What changed in this filing

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Item 1. Financial Statements

2025-11-07 compared with 2025-08-07 · 161 added, 82 removed, 677 unchanged (26% of the section changed)

4 unchanged sentences

(In thousands, except unit data)

September 30,

CURRENT ASSETS:

56 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

SALES AND OPERATING REVENUES:

12 unchanged sentences

Interest income

Net loss on equity method investments

Net income (loss) on equity method investments

Change in fair value of digital assets

13 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

OTHER COMPREHENSIVE INCOME:

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Change in unrealized gains on debt securities (2)

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME (LOSS)

COMPREHENSIVE INCOME

8 unchanged sentences

(In thousands)

Six Months Ended

Nine Months Ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES

51 unchanged sentences

Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of June 30, 2025 and December 31, 2024, the results of our operations and comprehensive income for the three and six months ended June 30, 2025 and 2024 and cash flows for the six months ended June 30, 2025 and 2024.

The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of September 30, 2025 and December 31, 2024, the results of our operations and comprehensive income for the three and nine months ended September 30, 2025 and 2024 and cash flows for the nine months ended September 30, 2025 and 2024.

All intercompany transactions and accounts have been eliminated.

16 unchanged sentences

Investments accounted for under the equity method are initially recorded at cost, and the difference between the basis of our investment and the underlying equity in the net assets of the entity at the investment date, if any, is amortized over the lives of the related assets that gave rise to the difference.

In the event our ownership requires a disproportionate sharing of income or loss, we use the hypothetical liquidation at book value (“HLBV”) method to determine the appropriate allocation of income or loss.

In the event our ownership requires the recording of income or loss such that our capital accounts reflect what we would receive in liquidation, we use the hypothetical liquidation at book value (“HLBV”) method to determine the appropriate allocation of income or loss.

Under the HLBV method, income or loss of the investee is allocated based on hypothetical amounts that each investor would be entitled to receive if the net assets held were liquidated at book value at the end of each period, adjusted for any contributions made and distributions received during the period.

We hold equity method investments in AllDale Minerals III, LP (“AllDale III”) and NGP Energy Transition, L.P.

(“NGP ET IV”).

We hold equity method investments in AllDale Minerals III, LP (“AllDale III”), NGP Energy Transition, L.P.

(“NGP ET IV”) and Gavin Generation Holdings A, LP (“Gavin Generation”).

See Note 3 – Variable Interest Entities for further discussion of our equity method investments.

10 unchanged sentences

ASU 2023-09 primarily requires enhanced disclosures to (1) disclose specific categories in the rate reconciliation, (2) disclose the amount of income taxes paid and expensed disaggregated by federal, state, and foreign taxes, with further disaggregation by individual jurisdictions if certain criteria are met, and (3) disclose income (loss) from continuing operations before income tax (benefit) disaggregated between domestic and foreign.

ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

ASU 2023-09 may be adopted on a prospective or retrospective basis and is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

We do not expect ASU 2023-09 to have a material effect on our results of operations, cash flows and financial condition but will result in the enhanced disclosures described above.

1 unchanged sentence

ASU 2024-03 requires the disclosure of additional information about specific expense categories in the notes to the financial statements to provide enhanced transparency into the nature and function of expenses.

ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted.

continue to evaluate the impact of ASU 2024-03 on our results of operations, cash flows, financial condition and related disclosures.

ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, on a prospective basis, with early

adoption permitted.

We continue to evaluate the impact of ASU 2024-03 on our results of operations, cash flows, financial condition and related disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”).

ASU 2025-06 improves the accounting for software development costs by removing references to software development stages so that the accounting is neutral to different software development methods.

ASU 2025-06 is effective for fiscal years beginning after December 15, 2027 and interim periods within those fiscal years, with early adoption permitted.

ASU 2025-06 can be applied on a prospective basis, a modified basis for in-process projects or a retrospective basis.

We are evaluating the impact of ASU 2025-06 on our results of operations, cash flows, financial condition and related disclosures.

VARIABLE INTEREST ENTITIES

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We own the managing member interest and a 96 % member interest in Cavalier Minerals.

Bluegrass Minerals Management, LLC (“Bluegrass Minerals”) owns a 4 % member interest in Cavalier Minerals and a profits interest which entitles it to receive distributions equal to 25 % of all distributions (including in liquidation) after all members have recovered their investment.

All members have recovered their investment and Bluegrass Minerals began receiving its profits interest distributions in late 2022.

We have concluded that AllDale I, AllDale II and Cavalier Minerals are variable interest entities (“VIEs”) which we consolidate as the primary beneficiary because we have the power to direct the activities that most significantly impact the economic performance of AllDale I, AllDale II and Cavalier Minerals in addition to having substantial equity ownership.

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The following table presents the carrying amounts and classification of AllDale I & II’s assets and liabilities included in our condensed consolidated balance sheets:

September 30,

Assets (liabilities):

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We are not the primary beneficiary of AllDale III because we do not have the power to direct the activities that most significantly impact AllDale III’s economic performance.

At June 30, 2025 and December 31, 2024, the carrying value of our investment in AllDale III was $ 21.6 million and $ 22.5 million, respectively.

At September 30, 2025 and December 31, 2024, the carrying value of our investment in AllDale III was $ 21.3 million and $ 22.5 million, respectively.

On June 2, 2022, we committed to purchase $ 25.0 million of limited partner interests in NGP ET IV, a private equity fund sponsored by NGP and focused on investments that are part of the global transition toward a lower carbon economy.

This commitment represents a 3.6 % interest in NGP ET IV.

As of June 30, 2025, we have funded $ 10.9 million of this commitment.

As of September 30, 2025, we have funded $ 11.2 million of this commitment.

We have concluded that NGP ET IV is a VIE that we do not consolidate.

1 unchanged sentence

We are not the primary beneficiary of NGP ET IV because we do not have the power to direct the activities that most significantly impact NGP ET IV’s economic performance.

At June 30, 2025 and December 31, 2024, the carrying value of our investment in NGP ET IV was $ 8.0 million and $ 8.8 million, respectively.

At September 30, 2025 and December 31, 2024, the carrying value of our investment in NGP ET IV was $ 10.7 million and $ 8.8 million, respectively.

Gavin Generation

In February 2025, we committed to invest up to $ 25.0 million of limited partner interests in Gavin Generation Holdings A, LP (“Gavin Generation”), which is sponsored by a private equity firm.

Gavin Generation intends to own, indirectly, an interest in a joint venture holding company formed with a third party that plans to indirectly acquire, own and operate a coal-fired power plant.

In February 2025, we committed to invest up to $ 25.0 million of limited partner interests in Gavin Generation, which is sponsored by a private equity firm.

Gavin Generation owns, indirectly, an interest in a joint venture holding company formed with a third party that indirectly owns and operates a coal-fired power plant.

This commitment represents an interest of 5.4 % in Gavin Generation (based on total commitments).

As of September 30, 2025, we have funded $ 22.1 million of this commitment.

Our investment in Gavin Generation is subject to a customary profit interest in favor of the general partner after the return of capital to the limited partners and the investment generating a specified internal rate of return in favor of the limited partners.

On August 6, 2025, we funded $ 22.1 million of our $ 25.0 million capital commitment.

We have concluded that Gavin Generation is a variable interest entity that we do not consolidate.

At September 30, 2025, the carrying value of our investment in Gavin Generation was $ 22.6 million.

We have concluded that Gavin Generation is a VIE that we do not consolidate.

Gavin Generation is structured as a limited partnership with the limited partners (1) not having the ability to remove the general partner and (2) not participating significantly in operational decisions.

3 unchanged sentences

(in thousands)

June 30, 2025

September 30, 2025

Recorded on a recurring basis:

15 unchanged sentences

Our contingent consideration liability is associated with our acquisition of our Hamilton County Coal, LLC (“Hamilton”) mine in 2015 wherein we agreed to pay the seller additional consideration for the acquisition if the average quarterly sales price exceeds a defined threshold price in any future quarters subject to a maximum of $ 110.0 million reduced for any payments made under an overriding royalty agreement with the sellers relating to mineral interests controlled by our Hamilton mine.

We have paid $ 14.1 million under this contingent consideration agreement and $ 0.3 million under the overriding royalty agreement as of June 30, 2025.

We have paid $ 15.5 million under this contingent consideration agreement and $ 0.5 million under the overriding royalty agreement as of September 30, 2025.

The fair value measurement of our debt securities is determined using a combination of market approaches and option-pricing models which utilize significant inputs not observable in active markets representing a Level 3 fair value measurement under the fair value hierarchy.

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We then calculate the present value of the estimated future payments.

The following table presents quantitative information about certain significant unobservable inputs used in the fair value measurement for our contingent consideration liability.

The following table presents quantitative information about certain significant unobservable inputs used in the fair value

measurement for our contingent consideration liability.

The use of significant unobservable inputs results in uncertainty as of the reporting date, as changes in these unobservable inputs could significantly raise or lower the estimated fair value.

2 unchanged sentences

(Average) (a)

June 30, 2025

September 30, 2025

Contingent Consideration

12 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

12 unchanged sentences

(Average) (a)

June 30, 2025

September 30, 2025

Debt securities

12 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

4 unchanged sentences

Inventories consist of the following:

September 30,

(in thousands)

4 unchanged sentences

Total inventories, net

The above balances reflect lower of cost or net realizable value adjustments to our coal inventories of $ 2.7 million and $ 24.6 million as of June 30, 2025 and December 31, 2024, respectively.

The adjustment as of June 30, 2025 is primarily a result of higher cost per ton at the MC Mining, LLC (“MC Mining”) mining complex as a result of lower production.

The adjustment as of December 31, 2024 is the result of lower coal sale prices and higher cost per ton primarily due to a longwall move at the Hamilton mining complex, lower production at Mettiki Coal, LLC and Mettiki Coal (WV), LLC (collectively “Mettiki”) and MC Mining mining complexes, and ongoing development activities at the Henderson County mine at our River View Coal, LLC (“River View”) mining complex.

The above balances reflect lower of cost or net realizable value adjustments to our coal inventories of $ 3.4 million and $ 24.6 million as of September 30, 2025 and December 31, 2024, respectively.

The adjustment as of September 30, 2025 is primarily a result of higher cost per ton at the Mettiki Coal, LLC and Mettiki Coal (WV), LLC (collectively “Mettiki”) mining complex due to lower production and challenging geological conditions in the longwall panel that reduced coal recovery.

The adjustment as of December 31, 2024 is the result of lower coal sale prices and higher cost per ton primarily due to a longwall move at the Hamilton mining complex, lower production at Mettiki and MC Mining, LLC (“MC Mining”) mining complexes, and ongoing development activities at the Henderson County mine at our River View Coal, LLC (“River View”) mining complex.

DIGITAL ASSETS

The following table sets forth our digital assets as shown on the condensed consolidated balance sheet:

June 30, 2025

September 30, 2025

December 31, 2024

4 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

1 unchanged sentence

Contributions

Net loss on equity method investments

Net income (loss) on equity method investments

Distributions received

Change in our share of net assets

Ending balance

Net loss on equity method investments represents our share of the income or loss of the equity method investments.

Net income (loss) on equity method investments represents our share of the income or loss of the equity method investments.

During 2022, we purchased shares of Series D Preferred Stock (“Series D Preferred Stock”) in Infinitum for $ 42.0 million.

Infinitum is a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators.

On September 8, 2023, we purchased $ 24.6 million of Series E Preferred Stock (“Series E Preferred Stock” and, together with the “Series D Preferred Stock,” the “Infinitum Preferred Stock”) in Infinitum.

On September 8, 2023, we purchased shares of Series E Preferred Stock (“Series E Preferred Stock” and, together with the “Series D Preferred Stock,” the “Infinitum Preferred Stock”) in Infinitum for $ 24.6 million.

The Infinitum Preferred Stock provides for non-cumulative dividends when and if declared by Infinitum’s board of directors.

3 unchanged sentences

Therefore, we use a measurement alternative other than fair value to account for our investment.

As a development-stage company, Infinitum periodically may initiate new funding rounds to raise capital.

Should Infinitum initiate a new round of funding at a valuation less than the carrying amount of our Infinitum Preferred Stock, an impairment in our investment could be necessary in future periods.

On August 22, 2023, we purchased shares of Series D Preferred Stock (the “Ascend Series D Preferred Stock”) in Ascend for $ 25.0 million which was accounted for as an equity investment without a readily determinable fair value because of the lack of quoted market prices.

3 unchanged sentences

We elected to participate in the recapitalization of Ascend with a $ 3.0 million commitment to purchase convertible debt.

We have funded $ 2.1 million of our commitment as of June 30, 2025.

We have funded $ 2.9 million of this commitment as of September 30, 2025.

The convertible notes provide for a redemption in two years for an amount equal to the greater of (a) a multiple of each stockholder’s investment in the convertible notes as determined by the level of participation or (b) the principal amount of each stockholder’s investment in the convertible notes plus an annual interest rate of 15 % .

4 unchanged sentences

The following table reflects our debt securities holdings:

June 30, 2025

September 30, 2025

Unrealized Gains (1)

(in thousands, except unit data)

(in thousands)

Debt Securities

(1) Unrealized gains in our debt securities are included in the Change in unrealized gains (losses) on debt securities line item within our condensed consolidated statements of comprehensive income.

As discussed in Note 4 – Fair Value Measurements, we determined the fair value of the debt securities was $ 13.0 million.

In the same models used to determine the value of the debt securities, we determined that the common stock we hold in Ascend as a result of the conversion had no value, resulting in an impairment charge of $ 25.0 million included in our condensed consolidated statements of income.

As discussed in Note 4 – Fair Value Measurements, we determined the fair value of the debt securities was $ 13.2 million as of September 30, 2025.

During the second quarter of 2025, we determined that the common stock we hold in Ascend as a result of the conversion had no value using the same models used to determine the fair value of our debt securities.

This resulted in an impairment charge of $ 25.0 million included in our condensed consolidated statements of income.

The $ 25.0 million impairment charge is a Level 3 fair value measurement and is included within our Other, Corporate and Elimination category.

The following table presents quantitative information about certain significant unobservable inputs used in this fair value measurement:

Valuation Technique(s)

Unobservable Input

(Average) (a)

Option-pricing approach methodology

Industry volatility

29.10 % - 70.86 % ( 49.98 %)

Estimated time to exit

2.0 - 4.0 ( 3.0 ) years

Income approach methodology

Forecasted future cash flow

$ 906.6 - $ 1,285.9 ($ 1,096.3 ) million

Cost of capital

11.25 % - 16.58 % ( 13.92 %)

(a) Averages represent the arithmetic average of the inputs and is not weighted by a relative fair value or notional amount .

LONG-TERM DEBT

2 unchanged sentences

Debt Issuance Costs

September 30,

(in thousands)

16 unchanged sentences

The applicable margin for borrowings under the Credit Agreement are determined by reference to the Consolidated Debt to Consolidated Cash Flow Ratio.

For borrowings under the Term Loan, we elected the one-month term rate, with applicable margin, which was 7.68 % as of June 30, 2025.

At June 30, 2025, we had $ 41.0 million of letters of credit outstanding with $ 384.0 million available for borrowing under the Revolving Credit Facility.

For borrowings under the Term Loan, we elected the one-month term rate, with applicable margin, which was 7.92 % as of September 30, 2025.

At September 30, 2025, we had $ 41.0 million of letters of credit outstanding with $ 384.0 million available for borrowing under the Revolving Credit Facility.

We incur an annual commitment fee of 0.50 % on the undrawn portion of the Revolving Credit Facility.

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The debt of Alliance Coal to cash flow ratio, consolidated debt of Alliance Coal and the Intermediate Partnership to cash flow ratio, and interest coverage ratio were 0.15 to 1.0, 0.97

to 1.0 and 35.07 to 1.0, respectively, for the trailing twelve months ended June 30, 2025.

We were in compliance with the covenants of the Credit Agreement as of June 30, 2025 and anticipate remaining in compliance with the covenants.

to 1.0 and 36.97 to 1.0, respectively, for the trailing twelve months ended September 30, 2025.

We were in compliance with the covenants of the Credit Agreement as of September 30, 2025 and anticipate remaining in compliance with the covenants.

8.625% Senior Notes due 2029

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The Securitization Facility bears interest based on a short-term bank yield index.

On June 30, 2025, we had $ 14.8 million of letters of credit outstanding with $ 60.2 million available for borrowing under the Securitization Facility.

On September 30, 2025, we had $11.7 million of letters of credit outstanding with $63.3 million available for borrowing under the Securitization Facility.

The agreement governing the Securitization Facility contains customary terms and conditions, including limitations with regards to certain customer credit ratings.

6 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

11 unchanged sentences

Our workers’ compensation liability above is presented on a gross basis and does not include our expected receivables from our insurance policy.

Our receivables for traumatic injury claims under this policy as of June 30, 2025 are $ 3.7 million and are included in Other long-term assets on our condensed consolidated balance sheet.

Our receivables for traumatic injury claims under this policy as of September 30, 2025 are $ 3.7 million and are included in Other long-term assets on our condensed consolidated balance sheet.

Certain of our mine operating entities are liable under state statutes and the Federal Coal Mine Health and Safety Act of 1969, as amended, to pay pneumoconiosis, or black lung, benefits to eligible employees and former employees and their dependents.

1 unchanged sentence

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

5 unchanged sentences

Eligible employees at certain of our mining operations participate in a defined benefit plan (the “Pension Plan”) that we sponsor.

The Pension Plan is currently closed to new applicants and participants in the Pension Plan are no longer

receiving benefit accruals for service.

The Pension Plan is currently closed to new applicants and participants in the Pension Plan are no longer receiving benefit accruals for service.

The benefit formula for the Pension Plan is a fixed dollar unit based on years of service.

1 unchanged sentence

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

11 unchanged sentences

Following preliminary approval of the settlement on July 10, 2025, we paid $ 15.3 million into an escrow account.

A hearing in which the court will consider final approval of the settlement is scheduled for the fourth quarter of 2025.

On October 23, 2025, a hearing was held, at which the court considered final approval of the settlement.

On November 3, 2025, the court entered an order approving the parties’ settlement, subject to plaintiff’s counsel submitting an updated motion for costs and the settlement administrator’s proper and timely administration of the settlement funds.

We believe our ultimate exposure, if any should litigation resume, will not be material to our results of operations or financial position;

however, if our current belief as to the merit of the claims is not upheld if litigation were to resume, it is reasonably possible that the ultimate resolution of these matters could result in a potential loss that may be material to our results of operations.

however, if our current belief as to the merit of the claims is not upheld and if litigation were to resume, it is reasonably possible that the ultimate resolution of these matters could result in a potential loss that may be material to our results of operations.

We also have various other lawsuits, claims and regulatory proceedings incidental to our business that are pending against the ARLP Partnership.

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August 14, 2025

(1) On July 28, 2025, we declared this quarterly distribution payable on August 14, 2025 to all unitholders of record as of August 7, 2025.

November 14, 2025 (1)

(1) On October 27, 2025, we declared this quarterly distribution payable on November 14, 2025 to all unitholders of record as of November 7, 2025.

Change in Partners’ Capital

The following tables present the quarterly change in Partners' Capital for the three and six months ended June 30, 2025 and 2024:

The following tables present the quarterly change in Partners' Capital for the nine months ended September 30, 2025 and 2024:

Limited Partner

22 unchanged sentences

Balance at June 30, 2025

Comprehensive income:

Other comprehensive income

Total comprehensive income

Common unit-based compensation

Distributions on deferred common unit-based compensation

Distributions from consolidated company to noncontrolling interest

Distributions to Partners

Balance at September 30, 2025

Limited Partner

23 unchanged sentences

Balance at June 30, 2024

Comprehensive income:

Actuarially determined long-term liability adjustments

Total comprehensive income

Settlement of deferred compensation plans

Common unit-based compensation

Distributions on deferred common unit-based compensation

Distributions from consolidated company to noncontrolling interest

Distributions to Partners

Balance at September 30, 2024

COMMON UNIT-BASED COMPENSATION PLAN

6 unchanged sentences

Non-vested grants at January 1, 2025

Non-vested grants at June 30, 2025

Non-vested grants at September 30, 2025

(1) The restricted units granted during 2025 have certain minimum-value guarantees per unit, regardless of whether the awards vest.

(2) During the six months ended June 30, 2025, we issued 366,043 unrestricted common units to the LTIP participants.

(2) During the nine months ended September 30, 2025, we issued 366,043 unrestricted common units to the LTIP participants.

The remaining vested units were withheld to satisfy tax withholdings.

LTIP expense for grants of restricted units was $ 2.3 million for each of the three months ended June 30, 2025 and 2024 and $ 4.2 million and $ 4.4 million for the six months ended June 30, 2025 and 2024, respectively.

The total obligation associated with LTIP grants of restricted units as of June 30, 2025 was $ 12.6 million and is included in the partners’ capital Limited partners-common unitholders line item on our condensed consolidated balance sheets.

As of June 30, 2025, there was $ 14.5 million in total unrecognized compensation expense related to the non-vested LTIP restricted unit grants that are expected to vest.

LTIP expense for grants of restricted units was $ 2.3 million and $ 2.4 million for the three months ended September 30, 2025 and 2024, respectively, and $ 6.5 million and $ 6.8 million for the nine months ended September 30, 2025 and 2024, respectively.

The total obligation associated with LTIP grants of restricted units as of September 30, 2025 was $ 14.9 million and is included in the partners’ capital Limited partners-common unitholders line item on our condensed consolidated balance sheets.

As of September 30, 2025, there was $ 12.1 million in total unrecognized compensation expense related to the non-vested LTIP restricted unit grants that are expected to vest.

That expense is expected to be recognized over a weighted-average period of 1.2 years.

4 unchanged sentences

(in thousands)

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Oil & gas royalties

3 unchanged sentences

Total revenues

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Oil & gas royalties

3 unchanged sentences

Total revenues

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Oil & gas royalties

3 unchanged sentences

Total revenues

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Oil & gas royalties

5 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

1 unchanged sentence

Ending balance

The following table illustrates the amount of our transaction price for all current coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied as of June 30, 2025 and disaggregated by segment and contract duration.

The following table illustrates the amount of our transaction price for all current coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied as of September 30, 2025 and disaggregated by segment and contract duration.

(in thousands)

2 unchanged sentences

Total coal revenues

(1) Coal revenues generally consists of consolidated revenues excluding our Oil & Gas Royalties segment as well as intercompany revenues from our Coal Royalties segment .

Components of income tax expense are as follows:

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

Income tax expense

The effective income tax rates for our income tax expense for the three and six months ended June 30, 2025 and 2024 are less than the federal statutory rate, primarily due to the portion of income not subject to income taxes.

The effective income tax rates for our income tax expense for the three and nine months ended September 30, 2025 and 2024 are less than the federal statutory rate, primarily due to the portion of income not subject to income taxes.

Our 2020 through 2024 tax years remain open to examination by tax authorities, and lower-tier partnership income tax returns for the tax years ended December 31, 2020 and 2021 are being audited by the Internal Revenue Service.

7 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands, except per unit data)

7 unchanged sentences

Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive.

For the three and six months ended June 30, 2025, participating securities of 605 and 715 , respectively, were considered anti-dilutive under the treasury stock method.

For the three and six months ended June 30, 2024, participating securities of 1,726 and 1,945 , respectively, were considered anti-dilutive under the treasury stock method .

For the three and nine months ended September 30, 2025, participating securities of 665 and 703 , respectively, were considered anti-dilutive under the treasury stock method.

For the three and nine months ended September 30, 2024, participating securities of 1,863 and 1,915 , respectively, were considered anti-dilutive under the treasury stock method .

SEGMENT INFORMATION

13 unchanged sentences

The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by Alliance Minerals through its consolidated subsidiaries as well as equity interests held in AllDale III (Note 3 – Variable Interest Entities).

The Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties that are (a) leased to certain of our mining complexes in both the Illinois Basin Coal Operations and Appalachia Coal Operations reportable segments or (b) located near our operations and external mining operations.

The Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties that are (a) leased to certain of our mining complexes in the Illinois Basin and Appalachia Basin or (b) located near our operations and external mining operations.

Other, Corporate and Elimination includes marketing and administrative activities, certain of our subsidiaries, primarily consisting of Matrix Design Group, LLC, its subsidiaries, and Alliance Design Group, LLC (collectively referred to as "Matrix Group"), Bitiki KY, LLC, which holds our crypto-mining activities (see Note 6 – Digital Assets), our non oil & gas equity investments (see Note 3 – Variable Interest Entities and Note 7 – Investments), Wildcat Insurance, LLC which assists the ARLP Partnership with its insurance requirements, AROP Funding and Alliance Finance (both discussed in Note 8 – Long-Term Debt).

3 unchanged sentences

(in thousands)

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Revenues - Outside

6 unchanged sentences

Capital expenditures (6)

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Revenues - Outside

6 unchanged sentences

Capital expenditures (6)

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Revenues - Outside

7 unchanged sentences

Capital expenditures (6)

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Revenues - Outside

9 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

17 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

12 unchanged sentences

(5) The following is a reconciliation of our total segment assets to total consolidated assets:

September 30,

(in thousands)

2 unchanged sentences

Total consolidated assets

(6) Capital expenditures excludes $ 2.7 million paid towards oil & gas reserve acquisitions for the six months ended June 30, 2025 and $ 2.9 million and $ 4.7 million paid towards oil & gas reserve acquisitions for the three and six months ended June 30, 2024, respectively.

(6) Capital expenditures excludes $ 0.8 million and $ 3.5 million paid towards oil & gas reserve acquisitions for the three and nine months ended September 30, 2025, respectively and $ 10.5 million and $ 15.2 million paid towards oil & gas reserve acquisitions for the three and nine months ended September 30, 2024, respectively.

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements