Alliance Holdings GP (AHGP) 8-K Alliance to Present at the 17th Annual Wachovia Nantucket Equity Conference

Wachovia Securities

Nantucket Equity Conference

June 26, 2007

Alliance Resource Partners, L.P.

Alliance Holdings GP, L.P.

Exhibit 99.2

Forward-Looking Statements

This

presentation

contains

forward-looking

statements

and

information

that

are

based

on

the

beliefs

of

Alliance Resource Partners, L.P. and Alliance Holdings GP, L.P. (the “Partnerships”) and those of their

respective general partners (the “General Partners”), as well as assumptions made by and information

currently

available

to

them.

When

used

in

this

presentation,

words

such

as

“anticipate,”

“project,”

“expect,”

“plan,”

“goal,”

“forecast,”

“intend,”

“could,”

“believe,”

“may,”

and similar expressions and

statements regarding the plans and objectives of the Partnerships for future operations, are intended to

identify forward-looking statements.

Although the Partnerships and their General Partners believe that such expectations reflected in such

forward-looking statements are reasonable at the time such statements are made, neither the Partnerships 

nor the General Partners can give assurances that such expectations will prove to be correct. Such

statements are subject to a variety of risks, uncertainties and assumptions.  If one or more of these risks or

uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially

from

those

the

Partnerships

anticipated,

estimated,

projected

or

expected.

The Partnerships have no obligation to publicly update or revise

any forward-looking statement, whether as

a result of new information, future events or otherwise.

Alliance  Overview

__________________

Diversified producer and marketer of coal to major U.S. utilities and

industrial users

Only publicly-traded master limited partnership involved in the

production and marketing of coal

Began mining operations in 1971

Currently operate eight underground mining complexes in Illinois,

Indiana, Kentucky, Maryland and West Virginia

Approximately 712

million tons of proven and probable coal reserves in

the Illinois Basin, Central Appalachia and Northern Appalachia regions

(a)

Consistent growth through internal development and disciplined

acquisitions

Fourth largest eastern coal producer and ninth largest in the U.S.

(b)

Sixth consecutive year of record performance

(a)

Estimated reserves at June 20, 2007, including Providence reserve acquisition.

(b)

Source:

Platts

coal data as of 9/30/06

Alliance Resource Partners, L.P.

1

Two Ways to Invest in Alliance Partnerships

(a)  Includes control group comprised of present and former members of ARLP management

(b)  Includes general partner interest held directly in ARLP’s Intermediate Partnership.

__________________

56.9%

L.P.

Interest

42.1% L.P.

Interest

1.98% General

Partner Interest

Alliance Holdings

GP , L.P.

(NASDAQ: AHGP)

59.9 million units outstanding

Alliance Resource

Partners, L.P.

(NASDAQ: ARLP)

36.6 million units outstanding

Public

Unitholders

Public

Unitholders

Management /

Others

(a)

2

(b)

IDRs

80.0%

L.P.

Interest

20.0%

L.P.

Interest

Distribution growth from ARLP benefits all unitholders

Strong alignment of interests throughout the Alliance Partnerships

Management owns significant interests directly in AHGP and indirectly in ARLP

4

th

largest eastern coal producer

operating 8 underground mining

complexes

712 million tons of reserves at

June 20, 2007 following

Providence reserve acquisition

6.1%

28.0%

$1,695

mm

$1,592

mm

1.77x

$2.16

$43.56

ARLP

$30.04

Unit Price (06/20/07):

$1,798

mm

Equity Market Cap:

Ownership Interests in ARLP

1.98% G.P. Interest

100% of Incentive Distribution Rights

15.5 mm ARLP common units

Asset Profile:

0.0%

Net Debt / Book Cap:

$1,798

mm

Enterprise Value:

$1.00

Distribution:

AHGP

NASDAQ Symbol:

0.0%

Net Debt / Enterprise Value:

1.00x

Total Unit Coverage:

Alliance Partnership Profiles

3

Strong operational and financial attributes of Alliance Resource

Partners, L.P.

Established history of operating and financial performance

Efficient, low-cost operator

Proven track record of executing growth strategy

Favorable long-term industry fundamentals

Experienced management team

Conservative balance sheet with significant liquidity

Visible inventory of growth prospects

Robust distribution coverage at ARLP provides stability and a catalyst for future

growth

Accelerated cash flow growth potential of Alliance Holdings GP, L.P. through

ownership of ARLP incentive distribution rights

Strong economic alignment throughout organization

Management owns significant interests in both ARLP and AHGP

Alliance Investment Highlights

4

Increase cash distributions to unitholders by actively assisting

ARLP in implementing its business strategy

AHGP supports ARLP by assisting with the identification, evaluation and pursuit of

growth opportunities

AHGP may provide ARLP access to AHGP’s capital resources to facilitate such growth

opportunities

Complementary Business Objectives

Alliance Holdings GP, L.P.

5

Create sustainable, capital efficient growth in distributable cash flow to

maximize growth in distributions to ARLP unitholders

Maximize existing asset base –

expand / extend current operations, continuous focus on  

productivity improvements

Build

on

strong

coal

platform

–

develop

new

mining

complexes,

enhance

customer

/

strategic relationships, pursue strategic opportunities

Alliance Resource Partners, L.P.

Alliance Resource Partners, L.P.

Overview

ARLP operates eight underground mining

complexes in all major eastern coal

producing regions

Diversified reserve position in the Illinois

Basin, Central Appalachia and Northern

Appalachia regions

Four significant organic development

projects identified in the growing Illinois

Basin and Northern Appalachia high sulfur

coal markets

Alliance Resource Partners, L.P. Snapshot

Unit Price at 06/20/07:

$43.56

Current Annualized Distribution:

$2.16

Current Yield:

4.96%

Equity Market Value:

~$1,592

mm

Enterprise Value:

~$1,695

mm

ARLP Trading Information

6

1

2

3

4

Pattiki Complex

River View Complex

Dotiki Complex

Mount Vernon

Transfer Terminal

5

6

7

8

Warrior Complex

Hopkins Complex

Gibson Complex

Pontiki Complex

9

10

11

12

MC Mining Complex

Tunnel Ridge Complex

Penn Ridge Complex

Mettiki Complex

Operations Summary

2006 Production

Northern

Appalachia

26%

Illinois Basin

68%

Central

Appalachia

6%

Reserves -

2006

7

2006 Summary (MM Tons)

Dotiki

4.7

86.7

Seminole; TVA

Warrior

4.5

13.9

Synfuel Solutions; LG&E

Pattiki

2.5

44.4

Corn Products; LG&E

Hopkins

1.6

63.5

Tampa Electric; TVA

River View

-

110.0

-

Gibson (North)

3.6

31.8

Duke Energy; Alabama Electric

Gibson (South)

0.0

82.7

-

Region Total

16.9

433.0

Central Appalachia

Pontiki

1.6

16.7

Progress; Ontario Power

MC Mining

1.9

20.7

Progress; NRG; East KY Power

Region Total

3.5

37.4

Northern Appalachia

Mettiki / Mettiki WV

3.3

36.3

Virginia Electric Power

Tunnel Ridge

-

70.5

-

Penn Ridge

-

56.7

Allegheny Energy

Region Total

3.3

163.5

Total Company

23.7

633.9

Including Providence Reserves (June 20, 2007)

712.0

Northern

Appalachia

14%

Illinois Basin

71%

Central

Appalachia

15%

Efficient Operator

Source: Public filings

EBITDA

margin

represents

EBITDA

/

Total

Revenues.

EBITDA

is

a

non-GAAP

measure.

See

reconciliation

slide

of

EBITDA

to

Net

Income.

ARLP is a low-cost, efficient coal operator, delivering sector-leading EBITDA

margins

__________________ 

8

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Alliance

Consol

Arch

Foundation

Peabody

Alpha

Massey

2003

2004

2005

2006

Focused on Safety

ARLP’s safety

performance has been

consistently better than

our industry peer group

Innovative use of

technology to improve

safety

State-of-the-art Leaky

Feeder mine

communication

systems installed at all

operations

Fiber optic based mine

monitoring systems

installed at all

operations

Currently installing

proprietary Miner

Tracking systems at

all operations

9

Alliance Coal, LLC

5.6

7.6

4.8

6.4

4.7

5.7

3.1

3.4

3.4

3.8

1.8

8.6

9.1

8.5

7.3

7.4

6.7

5.9

5.5

5.1

5.1

8.4

-65%

-23%

-36%

-25%

-43%

-16%

-35%

-54%

-42%

-37%

-27%

0

2

4

6

8

10

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

ARLP NFDL

Industry Average

% Below Industry Average

Safety Comparison

1997-2007

__________________ 

Note:

EBITDA

is

a

non-GAAP

measure

defined

as

income

before

net

interest

expense,

income

taxes

and

depreciation,

depletion

and

amortization.

See

reconciliation

slide

of

EBITDA

to

Net

Income.

(a) 

Based

on

the

midpoint

of

management

guidance.

Consistent Track Record of Growth at ARLP

19.2

20.4

22.3

23.7

25.0

10.0

15.0

20.0

25.0

2003

2004

2005

2006

2007E

Production

$523.2

$623.5

$799.6

$920.0

$1,000.0

$0.0

$200.0

$400.0

$600.0

$800.0

$1,000.0

2003

2004

2005

2006

2007E

Revenue

$110.3

$145.1

$193.6

$245.0

$253.4

$50.0

$100.0

$150.0

$200.0

$250.0

2003

2004

2005

2006

2007E

Cash Flow from Operations

$119.0

$147.9

$230.1

$250.0

$270.0

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

2003

2004

2005

2006

2007E

EBITDA

CAGR: 6.8%

CAGR: 17.6%

CAGR: 22.7%

CAGR: 23.1%

(a)

(a)

(a)

10

(a)

$1.05

$1.05

$1.05

$1.13

$1.25

$1.30

$1.30

$1.50

$1.50

$1.65

$1.65

$1.84

$1.84

$2.00

$2.00

$2.16

$2.16

$0.75

$1.00

$1.25

$1.50

$1.75

$2.00

$2.25

Continuous Unit Distribution Growth

ARLP has increased its quarterly distribution by 100% over the last four years

11

Leader in Distribution Growth

ARLP compares favorably to the broad MLP universe in terms of distribution

growth since the beginning of 2004

(a)

12

142%

92%

62%

57%

52%

50%

49%

49%

44%

38%

28%

24%

23%

22%

22%

22%

18%

3%

0%

__________________ 

(a)

Total distribution growth from distribution paid in the first quarter of 2004 to the latest announced distribution as of June 20, 2007.

(b)

Previously VLI

Alliance Holdings GP, L.P.

Overview

Note:

This graph shows the impact to AHGP as a result of ARLP raising or lowering its quarterly distribution from the current announced quarterly distribution of $0.54 per common unit ($2.16 annualized).

This

information

is

presented

for

illustrative

purposes

only

and

is not intended to be a prediction of future performance.

__________________ 

Incentive distribution rights provide AHGP unitholders with significant

financial leverage to ARLP distribution growth

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$1.84

$1.94

$2.04

$2.14

$2.24

$2.34

$2.44

$2.54

$2.64

Hypothetical ARLP Annual Distribution per L.P. Unit

Hypothetical

Distributions to

AHGP

AHGP Leverage to ARLP Growth

G.P.

Interest

IDRs

L.P.

Interest

Current ARLP

Distribution

($2.16 per unit)

13

ARLP Distribution

at AHGP IPO

($1.84 per unit)

Note:

Potential

one

year

ARLP

distribution

growth

over

current

annualized

distribution

level

of

$2.16

and

assuming

36.6

million

common

units

outstanding

at

ARLP

as

of

3/31/07.

__________________ 

Impact of ARLP Distribution Growth

14

AHGP Leverage to ARLP Distribution Growth

ARLP Distribution Growth

0%

10%

20%

30%

40%

0%

5%

10%

15%

20%

9.0%

27.0%

18.0%

36.0%

Benefits of Industry-Leading Distribution Coverage

ARLP’s coverage ratio is among the highest of publicly traded limited

partnerships in the energy sector

(a)

Benefits to AHGP investors include:

Greater potential for future distribution growth

Capital efficient financing for ARLP organic growth projects

Added stability across operating and pricing environments

(a)

Source: public filings. Coverage calculated as 2007E distributable cash flow (per Wall Street equity research) divided by current annualized cash distributions.

(b)

Coal MLP Index includes NRP and PVR. Coverage calculated as 2007E distributable cash flow (per Wall Street equity research) divided by current annualized cash distributions.

(c)

Pipeline MLP Index includes APL, BPL, BWP, XTEX, DPM, EEP, EPD, ETP, HLND, HEP, KMP, MMP, MWE, MMLP, NS, PAA, RGNC, SXL, TCLP, TLP, TPP, and WPZ. Coverage calculated as

2007E distributable cash flow (per Wall Street equity research) divided by current annualized cash distributions.

__________________ 

(b)

(c)

15

1.77x

1.16x

1.22x

ARLP

Coal MLP Index

Pipeline MLP Index

Value Inherent in Underlying Cash Flows

ARLP’s value

proposition becomes

clear through its current

cash available for

distribution

The impact is even more

pronounced at Alliance

Holdings GP due to the

IDR leverage

Implied Yields

(a)

7.55%

5.60%

6.62%

4.96%

5.11%

5.64%

3.33%

3.31%

6.54%

4.30%

1.50%

3.00%

4.50%

6.00%

7.50%

9.00%

ARLP

Coal MLPs

Pipeline

MLPs

AHGP

GP Holdcos

Distributed Yield

Assuming 1.00x Coverage at MLP

(a)

Yields as of 6/20/2007.

(b)

Coal MLPs Index includes NRP and PVR.

(c)

Pipeline MLPs includes APL, BPL, BWP, DPM, EEP, EPD, ETP, HLND, HEP, KMP, MMLP, MMP, MWE, NS, PAA, RGNC, SXL, TCLP, TLP, TPP, WPZ and XTEX.

(d)

GP Holdcos includes AHD, BGH, EPE, ETE, HPGP, MGG, NRGP, NSH, PVG and XTXI.

__________________ 

(c)

(d)

(b)

16

Positioned for Continued Growth

Recent Soft Spot Market Prices have been influenced by:

Generally mild weather

Short term increase in coal production in 2006

Higher than normal utility stockpiles

2007 Outlook

EIA

projects

60

million

ton

swing

in

2007

coal

demand/production

as

demand is projected to increase 2.1% while production is anticipated to

decline 3.1%.

(a)

For 2007, year to date electricity generation is up 3.6% from 2006 and

6.2% versus the five-year average

(b)

Total

U.S.

coal

production

for

2007

is

down

2.8%

ytd

while

eastern

coal

production

is

down

3.4%

ytd

compared

to

2006.

(b)

Current Market Conditions Expected to Improve

(a)

U.S.

Energy

Information-Short-Term-Energy-Outlook;--(b)-Stifel-Nicolaus-“Coal-Supply-and-Demand-Indicators”-June19,-2007

17

Growing Domestic Coal Demand

Coal’s

share

of

U.S.

Fuel

market

expected

to

increase from

49%

to

57%

by

2030

(a)

New coal-fired power plants expected to result in

120

MTPY

of

additional

coal

demand

by

2010

(a)

Btu conversion technologies could more than double

U.S.

coal

demand

by

2030

(b)

Constrained Domestic Coal Supply

Regulatory

environment

–

safety

and

permitting

Diminishing low cost reserves for Central App

Increasing capital requirements and operating costs

Increasing Global Coal Demand

Global economic expansion continues to drive

escalating demand for energy

Global

coal

demand

has

increased

by

23%

or

1

billion

tons

since

2001

(c)

Worldwide coal demand expected to nearly double

by 2030

(d)

Challenges for Competing Fuels

Nuclear utilization at full capacity

Non-competitive oil and natural gas prices

Continued challenges for LNG

Robust Long-Term Coal Industry Fundamentals

__________________ 

Sources: (a) Energy Information Administration, (b) National Coal Council, (c) BP Statistical Review of World Energy, (d) Department of Energy, Energy Information Administration,         

International Energy Outlook

18

Coal -

The Cornerstone of America’s Energy Future

19

Coal is a vital source of secure, affordable domestic energy

Coal is essential to U. S. energy security

Coal comprises 95% of U.S. energy reserves

Over 200 years of U.S. coal supply

Coal is the affordable fuel of choice

Over 50% of U.S. electricity generation is coal fired

Delivered cost of coal superior to alternatives

Coal -

$1.54/mmbtu  

Natural gas -

$8.21/mmbtu  

Petroleum -

$6.44/mmbtu

Source:  Energy Information Administration

ARLP Is Positioned for Future Sector Growth

Future growth potential for scrubber market bodes well for Alliance high sulfur

operations

Projected Eastern U.S.

Installed Scrubber Capacity

20

0

50

100

150

200

250

300

350

400

450

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

0

20

40

60

80

100

120

140

160

180

Scrubber Capacity

Gigawatts

Million Tons

(a)

12,500 Btu equivalent

Gigawatts

(b)

__________________ 

(a)

Assumption

used

to

convert

gigawatts

of

capacity

to

million

tons

of

coal:

9,600

Btu/kwhr

plant

heat

rate,

75%

plant

capacity

factor,

12,500

Btu

coal

(b)

Source:

The

McIlvaine

Company.

ARLP Well Positioned in Scrubber Markets

Approximately 676

million tons of “scrubber”

quality coal

21

Illinois Basin

Second largest producer in the basin

Strong reserve base of ~512

million tons of

high and medium sulfur coal

Currently accounts for ~74% of total

ARLP coal production

Northern Appalachia

Strong reserve base of ~164 million tons of

high and medium sulfur coal

Currently accounts for ~13% of total

ARLP coal production

River View

Commencing slope and shaft construction

Estimated

capital

cost

~

$130

-

$160 million

Estimated reserves ~ 110 million tons high sulfur coal

Production capacity ~ 3.1  -

4.6 million tons/year

Initial

production

in

2009

–

2010

Gibson South

Permitting in progress

Estimated

capital

cost

~

$100

-

$110 million

Estimated reserves ~ 83 million tons medium sulfur coal

Production capacity ~ 2.7  -

3.1 million tons/year

Initial

production

in

2009

–

2010

Large Inventory of Organic Growth Projects

Estimated

capital

costs

are

based

on

2006

dollars

and

exclude

capitalized

development

and

interest

expenses.

Timing

of

anticipated

initial-production-dependent-upon-obtaining-required-permits-and-customer-contracts

Penn Ridge

Initiating permitting process

Estimated

capital

cost

~

$165

-

$175 million

Estimated reserves ~ 57 million tons high sulfur coal

Production capacity ~ 5 million tons/year

Initial

production

in

2009

–

2011

22

__________________ 

Tunnel Ridge

Permitting in progress

Estimated

capital

cost

~

$195

-

$210 million

Estimated reserves ~ 70 million tons high sulfur coal

Production capacity ~ 6 million tons/year

Initial

production

in

2009

–

2010

Summary

Alliance Resource Partners, L.P.

Performance

Proven

track

record

of

superior

operating

and

financial

results

Clear

strategy

and

visible

inventory

of

growth

prospects

to exploit

favorable long-term coal fundamentals

Results

(a)

ARLP

has

outperformed

peers

over

the

last

four

years

in

both

distribution

growth

and

unit price appreciation

ARLP

has

delivered

a

289%

total

return

to

unitholders

since June 2003

Alliance Holding GP, L.P.

Opportunity

IDRs

provide leverage to distribution growth potential of ARLP

Results

(a)

AHGP

has

increased

distributions

35.1%

since

IPO

AHGP

unit

price

has

increased

20.1%

since

IPO,

43.0%

in

last

12

months

and

52.0%

YTD

Alliance Investment Take Aways

23

(a) As of June 20, 2007

(a) As of June 20, 2007

Appendix

ARLP EBITDA Reconciliation

EBITDA is defined as income before net interest expense, income taxes and depreciation, depletion and amortization. 

Management believes EBITDA is a useful indicator of its ability to meet debt service and capital expenditure

requirements and uses EBITDA as a measure of operating performance.  EBITDA should not be considered as an

alternative to net income, income from operations, cash flows from operating activities or any other measure of

financial performance presented in accordance with generally accepted accounting principles.  EBITDA is not intended

to represent cash flow and does not represent the measure of cash available for distribution.  The Partnership's method

of computing EBITDA may not be the same method used to compute similar measures reported by other companies, or

EBITDA may be computed differently by the Partnership in different contexts (i.e. public reporting versus computation

under financing agreements).  Estimate midpoint reflects the Partnership’s most recent guidance.

24

2007E

2003

2004

2005

2006

Mid-point

Cash flow provided by operating activities

110,312

$ 

145,055

$ 

193,618

$ 

250,923

$ 

253,400

$ 

Reclamation and mine closing

(1,341)

(1,622)

(1,918)

(2,101)

(2,200)

Coal inventory adjustment to market

(687)

(488)

(573)

(319)

-

Other

353

(255)

(2,057)

69

(300)

Net effect of changes in operating assets and liabilities

(8,240)

(12,405)

26,577

(9,429)

6,100

Interest expense

15,981

14,963

11,816

9,175

10,200

Income taxes

2,577

2,682

2,443

2,800

EBITDA

118,955

$ 

147,889

$ 

230,145

$ 

250,761

$ 

270,000

$ 

Depreciation, depletion and amortization

(52,495)

(53,664)

(55,637)

(66,489)

(86,800)

Interest expense

(15,981)

(14,963)

(11,816)

(9,175)

(10,200)

Income taxes

(2,577)

(2,641)

(2,682)

(2,443)

(2,800)

Cumulative effect of accounting change

-

-

-

112

-

Minority interest income

-

-

-

161

(200)

Net income

47,902

$   

76,621

$   

160,010

$ 

172,927

$ 

170,000

$ 

2,641

Alliance Resource Partners, L.P.

Alliance Holdings GP, L.P.

Wachovia Securities

Nantucket Equity Conference

June 26, 2007