Less current maturities	(241,700)	(239,350)
Total long-term debt	645,000	580,000
Unamortized Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(1,528)	(1,844)
Less current maturities	1,264	1,264
Total unamortized debt issuance costs	(264)	(580)
ARLP Revolving Credit Facility
Principal
Long-term debt including current and non-current	450,000	385,000
Unamortized Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(1,376)	(1,675)
ARLP Term Loan
Principal
Long-term debt including current and non-current	200,000	206,250
ARLP Series B Senior Notes
Principal
Long-term debt including current and non-current	145,000	145,000
Unamortized Debt Issuance Costs
Unamortized debt issuance costs including current and non-current	(152)	(169)
ARLP Securitization facility
Principal
Long-term debt including current and non-current	$ 91,700	$ 83,100

LONG-TERM DEBT - ARLP Debt Arra

LONG-TERM DEBT - ARLP Debt Arrangements and Securitization Facility (Details) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2016USD ($)
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		1.38
Actual cash flow to interest expense ratio for trailing twelve months		22.7
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	$ 700
Letters of credit outstanding	5.9	5.9
Line of credit facility, available for borrowing	$ 244.1	244.1
Frequency of commitment fee on undrawn portion	annual
Annual commitment fee percentage, undrawn portion	0.25%
ARLP Securitization facility
Long-Term Debt
Revolving credit facility	$ 100	$ 100

LONG-TERM DEBT - Cavalier (Deta

LONG-TERM DEBT - Cavalier (Details) - Cavalier Credit Agreement $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)
Long-Term Debt
Credit facility amount	$ 100
Annual commitment fee percentage, undrawn portion	0.00%
Threshold aggregate borrowings to trigger principle repayment	$ 90
Period for initial amount of payments	2 years
Minimum
Long-Term Debt
Initial quarterly payments	$ 1.3
Quarterly payments after initial period	$ 2.5
Quarterly payments as a percentage of excess cash flow	50.00%
LIBOR
Long-Term Debt
Basis spread for variable interest rate (as a percent)	6.00%

NONCONTROLLING INTERESTS - Part

NONCONTROLLING INTERESTS - Partners' Capital (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 1999
Noncontrolling Interest
Noncontrolling interests	$ 430,040	$ 441,748
ARLP
Noncontrolling Interest
Units owned by parent	31,088,338
Accumulated Other Comprehensive Loss Attributable To Noncontrolling Interests
Noncontrolling Interest
Noncontrolling interests	$ (19,644)	(19,682)
SGP
Noncontrolling Interest
Noncontrolling interests	$ (303,834)	(303,822)	$ (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	$ 750,139	762,667
Affiliate (Cavalier Minerals)
Noncontrolling Interest
Noncontrolling interests	$ 3,379	$ 2,585

NONCONTROLLING INTERESTS - Net

NONCONTROLLING INTERESTS - Net Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Noncontrolling Interest
Net income attributable to noncontrolling interest	$ 16,047	$ 40,404
SGP
Noncontrolling Interest
Net income attributable to noncontrolling interest	6	14
Non-Affiliates (ARLP's non-affiliate limited partners)
Noncontrolling Interest
Net income attributable to noncontrolling interest	16,043	40,403
Affiliate (Cavalier Minerals)
Noncontrolling Interest
Net income attributable to noncontrolling interest	$ (2)	$ (13)

NONCONTROLLING INTERESTS - Dist

NONCONTROLLING INTERESTS - Distributions (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Noncontrolling Interest
Distributions paid by consolidated partnership to noncontrolling interests		$ 30,388	$ 28,688
SGP
Noncontrolling Interest
Distributions paid by consolidated partnership to noncontrolling interests	[1]	18	15
Non-Affiliates (ARLP's non-affiliate limited partners)
Noncontrolling Interest
Distributions paid by consolidated partnership to noncontrolling interests	[1]	$ 30,370	$ 28,673
[1]	Distributions paid to noncontrolling interests, in the table above, represent ARLP's quarterly distributions in accordance with the ARLP partnership agreement.

NONCONTROLLING INTERESTS - Roll

NONCONTROLLING INTERESTS - Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Increase (Decrease) in Partners' Capital
Balance	$ 994,132	$ 1,018,274
Net income	46,889	105,934
Other comprehensive income	128	729
Settlement of directors deferred compensation	(427)	(177)
Vesting of ARLP Long-Term Incentive Plan	(1,001)	(2,719)
Common unit-based compensation	3,195	2,892
Distributions on ARLP common unit-based compensation	(1,277)	(740)
Contributions to consolidated company from affiliate noncontrolling interest	796	333
Distributions to AHGP Partners	(57,468)	(54,775)
Distributions paid by consolidated partnership to noncontrolling interest	(29,111)	(27,948)
Balance	955,856	1,041,803
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Partners' Capital
Balance	(14,875)	(15,456)
Other comprehensive income	90	314
Balance	(14,785)	(15,142)
Noncontrolling Interest
Increase (Decrease) in Partners' Capital
Balance	441,748	453,496
Net income	16,047	40,404
Other comprehensive income	38	415
Settlement of directors deferred compensation	(335)
Vesting of ARLP Long-Term Incentive Plan	(1,001)	(2,719)
Common unit-based compensation	3,135	2,835
Distributions on ARLP common unit-based compensation	(1,277)	(740)
Contributions to consolidated company from affiliate noncontrolling interest	796	333
Distributions paid by consolidated partnership to noncontrolling interest	(29,111)	(27,948)
Balance	430,040	466,076
Limited Partners' Capital
Increase (Decrease) in Partners' Capital
Balance	567,259	580,234
Net income	30,842	65,530
Settlement of directors deferred compensation	(92)	(177)
Common unit-based compensation	60	57
Distributions to AHGP Partners	(57,468)	(54,775)
Balance	$ 540,601	$ 590,869

VARIABLE INTEREST ENTITIES - Ca

VARIABLE INTEREST ENTITIES - Cavalier Minerals (Details) - USD ($) $ in Thousands	3 Months Ended		14 Months Ended	17 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Mar. 31, 2016	Oct. 06, 2015	Nov. 10, 2014
Variable Interest Entities
Funding contributed	$ 20,168	$ 18,804
Contributions from noncontrolling owner	$ 796	$ 333
All Dale I | Cavalier Minerals
Variable Interest Entities
Noncontrolling ownership interest (as a percent)	71.70%			71.70%
Initial funding commitment						$ 49,000
All Dale II | Cavalier Minerals
Variable Interest Entities
Noncontrolling ownership interest (as a percent)	72.80%			72.80%
Additional funding commitment					$ 100,000
Cavalier Minerals | Variable Interest Entity, Primary Beneficiary
Variable Interest Entities
Initial funding commitment						48,000
Noncontrolling owner's initial funding commitment						$ 2,000
Additional funding commitment					96,000
Noncontrolling owner's additional funding commitment					$ 4,000
Funding contributed	$ 19,100		$ 63,100	$ 82,200
Remaining funding commitment	61,800			61,800
Contributions from noncontrolling owner				3,400
Remaining funding committed by noncontrolling owners	$ 2,600			$ 2,600
Incentive distribution for noncontrolling owners (as a percent)	25.00%
Ownership interest in VIE (as a percent)	96.00%

VARIABLE INTEREST ENTITIES - Ot

VARIABLE INTEREST ENTITIES - Other VIEs (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)company
MGP
Variable Interest Entities
Percentage of available cash distributed	100.00%
MGP
Variable Interest Entities
Ownership interest (as a percent)	100.00%
Variable Interest Entity, Primary Beneficiary | ARLP | Limited Partners' Capital
Variable Interest Entities
Ownership interest in VIE (as a percent)	41.80%
Variable Interest Entity, Primary Beneficiary | ARLP | General Partner Interest
Variable Interest Entities
Ownership interest in VIE (as a percent)	1.98%
WKY CoalPlay | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entities
Number of limited liability companies related to MGP, that formed the related party together with SGP Land | company	2
WKY CoalPlay | Variable Interest Entity, Not Primary Beneficiary | Coal lease
Variable Interest Entities
Payments for royalties	$ 10.8
Advance royalties	$ 21.5

EQUITY INVESTMENTS (Details)

EQUITY INVESTMENTS (Details) - AllDale Minerals - USD ($)	Nov. 10, 2014	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Equity Investments
Allocated losses		$ 27,000	$ 300,000
Cavalier Minerals
Equity Investments
Contribution to equity investee	$ 7,400,000	20,200,000
Contributions to investee to date		86,100,000		$ 65,900,000
Distributions received from investee		$ 400,000

WORKERS' COMPENSATION AND PNE43

WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Workers' Compensation Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reconciliation of the changes in workers' compensation liability
Beginning balance	$ 54,558	$ 57,557
Accruals increase	3,237	2,667
Payments	(2,723)	(2,514)
Interest accretion	492	488
Ending balance	$ 55,564	$ 58,198

WORKERS' COMPENSATION AND PNE44

WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Periodic Benefit Cost (Details) - Pneumoconiosis benefits - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Accrued Workers Compensation And Pneumoconiosis Benefits
Service cost		$ 648	$ 732
Interest cost		627	524
Amortization of net actuarial gain	[1]	(661)	(113)
Net periodic benefit cost		$ 614	$ 1,143
[1]	Amortization of net actuarial gain is included in the Operating expenses (excluding depreciation, depletion and amortization) line item within our condensed consolidated statements of income.

COMPENSATION PLANS - ARLP Long-

COMPENSATION PLANS - ARLP Long-Term Incentive Plan (Details) - ARLP LTIP - USD ($) $ / shares in Units, $ in Millions	Feb. 11, 2016	Jan. 01, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Jan. 22, 2016
Compensation Plans
Common units issued upon vesting	176,319
Common unit-based based compensation expense			$ 2.9	$ 2.6
Units available for grant			2,800,000
Unrecognized compensation expense			$ 20.8
Weighted-average period for recognition of expense			2 years 1 month 6 days
Total unit based obligation recorded			$ 15.3
Phantom Share Units (PSUs)
Compensation Plans
Additional grants authorized (in units)						969,028
Units granted			960,992
Fair value as intrinsic value at date of grant (in dollars per unit)			$ 12.38
Intrinsic value of outstanding grants			$ 18.8
Phantom Share Units (PSUs) | 2013 Grants
Compensation Plans
Units for which vesting requirements were deemed satisfied		284,272
Forfeitures (in units)					9,178

COMPENSATION PLANS - Other Plan

COMPENSATION PLANS - Other Plans (Details) - USD ($) $ / shares in Units, $ in Millions	Mar. 03, 2016	Mar. 31, 2016	Mar. 31, 2015
AHGP LTIP
Compensation Plans
Units reserved for issuance		5,215,000
SERP and Deferred Compensation Plans
Compensation Plans
Common unit-based based compensation expense		$ 0.4	$ 0.4
SERP and Deferred Compensation Plans | Phantom Share Units (PSUs)
Compensation Plans
Units outstanding		463,156
Total intrinsic value		$ 5.5
SERP And MGP Deferred Compensation Plan
Compensation Plans
Total unit based obligation recorded		$ 13.8
SERP And MGP Deferred Compensation Plan | Phantom Share Units (PSUs)
Compensation Plans
Units granted		25,661	6,376
Fair value (in dollars per unit)		$ 11.46	$ 37.45
AGP Deferred Compensation Plan
Compensation Plans
Total unit based obligation recorded		$ 0.8
AGP Deferred Compensation Plan | Director
Compensation Plans
Common units issued	6,958
AGP Deferred Compensation Plan | Phantom Share Units (PSUs)
Compensation Plans
Units granted		3,547	983
Fair value (in dollars per unit)		$ 17.02	$ 58.24

COMPONENTS OF PENSION PLAN NE47

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Details) - USD ($) $ in Thousands		Apr. 15, 2016	Mar. 31, 2016	Mar. 31, 2015
Pension Plan
Components of net periodic benefit cost:
Service cost			$ 598	$ 618
Interest cost			1,132	1,074
Expected return on plan assets			(1,287)	(1,401)
Amortization of net loss	[1]		789	842
Net periodic benefit cost			1,232	$ 1,133
2015 plan year
Components of net periodic benefit cost:
Employer contribution			600
2016 plan year
Components of net periodic benefit cost:
Employer contribution		$ 600	$ 100
[1]	Amortization of net actuarial gain is included in the Operating expenses (excluding depreciation, depletion and amortization) line item within our condensed consolidated statements of income.

SEGMENT INFORMATION - Segment R

SEGMENT INFORMATION - Segment Results (Details)		3 Months Ended
		Mar. 31, 2016USD ($)segment		Mar. 31, 2015USD ($)		Dec. 31, 2015USD ($)
Segment information
Number of reportable segments | segment		2
Reportable segment results
Total revenues	[1]	$ 412,725,000		$ 560,300,000
Segment Adjusted EBITDA Expense	[2]	253,212,000		334,566,000
Segment Adjusted EBITDA	[3],[4]	152,928,000		208,900,000
Total assets		2,374,068,000	[5]	2,332,381,000	[5]	$ 2,366,516,000
Capital expenditures	[6]	31,733,000		50,330,000
Additional information
Equity in loss of affiliates, net		(27,000)		(9,686,000)
Investments in affiliate		84,234,000				$ 64,509,000
Operating segments | Illinois Basin
Reportable segment results
Total revenues	[1]	287,876,000		391,722,000
Segment Adjusted EBITDA Expense	[2]	171,079,000		229,864,000
Segment Adjusted EBITDA	[3],[4]	112,336,000		148,038,000
Total assets	[5]	1,685,134,000		1,613,946,000
Capital expenditures	[6]	18,014,000		33,757,000
Additional information
Equity in loss of affiliates, net				(9,400,000)
Investments in affiliate				212,500,000
Operating segments | Appalachia
Reportable segment results
Total revenues	[1]	118,326,000		156,248,000
Segment Adjusted EBITDA Expense	[2]	77,016,000		97,815,000
Segment Adjusted EBITDA	[3],[4]	39,382,000		55,833,000
Total assets	[5]	519,223,000		593,524,000
Capital expenditures	[6]	12,663,000		15,738,000
Operating segments | Other and Corporate
Reportable segment results
Total revenues	[1]	25,066,000		55,008,000
Segment Adjusted EBITDA Expense	[2]	20,746,000		46,483,000
Segment Adjusted EBITDA	[3],[4]	4,124,000		8,111,000
Total assets	[5]	302,575,000		278,012,000
Capital expenditures	[6]	1,056,000		835,000
Additional information
Equity in loss of affiliates, net		(27,000)		(300,000)
Investments in affiliate		84,200,000		19,500,000
Elimination
Reportable segment results
Total revenues	[1],[7]	(18,543,000)		(42,678,000)
Segment Adjusted EBITDA Expense	[2],[7]	(15,629,000)		(39,596,000)
Segment Adjusted EBITDA	[3],[4],[7]	(2,914,000)		(3,082,000)
Total assets	[5],[7]	$ (132,864,000)		$ (153,101,000)
[1]	Revenues included in the Other and Corporate column are primarily attributable to the Matrix Group revenues, Mt. Vernon transloading revenues, MAC 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 loss of affiliates for the three months ended March 31, 2016 and 2015 of $27,000 and $0.3 million, respectively, for Other and Corporate. Includes equity in loss of affiliates for the three months ended March 31, 2015 of $9.4 million in the Illinois Basin 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 Other and Corporate include investments in affiliate of $84.2 million at March 31, 2016. Total assets at March 31, 2015 for the Illinois Basin segment and Other and Corporate include investments in affiliates of $212.5 million and $19.5 million, respectively.
[6]	Capital expenditures shown above exclude the Patriot acquisition on February 3, 2015 and the MAC acquisition on January 1, 2015.
[7]	The elimination column represents the elimination of intercompany transactions and is primarily comprised of sales from the Matrix Group and MAC 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 - EBITDA Ex

SEGMENT INFORMATION - EBITDA Expense Reconciliation (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)
Segment Adjusted EBITDA Expense	[1]	$ 253,212	$ 334,566
Outside coal purchases			(322)
Other income		91	118
Operating expenses (excluding depreciation, depletion and amortization)		$ 253,303	$ 334,362
[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 - EBITDA Re

SEGMENT INFORMATION - EBITDA Reconciliation (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Reconciliation of consolidated Segment Adjusted EBITDA to net income
Consolidated Segment Adjusted EBITDA	[1],[2]	$ 152,928	$ 208,900
General and administrative		(17,553)	(17,263)
Depreciation, depletion and amortization		(80,883)	(78,268)
Interest expense, net		(7,611)	(7,437)
Income tax benefit		8	2
NET INCOME		$ 46,889	$ 105,934
[1]	Includes equity in loss of affiliates for the three months ended March 31, 2016 and 2015 of $27,000 and $0.3 million, respectively, for Other and Corporate. Includes equity in loss of affiliates for the three months ended March 31, 2015 of $9.4 million in the Illinois Basin 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) - Subsequent event $ / shares in Units, $ in Millions	Apr. 26, 2016USD ($)$ / shares
Subsequent Event
Distributions declared (in dollars per unit) | $ / shares	$ 0.55
Approximate distribution to be paid (in dollars) | $	$ 32.9
ARLP
Subsequent Event
Distributions declared (in dollars per unit) | $ / shares	$ 0.4375
Approximate distribution to be paid, including incentive distributions | $	$ 52.4