What changed in this filing

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Item 1. Financial Statements

2026-05-08 compared with 2025-11-07 · 178 added, 320 removed, 518 unchanged (49% of the section changed)

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(In thousands, except unit data)

September 30,

CURRENT ASSETS:

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Equity securities

Debt securities

Operating lease right-of-use assets

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Three Months Ended

Nine Months Ended

September 30,

SALES AND OPERATING REVENUES:

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Depreciation, depletion and amortization

Asset impairments

Total operating expenses

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Change in fair value of digital assets

Impairment loss on investments - (Note 7)

Other income (expense)

INCOME BEFORE INCOME TAXES

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Three Months Ended

Nine Months Ended

September 30,

OTHER COMPREHENSIVE INCOME:

OTHER COMPREHENSIVE INCOME (LOSS):

Defined benefit pension plan

Amortization of prior service cost (1)

Amortization of net actuarial loss (1)

Total defined benefit pension plan adjustments

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Amortization of net actuarial loss (1)

Other adjustments (2)

Total pneumoconiosis benefits adjustments

Foreign currency translation adjustment

Change in unrealized gains on debt securities (2)

OTHER COMPREHENSIVE INCOME (LOSS)

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(1) Amortization of prior service cost and net actuarial loss is included in the computation of net periodic benefit cost (credit) (see Notes 11 and 12 for additional details).

(2) For more information on the change in unrealized gains please see Note 4.

(2) For more information on other adjustments please see Note 11.

See notes to condensed consolidated financial statements.

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(In thousands)

Nine Months Ended

September 30,

Three Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES

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Contributions to equity method investments

Purchase of debt securities

Oil & gas reserve business combinations

Oil & gas reserve asset acquisitions

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Payments under securitization facility

Proceeds from equipment financings

Payments on equipment financings

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Payments on long-term debt

Payment of debt issuance costs

Payments for tax withholdings related to settlements under deferred compensation plan

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CASH AND CASH EQUIVALENTS AT END OF PERIOD

SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid for interest

Cash paid for income taxes

SUPPLEMENTAL NON-CASH ACTIVITY:

Accounts payable for purchase of property, plant and equipment

Change in property, plant and equipment for reclamation assets

Right-of-use assets acquired by operating lease

Market value of common units issued under deferred compensation plans before tax withholding requirements

Market value of common units issued under deferred compensation plan before tax withholding requirements

See notes to condensed consolidated financial statements.

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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 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.

The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of March 31, 2026 and December 31, 2025 and the results of our operations, comprehensive income and cash flows for the three months ended March 31, 2026 and 2025.

All intercompany transactions and accounts have been eliminated.

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Actual results could differ from those estimates.

Our investments and ownership interests in equity securities without readily determinable fair values in entities in which we do not have a controlling financial interest or significant influence are accounted for using a measurement alternative other than fair value.

The measurement alternative is historical cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same entity.

Distributions received on those investments are recorded as income unless those distributions are considered a return on investment, in which case the historical cost is reduced.

We account for our ownership interests in Infinitum Electric, Inc.

(“Infinitum”) and Ascend Elements, Inc.

(“Ascend”) as equity securities without readily determinable fair values.

See Note 7 – Investments for further discussion of these investments.

Our investments and ownership interests in entities in which we do not have a controlling financial interest are accounted for under the equity method of accounting if we have the ability to exercise significant influence over the entity.

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 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”), 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.

We review our investments for impairment whenever events or changes in circumstances indicate a loss in the value of the investment may be other-than-temporary.

Our investments in debt securities classified as available-for-sale are reported at fair value with unrealized gains and losses included in other comprehensive income in partners’ capital.

Credit losses, if any, are recorded as an expense.

Upon maturity or conversion, any associated unrealized gain or loss will be reclassified from other comprehensive income to our condensed consolidated income statement as a realized gain or loss.

We hold debt securities in Ascend.

See Note 7 – Investments for further discussion of this investment.

NEW ACCOUNTING STANDARDS

New Accounting Standards Issued and Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures (“ASU 2023-09”).

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 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.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40 ) (“ASU 2024-03”).

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40 ) (“ASU 2024-03”).

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, on a prospective basis, with early

adoption permitted.

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.

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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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Accrued taxes other than income taxes

AllDale III owns oil & gas mineral interests in areas around the oil & gas mineral interests we own.

AllDale Minerals III, LP (“AllDale III”) owns oil & gas mineral interests in areas around the oil & gas mineral interests we own.

Alliance Minerals owns a 13.9 % limited partner interest in AllDale III.

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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 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.

At March 31, 2026 and December 31, 2025, the carrying value of our investment in AllDale III was $ 20.5 million and $ 21.0 million, respectively.

We have committed to purchase $ 25.0 million of limited partner interests in NGP Energy Transition, L.P.

(“NGP ET IV”), a private equity fund focused on investments that are part of the energy transition.

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

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

As of March 31, 2026, we have $ 14.0 million of this commitment remaining.

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

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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 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.

At March 31, 2026 and December 31, 2025, the carrying value of our investment in NGP ET IV was $ 12.5 million and $ 13.4 million, respectively.

Gavin Generation

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.

We have committed to invest up to $ 25.0 million of limited partner interests in Gavin Generation Holdings A, LP (“Gavin Generation”).

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.

As of March 31, 2026, we have $ 7.7 million of this commitment remaining.

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.

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.

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

At March 31, 2026 and December 31, 2025, the carrying value of our investment in Gavin Generation was $ 38.0 million and $ 35.2 million, respectively.

Primavera Acquisition

On January 22, 2026 (the “Primavera Acquisition Date”), we acquired 177 oil & gas net royalty acres in the Delaware Basin from Primavera Resources, Inc.

(“Primavera”) for a cash purchase price of $ 5.4 million which was funded with cash on hand (“Primavera Acquisition”).

This acquisition further enhanced our ownership position in the Permian Basin.

Because the mineral interests acquired in the Primavera Acquisition include royalty interests in both developed properties and undeveloped properties with different risk profiles, we have determined that the acquisition should be accounted for as a business combination and the underlying assets should be recorded at fair value as of the Primavera Acquisition Date on our condensed consolidated balance sheet.

The following table summarizes the fair value allocation of assets acquired as of the Primavera Acquisition Date:

(in thousands)

Mineral interests in proved properties

Mineral interests in unproved properties

The fair value of the mineral interests was determined using an income approach consisting of a discounted cash flow model.

The assumptions used in the discounted cash flow model included estimated production, projected cash flows, forward oil & gas prices and risk adjusted discount rates.

Certain assumptions used are not observable in active markets;

therefore, the fair value measurements represent Level 3 fair value measurements.

The amounts of revenue and earnings from the mineral interests acquired in the Primavera Acquisition included in our condensed consolidated statements of income from the Primavera Acquisition Date through March 31, 2026 are immaterial.

The following represents our supplemental pro forma revenues and net income for the three months ended March 31, 2026 and 2025 as if the mineral interests acquired in the Primavera Acquisition had been included in our consolidated results since January 1, 2025.

These amounts have been calculated after applying our accounting policies.

Three Months Ended

(in thousands)

Cole Acquisition

On March 12, 2026 (the “Cole Acquisition Date”), we acquired 397 oil & gas net royalty acres in the Midland Basin from S.

Cole Holdings, LLC and other various sellers (“Cole”) for a cash purchase price of $ 9.1 million which was funded with cash on hand (“Cole Acquisition”).

This acquisition further enhanced our ownership position in the Permian Basin.

Because the mineral interests acquired in the Cole Acquisition include royalty interests in both developed properties and undeveloped properties with different risk profiles, we have determined that the acquisition should be accounted for as a business combination and the underlying assets should be recorded at fair value as of the Cole Acquisition Date on our condensed consolidated balance sheet.

The following table summarizes the fair value allocation of assets acquired as of the Cole Acquisition Date:

(in thousands)

Mineral interests in proved properties

Mineral interests in unproved properties

The fair value of the mineral interests was determined using an income approach consisting of a discounted cash flow model.

The assumptions used in the discounted cash flow model included estimated production, projected cash flows, forward oil & gas prices and risk adjusted discount rates.

Certain assumptions used are not observable in active markets;

therefore, the fair value measurements represent Level 3 fair value measurements.

The amounts of revenue and earnings from the mineral interests acquired in the Cole Acquisition included in our condensed consolidated statements of income from the Cole Acquisition Date through March 31, 2026 are immaterial.

The following represents our supplemental pro forma revenues and net income for the three months ended March 31, 2026 and 2025 as if the mineral interests acquired in the Cole Acquisition had been included in our consolidated results since January 1, 2025.

These amounts have been calculated after applying our accounting policies.

Three Months Ended

(in thousands)

FAIR VALUE MEASUREMENTS

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(in thousands)

September 30, 2025

March 31, 2026

Recorded on a recurring basis:

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Contingent consideration

Debt securities

Additional disclosures:

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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 $ 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.

See Note 7 – Investments for additional information on our debt securities.

We have paid $ 16.6 million under this contingent consideration agreement and $ 0.9 million under the overriding royalty agreement as of March 31, 2026.

The estimated fair value of our long-term debt, including current maturities, is based on interest rates that we believe are currently available to us in active markets for issuance of debt with similar terms and remaining maturities.

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Contingent Consideration

Our option approach methodology simulation for contingent consideration generates an expected payment for each quarter in Hamilton’s mine life by using proprietary internal estimates of our uncommitted coal sales prices and generating a simulated uncommitted coal sales price by applying unobservable inputs through a million simulations.

Our option approach methodology simulation for contingent consideration generates an expected payment for each quarter in Hamilton’s expected mine life by using proprietary internal estimates of our uncommitted coal sales prices and generating a simulated uncommitted coal sales price by applying unobservable inputs through a million simulations.

This simulated coal sales price is then used in a calculation of the expected future payments using our proprietary committed coal sales prices and production for each quarter.

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)

September 30, 2025

March 31, 2026

Contingent Consideration

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Three Months Ended

Nine Months Ended

September 30,

(in thousands)

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Ending balance

(1) Noncash changes in the fair value of our continent consideration liability are included in the Operating expenses (excluding depreciation, depletion and amortization) line item within our condensed consolidated statements of income.

Debt Securities

The fair value of our debt securities is determined using a combination of market approaches and option-pricing models.

The underlying enterprise value is estimated using income and market approaches which utilize discounted cash flows and market participant values for assets in hypothetical sales scenarios.

The enterprise value is then utilized in market approach models and option-pricing models taking into account the rights and preferences of the convertible notes, expected exit scenarios, and volatility associated with such outcomes to arrive at a fair value.

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

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.

Valuation Technique(s)

Unobservable Input

(Average) (a)

September 30, 2025

Debt securities

Option-pricing approach methodology

Industry volatility

38.1 % – 64.8 % ( 48.0 %)

Estimated time to exit

1.75 - 3.75 ( 2.75 ) years

Income approach methodology

Forecasted future cash flow

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

Cost of capital

14.67 % - 19.51 % ( 16.58 %)

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

The following table represents changes in our debt securities:

Three Months Ended

Nine Months Ended

September 30,

(in thousands)

Beginning balance

Noncash changes in fair value (1)

Ending balance

(1) Noncash changes in the fair value of 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.

(1) Noncash changes in the fair value of our contingent consideration liability are included in the Operating expenses (excluding depreciation, depletion and amortization) line item within our consolidated statements of income.

Inventories consist of the following:

September 30,

(in thousands)

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Total inventories, net

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.

The above coal inventory balances reflect lower of cost or net realizable value adjustments of $ 21.3 million and $ 4.9 million as of March 31, 2026 and December 31, 2025, respectively.

The adjustment as of March 31, 2026 is primarily a result of higher cost per ton at the Hamilton mining complex due to lower production resulting from the planned extended longwall move, and at the Mettiki Coal, LLC and Mettiki Coal (WV), LLC (collectively “Mettiki”) mining complex due to reduced production following the decision to cease longwall production.

The adjustment as of December 31, 2025 is the result of higher cost per ton at the Mettiki mining complex due to lower production and challenging geological conditions in the longwall panel that reduced coal recovery.

DIGITAL ASSETS

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

September 30, 2025

March 31, 2026

December 31, 2025

1 unchanged sentence

(in thousands, except unit data)

LONG-LIVED ASSET IMPAIRMENT

On January 29, 2026, we announced our decision to cease longwall production at our Mettiki mining complex, which is primarily included in our Appalachia Coal Operations reportable segment.

We concluded that as a result of this decision, along with uncertainty regarding future longwall production resumption and our evaluation of potential operation scenarios, we would not recover the carrying value of Mettiki’s assets.

Accordingly, we adjusted the carrying value of

Mettiki’s assets from $ 95.3 million to its fair value of $ 57.5 million resulting in an impairment charge of $ 37.8 million.

We continue to evaluate options concerning the mine’s future.

The fair value of the impaired assets was determined using an income approach, which represents a Level 3 fair value measurement under the fair value hierarchy.

Our analysis considered two operating scenarios for Mettiki and reflected a probability-weighted discounted cash flow model based on these scenarios.

Significant assumptions in the model included proprietary internal estimates of expected future sales volumes, realized coal sales prices, operating costs, capital requirements, the timing of cessation of operations, and a risk-adjusted discount rate.

The following table presents quantitative information about certain significant unobservable inputs used in our nonrecurring fair value measurement.

The use of significant unobservable inputs results in uncertainty as changes in these unobservable inputs could significantly impact the estimated fair value.

Valuation Technique(s)

Unobservable Input

(Average) (a)

Mettiki asset group

Income approach methodology

Discount rate

5.98 % - 6.93 % ( 6.46 %)

Low case scenario probability

70.0 % - 95.0 % ( 82.5 %)

High case scenario probability

5.0 % - 30.0 % ( 17.5 %)

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

Equity Method Investments

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Three Months Ended

Nine Months Ended

September 30,

(in thousands)

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Distributions received

Change in our share of net assets

Ending balance

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.

As of March 31, 2026 we have an $ 86.4 million investment in Infinitum Electric, Inc.

(“Infinitum”).

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

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.

Each share of Infinitum Preferred Stock is convertible, at any time, at our option, into shares of common stock of Infinitum.

We account for our ownership interest in Infinitum as an equity investment without a readily determinable fair value.

Absent an observable price change, it is not practicable to estimate the fair value of our investment in Infinitum because of the lack of a quoted market price for our ownership interests.

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

During 2023, we purchased shares of Series E Preferred Stock in Infinitum for $ 24.6 million at a slightly higher price per share than our Series D Preferred Stock, resulting in an increase of $ 1.0 million in the carrying value of our investment.

On December 31, 2025, we purchased shares of Series F Preferred Stock (together with the Series D and Series E Preferred Stock, the “Infinitum Preferred Stock”) in Infinitum for $ 14.9 million.

The Infinitum Preferred Stock provides for non-cumulative dividends when and if declared by Infinitum’s board of directors and is convertible, at any time, at our option, into shares of common stock of Infinitum.

We account for our investment in Infinitum as an equity investment without a readily determinable fair value.

Absent an observable price change, it is not practicable to estimate the fair value of our investment in Infinitum because of the lack of a quoted market

price for our ownership interests.

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

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.

Ascend is a U.S.-based manufacturer and recycler of sustainable, engineered battery materials for electric vehicles.

In June 2025, Ascend raised new capital through a convertible note financing.

Under the terms of the convertible note and the resulting recapitalization, all existing shares of each outstanding series of preferred stock were converted into common stock on a 1 :1 basis for stockholders that participated in the convertible note purchase, or on a 3 :1 basis if they did not participate.

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

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 % .

Based on our level of participation, our convertible notes provide for a multiple of 12 times our funded commitment at redemption.

We concluded that these convertible notes represent available-for-sale debt securities.

We do not intend to sell our debt securities (which are subject to certain transfer restrictions) and believe it is likely that we will not be required to sell them before redemption.

As a result of our participation in the recapitalization, our shares of Ascend Series D Preferred Stock converted into common stock on a 1 :1 basis.

The following table reflects our debt securities holdings:

September 30, 2025

Unrealized Gains (1)

(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 $ 13.2 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 .

Infinitum completed its Series F Preferred Stock funding round in the first quarter of 2026 and finalized the value per share of this issuance.

In addition to the shares of Series F Preferred Stock we purchased, we also received additional Series D and Series E Preferred Stock in accordance with anti-dilution provisions designed to maintain our initial investment value in those issuances.

Some of the additional shares we received under the anti-dilution provisions had a share price that was lower than the Series F Preferred Stock.

Infinitum's Series F Preferred Stock issuance represents an observable price change in an orderly transaction for an investment that is similar to our Series D and Series E Preferred Stock investments.

We therefore remeasured our shares to reflect the Series F Preferred Stock share price increasing the carrying value of our investments by $ 3.8 million.

We used the Series F Preferred Stock issuance price per share without adjustment to remeasure investments since the rights and obligations of the securities are substantially the same.

This remeasurement represents a Level 2 fair value measurement as it is based on a quoted price for a similar security in a market that is not active.

We have made $ 4.8 million cumulative upward fair value adjustments to the carrying amount of our investments in Infinitum since our initial investment in 2022.

LONG-TERM DEBT

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Debt Issuance Costs

September 30,

(in thousands)

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February 2024 equipment financing

Installment purchase arrangement

Less current maturities

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Borrowings under the Credit Agreement bear interest, at our option, at either (i) an adjusted one-month, three-month or six-month term rate based on the secured overnight financing rate published by the Federal Reserve Bank of New York, plus the applicable margin or (ii) the base rate plus the applicable margin.

The base rate is the highest of (i) the Overnight Bank Funding Rate plus 0.50 %, (ii) the Administrative Agent’s prime rate, and (iii) the Daily Simple Secured Overnight Financing Rate plus 100 basis points.

The base rate is the highest of (i) the Overnight Bank Funding Rate

plus 0.50 %, (ii) the Administrative Agent’s prime rate, and (iii) the Daily Simple Secured Overnight Financing Rate plus 100 basis points.

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

For borrowings under the Term Loan, we elected the one-month term rate, with applicable margin, which was 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.

For borrowings under the Term Loan, we elected the one-month term rate, with applicable margin, which was 7.02 % as of March 31, 2026.

At March 31, 2026, 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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In each case, these restrictions are subject to various exceptions.

In addition, restrictions apply to cash distributions by Alliance Coal to the Intermediate Partnership if such distribution would result in exceeding the debt of Alliance Coal to cash flow ratio (as determined in the Credit Agreement) being more than 1.0 to 1.0 or in Alliance Coal having liquidity of less than $ 200 million.

In addition, restrictions apply to cash distributions by Alliance Coal to the Intermediate Partnership if such distribution would result in the debt of Alliance Coal to cash flow ratio (as determined in the Credit Agreement) being more than 1.0 to 1.0 or in Alliance Coal having liquidity of less than $ 200 million.

The Credit Agreement requires us to maintain (a) a debt of Alliance Coal to cash flow ratio of not more than 1.5 to 1.0, (b) a consolidated debt of Alliance Coal and the Intermediate Partnership to cash flow ratio of not more than 2.5 to 1.0 and (c) an interest coverage ratio of not less than 3.0 to 1.0, in each case, during the four most recently ended fiscal quarters.

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

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.

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 0.20 to 1.0, 1.00 to 1.0 and 42.20 to 1.0, respectively, for the trailing twelve months ended March 31, 2026.

We were in compliance with the covenants of the Credit Agreement as of March 31, 2026 and anticipate remaining in compliance with the covenants.

8.625% Senior Notes due 2029

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Accounts Receivable Securitization

Certain direct and indirect wholly owned subsidiaries of our Intermediate Partnership are party to a $ 75.0 million accounts receivable securitization facility (“Securitization Facility”) which matures in January 2026.

Certain direct and indirect wholly owned subsidiaries of our Intermediate Partnership are party to a $ 75.0 million accounts receivable securitization facility (“Securitization Facility”).

Under the Securitization Facility, certain subsidiaries sell certain trade receivables on an ongoing basis to our Intermediate Partnership, which then sells the trade receivables to AROP Funding, LLC (“AROP Funding”), a wholly owned bankruptcy-remote special purpose subsidiary of our Intermediate Partnership, which in turn borrows on a revolving basis up to $ 75.0 million secured by the trade receivables.

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

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.

On March 31, 2026, we had $ 11.7 million of letters of credit outstanding with $ 18.3 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.

In January 2026, we extended the term of the Securitization Facility to January 2027.

At March 31, 2026, we had a $ 45.0 million outstanding balance under the Securitization Facility.

February 2024 Equipment Financing

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Upon maturity, the equipment will revert to Alliance Coal.

Craft Foundation Installment Purchase Arrangement

On January 29, 2026, Alliance Resource Properties, as borrower, entered into an installment purchase arrangement with The Joseph W.

Craft III Foundation, an entity controlled by Mr.

Craft, for $ 5.9 million pursuant to the purchase of certain coal reserves.

The installment purchase arrangement contains customary terms and events of default and provides for six annual payments of $ 1.2 million each, with an interest rate of 5.0 %, beginning on January 1, 2027 and maturing on January 1, 2032.

Alliance Resource Properties has the right at its option, as well as the obligation if demanded by The Joseph W.

Craft III Foundation, to prepay all unpaid purchase price installments (together with accrued and unpaid interest thereon) at any time without penalty or premium.

As of March 31, 2026, we had a $ 5.9 million outstanding balance under this arrangement.

WORKERS’ COMPENSATION AND PNEUMOCONIOSIS

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Three Months Ended

Nine Months Ended

September 30,

(in thousands)

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Interest accretion

Valuation loss (gain) (1)

Ending balance

(1) Our estimate of the liability for the present value of current workers′ compensation benefits is based on our actuarial calculations.

Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claims development patterns, mortality, medical costs and interest rates.

The valuation loss in 2025 is due to a decrease in the discount rate from 5.17 % on December 31, 2024 to 4.92 % on June 30, 2025.

The valuation gain in 2024 is due to an increase in the discount rate from 4.66 % on December 31, 2023 to 5.18 % on June 30, 2024.

We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a claim have been met.

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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 September 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 March 31, 2026 are $ 4.1 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.

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Three Months Ended

Nine Months Ended

September 30,

(in thousands)

Interest cost (1)

Net amortization (1)

Amortization of net actuarial loss (1)

Other adjustments (1) (2)

Net periodic benefit cost

(1) Interest cost and net amortization are included in the Other income (expense) line item within our condensed consolidated statements of income.

(1) Interest cost, amortization of net actuarial loss and other adjustments are included in the Other income line item within our condensed consolidated statements of income.

(2) This line item includes an immaterial adjustment related to the correction of actuarial assumptions for terminated employees in the prior period.

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

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

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

The Pension Plan is 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.

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Three Months Ended

Nine Months Ended

September 30,

(in thousands)

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Amortization of prior service cost

Amortization of net loss

Net periodic benefit credit (1)

(1) Net periodic benefit credit for the Pension Plan is included in the Other income (expense) line item within our condensed consolidated statements of income.

(1) Net periodic benefit credit for the Pension Plan is included in the Other income line item within our condensed consolidated statements of income.

We do not expect to make material contributions to the Pension Plan during 2026.

CONTINGENCIES

Certain of our subsidiaries are party to litigation in which the plaintiffs allege violations of the Fair Labor Standards Act and state law due to alleged failure to compensate for time “donning” and “doffing” equipment and to account for certain bonuses in the calculation of overtime rates and pay.

The plaintiffs in these cases sought class and collective action certification, which we opposed.

In April 2024, we entered into a settlement agreement with the plaintiffs pursuant to which we agreed to settle such litigation for $ 15.3 million.

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

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 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.

We have various lawsuits, claims and regulatory proceedings incidental to our business that are pending against us.

We record an accrual for a potential loss related to these matters when, in management’s opinion, such loss is probable and reasonably estimable.

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February 13, 2026

August 14, 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.

May 15, 2026 (1)

(1) On April 27, 2026, we declared this quarterly distribution payable on May 15, 2026 to all unitholders of record as of May 8, 2026.

Change in Partners’ Capital

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

The following tables present the quarterly change in Partners' Capital for the three months ended March 31, 2026 and 2025:

Limited Partner

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Comprehensive income:

Other comprehensive income

Other comprehensive loss

Total comprehensive income

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Balance at March 31, 2026

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 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

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Balance at January 1, 2025

Cumulative-effect adjustment

Comprehensive income:

Actuarially determined long-term liability adjustments

Other comprehensive income

Total comprehensive income

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Balance at March 31, 2025

Comprehensive income:

Actuarially determined long-term liability adjustments

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 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

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Non-vested grants at January 1, 2026

Non-vested grants at September 30, 2025

Non-vested grants at March 31, 2026

(1) The restricted units granted during 2026 have certain minimum-value guarantees per unit, regardless of whether the awards vest.

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

(2) During the three months ended March 31, 2026, we issued 230,777 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 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.

LTIP expense for grants of restricted units was $ 1.7 million and $ 2.0 million for the three months ended March 31, 2026 and 2025, respectively.

The total obligation associated with LTIP grants of restricted units as of March 31, 2026 was $ 9.9 million and is included in the partners’ capital Limited partners-common unitholders line item on our condensed consolidated balance sheets.

As of March 31, 2026, there was $ 16.6 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 1.7 years.

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(in thousands)

Three Months Ended September 30, 2025

Oil & gas royalties

Coal royalties

Transportation revenues

Other revenues

Total revenues

Three Months Ended September 30, 2024

Oil & gas royalties

Coal royalties

Transportation revenues

Other revenues

Total revenues

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Oil & gas royalties

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Total revenues

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Oil & gas royalties

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Three Months Ended

Nine Months Ended

September 30,

(in thousands)

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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 September 30, 2025 and disaggregated by segment and contract duration.

The following table illustrates the amount of our transaction price for all coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2026 and disaggregated by segment and contract duration.

(in thousands)

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Total coal revenues

RELATED-PARTY TRANSACTIONS

Craft Foundations

In January 2005, we acquired Tunnel Ridge from Alliance Resource Holdings, Inc., a wholly owned subsidiary of ARLP.

In connection with this acquisition, we assumed a coal lease and surface land lease with Alliance Resource GP, LLC, an entity indirectly wholly owned by Mr.

Craft and Kathleen S.

Craft until it was dissolved in December 2020.

In December 2018, the property subject to the leases was transferred to The Joseph W.

Craft III Foundation and The Kathleen S.

Craft Foundation (the “Craft Foundations”).

On January 29, 2026, Alliance Resource Properties purchased all of the ownership interests in the coal reserves and surface rights located in Ohio County, West Virginia and Washington County, Pennsylvania that were subject to the leases from the Craft Foundations for $ 15.5 million in the aggregate.

The entire purchase price of $ 7.75 million payable to The Kathleen S.

Craft Foundation was paid in full at the closing, while The Joseph W.

Craft III Foundation was paid approximately $ 1.8 million at closing with the balance of the purchase price to be paid over the next six years .

See Note 10 – Long-Term Debt for more information on the installment purchase arrangement.

Components of income tax expense are as follows:

Three 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 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.

Income tax expense (benefit)

The effective income tax rates for our income tax expense for the three months ended March 31, 2026 and 2025 are less than the federal statutory rate, primarily due to the portion of income not subject to income taxes.

Our 2020 through 2025 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.

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Net income attributable to ARLP is allocated to limited partners and participating securities with nonforfeitable distributions or distribution equivalents, while net losses attributable to ARLP are allocated only to limited partners but not to participating securities.

During 2025, our participating securities represent outstanding restricted unit awards under our LTIP.

During 2024, our participating securities also included phantom units in notional accounts under our Supplemental Executive Retirement Plan (“SERP”) and the MGP Amended and Restated Deferred Compensation Plan for Directors (“Directors’ Deferred Compensation Plan”).

The SERP and Directors’ Deferred Compensation Plan were terminated and settled in December 2024 and no longer have participating securities that receive an allocation of income.

Our participating securities represent outstanding restricted unit awards under our LTIP.

The following is a reconciliation of net income attributable to ARLP used for calculating basic and diluted earnings per unit and the weighted-average units used in computing EPU:

Three Months Ended

Nine Months Ended

September 30,

(in thousands, except per unit data)

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Distributions to participating securities

Undistributed earnings attributable to participating securities

Net income attributable to ARLP available to limited partners

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

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 .

For the three months ended March 31, 2026 and 2025, participating securities of 648 and 817 , respectively, were considered anti-dilutive under the treasury stock method.

SEGMENT INFORMATION

We operate in the United States as a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic utilities, industrial users and international customers as well as royalty income from oil & gas mineral interests.

We aggregate multiple operating segments into four reportable segments, Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties.

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Our two coal operations reportable segments correspond to major coal producing regions in the eastern United States with similar economic characteristics including coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues.

The two coal operations reportable segments include seven mining complexes operating in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia and a coal loading terminal in Indiana on the Ohio River.

Our Oil & Gas Royalties reportable segment includes our oil & gas mineral interests which are located primarily in the Permian (Delaware and Midland), Anadarko (SCOOP/STACK) and Williston (Bakken) basins.

The operations within our Oil & Gas Royalties reportable segment primarily include receiving royalties and lease bonuses for our oil & gas mineral interests.

Our Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties, which are either (a) leased to our mining complexes or (b) near our coal mining operations but not yet leased.

The Illinois Basin Coal Operations reportable segment includes (a) the Gibson County Coal, LLC’s mining complex, (b) the Warrior Coal, LLC mining complex, (c) the River View mining complex, which includes the River View and Henderson County mines and (d) the Hamilton mining complex.

The segment also includes our Mt.

Vernon Transfer Terminal, LLC (“Mt.

Vernon”) coal loading terminal in Indiana which operates on the Ohio River, Mid-America Carbonates, LLC and other support services, and our non-operating mining complexes.

The Appalachia Coal Operations reportable segment includes (a) the Mettiki mining complex, (b) the Tunnel Ridge, LLC mining complex and (c) the MC Mining complex.

The Illinois Basin Coal Operations reportable segment includes (a) the Gibson County Coal, LLC mining complex, (b) the Warrior Coal, LLC mining complex, (c) the River View Coal, LLC mining complex, which includes the River View and Henderson County mines and (d) the Hamilton mining complex.

The segment also includes activity associated with support services and our non-operating mining complexes.

The Appalachia Coal Operations reportable segment includes (a) the Mettiki mining complex, (b) the Tunnel Ridge, LLC mining complex and (c) the MC Mining, LLC mining complex.

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

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 7 – Digital Assets), our non-oil & gas equity investments (see Note 3 – Variable Interest Entities and Note 9 – Investments), Wildcat Insurance, LLC which assists the ARLP Partnership with its insurance requirements, and AROP Funding and Alliance Finance (both discussed in Note 10 – Long-Term Debt).

The eliminations included in Other, Corporate and Elimination primarily represent the intercompany coal royalty transactions described above between our Coal Royalties reportable segment and our coal operations’ mines.

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(in thousands)

Three Months Ended September 30, 2025

Revenues - Outside

Revenues - Intercompany

Total revenues (1)

Segment Adjusted EBITDA Expense (2)

Transportation expenses

Other segment items (3)

Segment Adjusted EBITDA (4)

Capital expenditures (6)

Three Months Ended September 30, 2024

Revenues - Outside

Revenues - Intercompany

Total revenues (1)

Segment Adjusted EBITDA Expense (2)

Transportation expenses

Other segment items (3)

Segment Adjusted EBITDA (4)

Capital expenditures (6)

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Revenues - Outside

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Capital expenditures (6)

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Revenues - Outside

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Three Months Ended

Nine Months Ended

September 30,

(in thousands)

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(2) Segment Adjusted EBITDA Expense includes operating expenses, coal purchases, if applicable, and other income or expense as adjusted to remove certain items from operating expenses that we characterize as unrepresentative of our ongoing operations.

Segment Adjusted EBITDA Expense is used as a financial measure by our management to assess the operating performance of our segments.

Segment Adjusted EBITDA Expense is used as a financial measure by our management to assess

the operating performance of our segments.

Segment Adjusted EBITDA Expense is a key component of Segment Adjusted EBITDA in addition to coal sales, royalty revenues and other revenues.

9 unchanged sentences

Three Months Ended

Nine Months Ended

September 30,

(in thousands)

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Depreciation, depletion and amortization

Asset impairments

Interest expense, net

Change in fair value of digital assets

Impairment loss on investments

Litigation expense accrual

Noncontrolling interest

3 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 $ 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.

(6) Capital expenditures exclude $ 16.2 million paid towards oil & gas reserve acquisitions for the three months ended March 31, 2026.

Three 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