What changed in this filing

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Item 1. Financial Statements

2022-11-07 compared with 2022-08-08 · 166 added, 77 removed, 629 unchanged (28% of the section changed)

4 unchanged sentences

(In thousands, except unit data)

September 30,

CURRENT ASSETS:

58 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

SALES AND OPERATING REVENUES:

10 unchanged sentences

INCOME FROM OPERATIONS

Interest expense (net of interest capitalized for the three and six months ended June 30, 2022 and 2021 of $ 171 , $ 105 , $ 241 and $ 191 , respectively)

Interest expense (net of interest capitalized for the three and nine months ended September 30, 2022 and 2021 of $ 264 , $ 123 , $ 505 and $ 314 , respectively)

Interest income

2 unchanged sentences

INCOME BEFORE INCOME TAXES

INCOME TAX EXPENSE (BENEFIT)

INCOME TAX EXPENSE

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST

8 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

OTHER COMPREHENSIVE INCOME:

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(In thousands)

Six Months Ended

Nine Months Ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES

7 unchanged sentences

Distributions received from investments in excess of cumulative earnings

Payment for acquisition of business

Escrow deposit for oil & gas reserve acquisitions

Net cash used in investing activities

8 unchanged sentences

Payment of debt issuance costs

Payments for purchase of units and tax withholdings related to settlements under deferred compensation plans

Distributions paid to Partners

9 unchanged sentences

Right-of-use assets acquired by operating lease

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

See notes to condensed consolidated financial statements.

34 unchanged sentences

On April 5, 2022, we committed to invest up to $ 50 million in Francis Renewable Energy, LLC ("Francis") through the purchase of preferred equity interests.

As of September 30, 2022, we have elected to hold our commitment to Francis at our initial $ 20 million convertible note investment.

Francis currently is active in the installation, management and operation of metered-for-fee, public-access electric vehicle ("EV") charging stations.

9 unchanged sentences

For more information on this investment please see Note 10 – Investments.

On November 2, 2022, we purchased an additional $ 9.4 million of Series D Preferred Stock in Infinitum.

NGP ETP IV Investment

3 unchanged sentences

For more information on this investment please see Note 9 – Variable Interest Entities.

Belvedere Acquisition

On September 9, 2022, we acquired approximately 394 net oil & gas royalty acres in the Delaware Basin from Belvedere Operating, LLC ("Belvedere") for a purchase price of $ 11.4 million (the "Belvedere Acquisition").

This acquisition enhances our ownership position in the Permian Basin and furthers our business strategy to grow our Oil & Gas Royalties segment.

For more information on this acquisition please see Note 3 – Acquisition.

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, 2022 and December 31, 2021, the results of our operations and comprehensive income for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021.

The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of September 30, 2022 and December 31, 2021, the results of our operations and comprehensive income for the three and nine months ended September 30, 2022 and 2021, and cash flows for the nine months ended September 30, 2022 and 2021.

All intercompany transactions and accounts have been eliminated.

26 unchanged sentences

The adoption of ASU 2021-10 did not have a material impact on our condensed consolidated financial statements.

On September 9, 2022 (the "Belvedere Acquisition Date"), our subsidiary, Alliance Royalty, LLC acquired approximately 394 net oil & gas royalty acres in the Delaware Basin from Belvedere for a cash purchase price of $ 11.4 million, which was funded with cash on hand.

This acquisition gives us increased exposure to a prolific area of the Delaware Basin and is within close proximity to reserves that we currently own.

Because the mineral interests acquired in the Belvedere Acquisition include royalty interests in both developed properties and undeveloped properties, 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 Belvedere Acquisition Date on our condensed consolidated balance sheet.

The following table summarizes the fair value allocation of assets acquired as of the Belvedere 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 Belvedere Acquisition included in our condensed consolidated statements of income since the Belvedere Acquisition Date are as follows:

Three Months Ended

September 30,

(in thousands)

The following represents our pro forma revenues and net income for the three and nine months ended September 30, 2022 and 2021 as if the mineral interests acquired in the Belvedere Acquisition had been included in our consolidated results since January 1, 2021.

These amounts have been calculated after applying our accounting policies.

Three Months Ended

Nine Months Ended

September 30,

(in thousands)

Total revenues

CONTINGENCIES

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Inventories consist of the following:

September 30,

(in thousands)

3 unchanged sentences

The following table summarizes our fair value measurements within the hierarchy not included elsewhere in these notes:

June 30, 2022

September 30, 2022

December 31, 2021

8 unchanged sentences

Debt Issuance Costs

September 30,

(in thousands)

12 unchanged sentences

Borrowings under the Revolving Credit Facility bear interest, at our option, at either (i) the Base Rate at the greater of three benchmarks or (ii) a Eurodollar Rate, plus margins for (i) or (ii), as applicable, that fluctuate depending upon the ratio of Consolidated Debt to Consolidated Cash Flow (each as defined in the Credit Agreement).

The Eurodollar Rate, with applicable margin, under the Revolving Credit Facility was 4.14 % as of June 30, 2022.

On June 30, 2022, we had $ 44.1 million of letters of credit outstanding with $ 415.4 million available for borrowing under the Revolving Credit Facility.

The Eurodollar Rate, with applicable margin, under the Revolving Credit Facility was 5.49 % as of September 30, 2022.

On September 30, 2022, we had $ 44.1 million of letters of credit outstanding with $ 415.4 million available for borrowing under the Revolving Credit Facility.

We incur an annual commitment fee of 0.35 % on the undrawn portion of the Revolving Credit Facility.

4 unchanged sentences

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

The debt to cash flow ratio, cash flow to interest expense ratio and first lien debt to cash flow ratio were 0.74 to 1.0, 15.52 to 1.0 and 0.07 to 1.0, respectively, for the trailing twelve months ended June 30, 2022.

We remained in compliance with the covenants of the Credit Agreement as of June 30, 2022 and anticipate remaining in compliance with the covenants.

The debt to cash flow ratio, cash flow to interest expense ratio and first lien debt to cash flow ratio were 0.64 to 1.0, 17.63 to 1.0 and 0.05 to 1.0, respectively, for the trailing twelve months ended September 30, 2022.

We remained in compliance with the covenants of the Credit Agreement as of September 30, 2022 and anticipate remaining in compliance with the covenants.

Senior Notes.

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

On June 30, 2022, we had $ 9.2 million of letters of credit outstanding with $ 50.8 million available for borrowing under the Securitization Facility.

On September 30, 2022, we had $ 9.2 million of letters of credit outstanding with $ 50.8 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.

The Securitization Facility is scheduled to mature in January 2023.

On June 30, 2022, we had no outstanding balance under the Securitization Facility.

On September 30, 2022, we had no outstanding balance under the Securitization Facility.

May 2019 Equipment Financing .

8 unchanged sentences

On June 5, 2020, the Intermediate Partnership entered into an equipment financing arrangement accounted for as debt, wherein the Intermediate Partnership received $ 14.7 million in exchange for conveying its interest in certain equipment owned indirectly by the Intermediate Partnership and entering into a master lease agreement for that equipment (the "June 2020 Equipment Financing").

The June 2020 Equipment Financing contains

customary terms and events of default and provides for forty-eight monthly payments with an implicit interest rate of 6.1 % , maturing on June 5, 2024.

The June 2020 Equipment Financing contains customary terms and events of default and provides for forty-eight monthly payments with an implicit interest rate of 6.1 % , maturing on June 5, 2024.

Upon maturity, the equipment will revert to the Intermediate Partnership.

Components of income tax expense (benefit) are as follows:

Three Months Ended June 30,

Six Months Ended June 30,

Components of income tax expense are as follows:

Three Months Ended

Nine Months Ended

September 30,

(in thousands)

Income tax expense (benefit)

Alliance Minerals' Tax Election resulted in the recognition of an initial deferred tax liability of $ 37.3 million and a corresponding increase to income tax expense for the six months ended June 30, 2022.

This increase in income tax expense reduced net income by $ 37.3 million, or approximately $ 0.29 per basic and diluted limited partner unit, for the six months ended June 30, 2022.

Recognition of the initial deferred tax liability and expense is primarily the result of the $ 177.0 million non-cash acquisition gain recognized in 2019 related to the acquisition of the remaining interests in AllDale Minerals LP ("AllDale I") and AllDale Minerals II, LP ("AllDale II", and collectively with AllDale I, "AllDale I & II") (the “Acquisition Gain”).

Income tax expense

Alliance Minerals' Tax Election resulted in the recognition of an initial deferred tax liability of $ 37.3 million and a corresponding increase to income tax expense for the nine months ended September 30, 2022.

This increase in income tax expense reduced net income by $ 37.3 million, or approximately $ 0.29 per basic and diluted limited partner unit, for the nine months ended September 30, 2022.

The Acquisition Gain was recognized to step up to fair value the financial reporting basis of the interests we already owned at the time of acquisition.

2 unchanged sentences

federal statutory tax rate to income taxes at our effective tax rate are as follows:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended

Nine Months Ended

September 30,

(in thousands)

5 unchanged sentences

Deferred taxes related to tax election

Income tax expense (benefit)

The effective income tax rate for our income tax expense for the three months ended June 30, 2022 is less than the federal statutory rate, primarily due to the portion of income not subject to income taxes, partially offset by the effect of the Tax Election previously discussed.

The effective income tax rate for our income tax expense for the six months ended June 30, 2022 is greater than the federal statutory rate, primarily due to the effect of the Tax Election, partially offset by the portion of income not subject to income taxes.

The effective income tax rate for our income tax expense (benefit) for the three and six months ended June 30, 2021 is less than the federal statutory rate, primarily due to the portion of income not subject to income taxes.

Income tax expense

The effective income tax rate for our income tax expense for the three and nine months ended September 30, 2022 is less than the federal statutory rate, primarily due to the portion of income not subject to income taxes, partially offset by the effect of the Tax Election previously discussed.

The effective income tax rate for our income tax expense for the three and nine months ended September 30, 2021 is less than the federal statutory rate, primarily due to the portion of income not subject to income taxes.

Significant components of deferred tax liabilities and deferred tax assets are as follows:

September 30,

(in thousands)

10 unchanged sentences

Federal loss carryovers and credits are primarily due to net operating losses and research and development credits associated with the operations of other subsidiaries that are taxable for federal income tax purposes.

The valuation allowance as of June 30, 2022 and 2021 serves to reduce the available deferred tax assets to amounts that will, more likely than not, be realized.

The valuation allowance as of September 30, 2022 and 2021 serves to reduce the available deferred tax assets to amounts that will, more likely than not, be realized.

We considered all available positive and negative evidence, which incorporates available tax planning strategies and our estimate of future reversals of existing temporary differences, and have determined that a portion of our deferred tax assets relating to state losses and credits may not be realized.

Our 2019 through 2021 tax years remain open to examination by tax authorities.

We have been notified by the Internal Revenue Service that lower-tier partnership income tax returns for the tax year ended December 31, 2020 have been selected for audit.

VARIABLE INTEREST ENTITIES

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On April 5, 2022, we committed to invest up to $ 50 million in Francis through the purchase of preferred equity interests.

We funded the first $ 20 million on April 5, 2022, in the form of a convertible note with a maturity date of April 1, 2023.

Our convertible note represents a 15.4 % ownership interest in Francis.

The note converts into preferred equity interests in Francis at maturity, or any time prior at our option.

We funded $20 million on April 5, 2022, in the form of a convertible note with a maturity date of April 1, 2023.

As of September 30, 2022, we have elected to hold our commitment to Francis at our initial $20 million convertible note investment.

Our convertible note represents an ownership interest in Francis upon conversion.

We have determined the note more closely represents equity as opposed to debt.

Therefore, we will account for the convertible note as an equity contribution even though we will not participate in Francis' earnings or losses and will not be eligible to receive distributions until the note converts.

We have options to acquire the remaining preferred equity interests as part of our investment.

We have concluded that Francis is a VIE as the management structure is similar to a limited partnership with the non-managing members (i) not having the ability to remove the managing member and (ii) not participating significantly in the operational decisions.

in the operational decisions.

We are not the primary beneficiary of Francis as we do not have the power to direct the activities that most significantly impact Francis's economic performance.

3 unchanged sentences

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

We funded $ 0.1 million on June 21, 2022.

We funded $ 0.2 million during the nine months ended September 30, 2022.

Our final ownership percentage in NGP ETP IV is not yet known.

6 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

4 unchanged sentences

As discussed in Note 9 – Variable Interest Entities, we accounted for our ownership interest in the income or loss of Francis as an equity method investment.

The changes in our equity method investment in Francis for three months ended June 30, 2022 were as follows:

The changes in our equity method investment in Francis for the three and nine months ended September 30, 2022 were as follows:

Three Months Ended

Nine Months Ended

September 30,

(in thousands)

3 unchanged sentences

As discussed in Note 9 – Variable Interest Entities, we account for our ownership interest in the income or loss of NGP ETP IV as an equity method investment.

The changes in our equity method investment in NGP ETP IV for three months ended June 30, 2022 were as follows:

The changes in our equity method investment in NGP ETP IV for three and nine months ended September 30, 2022 were as follows:

Three Months Ended

Nine Months Ended

September 30,

(in thousands)

8 unchanged sentences

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

There were no changes in our investment in Infinitum for three months ended June 30, 2022.

There have been no fair value adjustments in our investment in Infinitum subsequent to our purchase.

During the period we have not observed any price changes that have occurred to identical or similar securities sold by Infinitum that would indicate an adjustment to the fair value of our investment is warranted.

As discussed in Note 1 – Organization and Presentation, on November 2, 2022, we purchased an additional $ 9.4 million of Series D Preferred Stock in Infinitum.

The stock was purchased at the same price per share as those shares of Series D Preferred Stock that we acquired on April 29, 2022.

PARTNERS' CAPITAL

8 unchanged sentences

August 12, 2022

(1) On July 26, 2022, we declared this quarterly distribution payable on August 12, 2022 to all unitholders of record as of August 5, 2022.

November 14, 2022 (1)

(1) On October 28, 2022, we declared this quarterly distribution payable on November 14, 2022 to all unitholders of record as of November 7, 2022.

Unit Repurchase Program

2 unchanged sentences

The unit repurchase program authorization does not obligate us to repurchase any dollar amount or number of units.

No unit repurchases were made during the six months ended June 30, 2022.

No unit repurchases were made during the nine months ended September 30, 2022.

Since inception of the unit repurchase program, we have repurchased and retired 5,460,639 units at an average unit price of $ 17.12 for an aggregate purchase price of $ 93.5 million.

1 unchanged sentence

Change in Partners' Capital

The following tables present the quarterly change in Partners' Capital for the six months ended June 30, 2022 and 2021:

The following tables present the quarterly change in Partners' Capital for the nine months ended September 30, 2022 and 2021:

Limited Partner

21 unchanged sentences

Balance at June 30, 2022

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 September 30, 2022

Limited Partner

19 unchanged sentences

Balance at June 30, 2021

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, 2021

REVENUE FROM CONTRACTS WITH CUSTOMERS

3 unchanged sentences

(in thousands)

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Oil & gas royalties

3 unchanged sentences

Total revenues

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Oil & gas royalties

3 unchanged sentences

Total revenues

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Oil & gas royalties

3 unchanged sentences

Total revenues

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Oil & gas royalties

3 unchanged sentences

Total revenues

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, 2022 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, 2022 and disaggregated by segment and contract duration.

(in thousands)

8 unchanged sentences

Our participating securities are outstanding restricted unit awards under our Long-Term Incentive Plan ("LTIP") and 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 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 for the three and six months ended June 30, 2022 and 2021:

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.

The combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 3,529 and 3,289 for the three and six months ended June 30, 2022, respectively, and 1,525 and 1,397 for the three and six months ended June 30, 2021 , respectively, were considered anti-dilutive under the treasury stock method .

The combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 3,754 and 3,431 for the three and nine months ended September 30, 2022, respectively, and 2,328 and 1,706 for the three and nine months ended September 30, 2021 , respectively, were considered anti-dilutive under the treasury stock method .

WORKERS' COMPENSATION AND PNEUMOCONIOSIS

1 unchanged sentence

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

5 unchanged sentences

(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.

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 gain in 2022 is due to an increase in the discount rate from 2.41 % on December 31, 2021 to 4.22 % on June 30, 202 2 .

3 unchanged sentences

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

Our receivables for traumatic injury claims under this policy as of June 30, 2022 are $ 5.7 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, 2022 are $ 5.7 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)

10 unchanged sentences

Annual grant levels, vesting provisions and minimum-value guarantees of restricted units for designated participants are recommended by Mr.

Craft, subject to review and approval of the compensation committee of the MGP board of directors (the "Compensation Committee").

Craft, subject to review and approval of the compensation committee of the MGP board of directors

(the "Compensation Committee").

Vesting of all restricted units outstanding is subject to the satisfaction of certain financial tests.

5 unchanged sentences

If it is not probable the financial tests for a particular grant of restricted units will be met, any previously paid DER amounts for that grant are reversed from Partners' Capital and recorded as compensation expense and future DERs for that grant, if any, will be recognized as compensation expense when paid.

A summary of non-vested LTIP grants as of and for the six months ended June 30, 2022 is as follows:

A summary of non-vested LTIP grants as of and for the nine months ended September 30, 2022 is as follows:

Number of units

3 unchanged sentences

Non-vested grants at January 1, 2022

Non-vested grants at June 30, 2022

(1) The restricted units granted during 2022 have minimum-value guarantees of either $ 9.62 or $ 6.41 per unit, regardless of whether or not the awards vest.

LTIP expense for grants of restricted units was $ 2.1 million and $ 1.4 million for the three months ended June 30, 2022 and 2021, respectively, and $ 4.4 million and $ 2.1 million for the six months ended June 30, 2022 and 2021, respectively.

The total obligation associated with LTIP grants of restricted units as of June 30, 2022 was $ 11.0 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets.

As of June 30, 2022, there was $ 14.5 million in total unrecognized compensation expense related to the non-vested LTIP restricted unit grants that are expected to vest.

Non-vested grants at September 30, 2022

(1) The restricted units granted during 2022 have certain minimum-value guarantees per unit, regardless of whether or not the awards vest.

LTIP expense for grants of restricted units was $ 2.4 million and $ 1.7 million for the three months ended September 30, 2022 and 2021, respectively, and $ 6.8 million and $ 3.8 million for the nine months ended September 30, 2022 and 2021, respectively.

The total obligation associated with LTIP grants of restricted units as of September 30, 2022 was $ 13.4 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets.

As of September 30, 2022, there was $ 14.0 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 1.1 years.

9 unchanged sentences

All grants of phantom units under the SERP and Directors' Deferred Compensation Plan vest immediately.

A summary of SERP and Directors' Deferred Compensation Plan activity as of and for the six months ended June 30, 2022 is as follows:

A summary of SERP and Directors' Deferred Compensation Plan activity as of and for the nine months ended September 30, 2022 is as follows:

Number of units

3 unchanged sentences

Phantom units outstanding as of January 1, 2022

Phantom units outstanding as of June 30, 2022

Total SERP and Directors' Deferred Compensation Plan expense was $ 0.3 million and $ 0.1 million for the three months ended June 30, 2022 and 2021, respectively, and $ 0.6 million and $ 0.2 million for the six months ended June 30, 2022 and 2021, respectively.

As of June 30, 2022, the total obligation associated with the SERP and Directors' Deferred Compensation Plan was $ 14.0 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets.

Phantom units outstanding as of September 30, 2022

Total SERP and Directors' Deferred Compensation Plan expense was $ 0.4 million and $ 0.1 million for the three months ended September 30, 2022 and 2021, respectively, and $ 0.9 million and $ 0.3 million for the nine months ended September 30, 2022 and 2021, respectively.

As of September 30, 2022, the total obligation associated with the SERP and Directors' Deferred Compensation Plan was $ 14.3 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets.

COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

4 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

20 unchanged sentences

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

The Mettiki mining complex includes Mettiki Coal (WV), LLC's Mountain View mine and Mettiki Coal, LLC's preparation plant.

The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by AR Midland, LP ("AR Midland") and AllDale I & II and includes Alliance Minerals' equity interests in both AllDale III (Note 10 – Investments) and Cavalier Minerals.

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 both the Illinois Basin Coal Operations and Appalachia Coal Operations reportable segments or (b) located near our operations and external mining operations.

Approximately two thirds of the coal sold by our Coal Operations' mines is leased from our Coal Royalties entities.

5 unchanged sentences

(in thousands)

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Revenues - Outside

4 unchanged sentences

Capital expenditures

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Revenues - Outside

4 unchanged sentences

Capital expenditures

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Revenues - Outside

4 unchanged sentences

Capital expenditures

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Revenues - Outside

9 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

7 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

3 unchanged sentences

Interest expense, net

Income tax (expense) benefit

Income tax expense

Net income attributable to ARLP

Noncontrolling interest

SUBSEQUENT EVENTS

Jase Acquisition

On October 26, 2022, we acquired approximately 3,928 oil & gas net royalty acres in the Midland and Delaware Basins from Jase Minerals, LP for a purchase price of $ 81.2 million which was funded with cash on hand.

Because the acquisition includes both developed and undeveloped properties we will account for the acquisition as a business combination.

This acquisition enhanced our ownership position in the Permian Basin.

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