What changed in this filing

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Item 1. Financial Statements

2024-11-07 compared with 2024-08-07 · 127 added, 75 removed, 650 unchanged (24% of the section changed)

4 unchanged sentences

(In thousands, except unit data)

September 30,

CURRENT ASSETS:

56 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

SALES AND OPERATING REVENUES:

10 unchanged sentences

INCOME FROM OPERATIONS

Interest expense (net of interest capitalized for the three and six months ended June 30, 2024 and 2023 of $ 2,786 , $ 1,216 , $ 5,084 and $ 2,623 , respectively)

Interest expense (net of interest capitalized for the three and nine months ended September 30, 2024 and 2023 of $ 3,521 , $ 1,809 , $ 8,605 and $ 4,432 , respectively)

Interest income

17 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

OTHER COMPREHENSIVE INCOME:

16 unchanged sentences

(In thousands)

Six Months Ended

Nine Months Ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES

5 unchanged sentences

Contributions to equity method investments

Purchase of equity securities

JC Resources acquisition

43 unchanged sentences

Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of June 30, 2024 and December 31, 2023, the results of our operations and comprehensive income for the three and six months ended June 30, 2024 and 2023 and cash flows for the six months ended June 30, 2024 and 2023.

The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of September 30, 2024 and December 31, 2023, the results of our operations and comprehensive income for the three and nine months ended September 30, 2024 and 2023 and cash flows for the nine months ended September 30, 2024 and 2023.

All intercompany transactions and accounts have been eliminated.

23 unchanged sentences

In addition, the guidance requires additional disclosures related to digital assets once adopted.

We adopted ASU 2023-08, effective January 1, 2024, which resulted in a cumulative-effect adjustment to increase the opening balance of Partners' Capital of $ 6.2 million.

We adopted ASU 2023-08, effective January 1, 2024, which resulted in a cumulative-effect adjustment to increase the opening balance of Partners' Capital by $ 6.2 million.

See Note 6 – Digital Assets for more information on our digital assets.

4 unchanged sentences

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted.

We are currently evaluating the impact of adopting ASU 2023-07, but do not expect it to have a material effect on our consolidated financial statements.

We do not expect ASU 2023-07 to have a material effect on our consolidated financial statements but will result in changes in our segment reporting disclosures upon adoption.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

10 unchanged sentences

and is paid a periodic management fee.

During the six months ended June 30, 2024, we purchased $ 0.6 million and $ 1.9 million of oil & gas mineral interests in proved and unproved properties, respectively, pursuant to this agreement.

During the nine months ended September 30, 2024, we purchased $ 5.1 million and $ 7.8 million of oil & gas mineral interests in proved and unproved properties, respectively, pursuant to this agreement.

Management fees paid under this agreement have been immaterial.

Miscellaneous Acquisitions

In addition to the acquisitions under the collaborative agreement discussed above, we purchased $ 0.6 million and $ 1.6 million of oil & gas mineral interests in proved and unproved properties, respectively, during the six months ended June 30, 2024.

In addition to the acquisitions under the collaborative agreement discussed above, we purchased $ 0.7 million and $ 1.6 million of oil & gas mineral interests in proved and unproved properties, respectively, during the nine months ended September 30, 2024.

CONTINGENCIES

1 unchanged sentence

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.

As a result of reaching this settlement, which is subject to court approval, we have accrued $ 15.3 million as of June 30, 2024.

As a result of reaching this settlement, which is subject to court approval, we have accrued $ 15.3 million as of September 30, 2024.

Our $ 15.3 million accrual is included in the Other current liabilities line item on our condensed consolidated balance sheet.

4 unchanged sentences

Inventories consist of the following:

September 30,

(in thousands)

4 unchanged sentences

Total inventories, net

During the six months ended June 30, 2024, we recorded lower of cost or net realizable value adjustments of $ 16.9 million to our coal inventories.

These adjustments are a result of lower coal sale prices and higher cost per ton primarily due to lower production at the Mettiki mining complex and ongoing development activities at the Henderson County mine at our River View Coal, LLC ("River View") mining complex.

The above balances reflect lower of cost or net realizable value adjustments of $ 5.9 million to our coal inventories.

These adjustments are primarily a result of lower coal sale prices and higher cost per ton at the Mettiki Mining, LLC ("Mettiki") and MC Mining, LLC ("MC Mining") mining complexes.

Certain of our subsidiaries, primarily consisting of Matrix Design Group, LLC, its subsidiaries, and Alliance Design Group, LLC (collectively referred to as "Matrix Group"), manufacture a variety of products for our mining operations and third parties.

4 unchanged sentences

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

June 30, 2024

September 30, 2024

Digital assets:

2 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Digital assets:

1 unchanged sentence

Beginning balance

Fair value gains (losses)

Fair value gains

Ending balance

1 unchanged sentence

Additions are the result of awarded digital assets received from our crypto-mining activities, while dispositions are the result of sales and payments for services.

During the three and six months ended June 30, 2024, we had digital asset dispositions of $ 0.8 million and $ 1.7 million, respectively, inclusive of realized gains of $ 0.5 million and $ 1.1 million, respectively.

During the three and nine months ended September 30, 2024, we had digital asset dispositions of $ 1.4 million and $ 3.1 million, respectively, inclusive of realized gains of $ 1.0 million and $ 2.1 million, respectively.

FAIR VALUE MEASUREMENTS

2 unchanged sentences

(in thousands)

June 30, 2024

September 30, 2024

Recorded on a recurring basis:

8 unchanged sentences

The carrying amounts for cash equivalents, accounts receivable, accounts payable, accrued and other liabilities approximate fair value due to the short maturity of those instruments.

The fair value of our digital assets are based on an exchange quoted price.

The fair value of our digital assets is based on an exchange quoted price.

See Note 6 – Digital Assets for more information on our digital assets.

5 unchanged sentences

Debt Issuance Costs

September 30,

(in thousands)

14 unchanged sentences

The Revolving Credit Facility is underwritten by a syndicate of several financial institutions and the obligations of the lenders are individual obligations, which means the failure of one or more lenders to be able to fund its obligation does not relieve the remaining lenders from funding their obligations.

Based on our diligence, including discussions with representatives of certain of these financial institutions, as of June 30, 2024 we have no reason to believe that the banks within our syndicate are facing financial difficulties, defaults or limited liquidity situations that would cause them to be unable to fund their obligations under the Credit Agreement.

Based on our diligence, including discussions with representatives of certain of these financial institutions, as of September 30, 2024 we have no reason to believe that the banks within our syndicate are facing financial difficulties, defaults or limited liquidity situations that would cause them to be unable to fund their obligations under the Credit Agreement.

However, should any of the banks in our syndicate experience conditions in the future that limit their ability to fund their obligations, the amount available under the Revolving Credit Facility could be reduced.

4 unchanged sentences

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

For borrowings under the Term Loan, we elected the one-month term rate, with applicable margin, which was 8.7 % as of June 30, 2024.

At June 30, 2024, 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 8.2 % as of September 30, 2024.

At September 30, 2024, 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.

4 unchanged sentences

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 0.16 to 1.0 , 0.78 to 1.0 and 49.06 to 1.0 , respectively, for the trailing twelve months ended June 30, 2024.

We were in compliance with the covenants of the Credit Agreement as of June 30, 2024 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 0.17 to 1.0 , 0.84 to 1.0 and 43.19 to 1.0 , respectively, for the trailing twelve months ended September 30, 2024.

We were in compliance with the covenants of the Credit Agreement as of September 30, 2024 and anticipate remaining in compliance with the covenants.

8.625% Senior Notes due 2029

11 unchanged sentences

The 7.5% Senior Notes due 2025 had a term of eight years , maturing on May 1, 2025 and accrued interest at an annual rate of 7.5 % .

Interest was payable semi-annually in arrears on each May 1 and November 1.

The indenture governing the Senior Notes contained customary terms, events of default and covenants relating to, among other things, the incurrence of debt, the payment of distributions or similar restricted payments, undertaking transactions with affiliates and limitations on asset sales.

In June 2024, we used a portion of the net proceeds from the offering of the 2029 Senior Notes to redeem the outstanding balance of the 7.5% Senior Notes due 2025.

4 unchanged sentences

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

On June 30, 2024, we had $ 11.7 million of letters of credit outstanding with $ 78.3 million available for borrowing under the Securitization Facility.

On September 30, 2024, we had $ 11.7 million of letters of credit outstanding with $ 78.3 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.

9 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

Income tax expense

The effective income tax rates for our income tax expense for the three and six months ended June 30, 2024 and 2023 are less than the federal statutory rate, primarily due to the portion of income not subject to income taxes.

The effective income tax rates for our income tax expense for the three and nine months ended September 30, 2024 and 2023 are less than the federal statutory rate, primarily due to the portion of income not subject to income taxes.

Our 2020 through 2023 tax years remain open to examination by tax authorities, and certain lower-tier partnership income tax returns for the tax years ended December 31, 2020 and 2021 are being audited by the Internal Revenue Service.

11 unchanged sentences

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):

17 unchanged sentences

Subsequent to the conversion on April 1, 2023, we participate in earnings and losses and are eligible to receive distributions.

As of June 30, 2024, we held approximately 16.7 % of Francis' equity.

As of September 30, 2024, we held approximately 16.7 % of Francis' equity.

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

5 unchanged sentences

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

As of June 30, 2024, we have funded $ 7.9 million of this commitment.

As of September 30, 2024, we have funded $ 8.0 million of this commitment.

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

7 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

7 unchanged sentences

As a development stage company, Francis depends primarily on capital contributions to meet its operating and debt obligations.

We currently believe that the carrying value of our investment is recoverable;

however, if Francis is unable to raise sufficient funds to continue its operations and meet its debt obligations, it could have an adverse effect on our investment.

The changes in our equity method investment in Francis were as follows:

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

1 unchanged sentence

Equity method investment loss

Change in our share of Francis' net assets

Ending balance

We have not impaired our initial investment and currently believe that the carrying value of our investment is recoverable.

We account for our ownership interest in the income or loss of NGP ET IV as an equity method investment.

1 unchanged sentence

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

29 unchanged sentences

August 14, 2024

(1) On July 26, 2024, we declared this quarterly distribution payable on August 14, 2024 to all unitholders of record as of August 7, 2024.

November 14, 2024 (1)

(1) On October 28, 2024, we declared this quarterly distribution payable on November 14, 2024 to all unitholders of record as of November 7, 2024.

Unit Repurchase Program

In January 2023, the board of directors of MGP authorized a $ 93.5 million increase to the unit repurchase program authorizing us to be able to repurchase up to a total of $ 100.0 million of ARLP common units from that date.

No units were repurchased during the six months ended June 30, 2024.

During the six months ended June 30, 2023, we repurchased and retired 929,842 units at an average unit price of $ 20.90 for an aggregate purchase price of $ 19.4 million.

No units were repurchased during the nine months ended September 30, 2024.

During the nine months ended September 30, 2023, we repurchased and retired 929,842 units at an average unit price of $ 20.90 for an aggregate purchase price of $ 19.4 million.

Since inception of the unit repurchase program, we have repurchased and retired 6,390,446 units at an average unit price of $ 17.67 for an aggregate purchase price of $ 112.9 million.

Change in Partners' Capital

The following tables present the quarterly change in Partners' Capital for the three and six months ended June 30, 2024 and 2023:

The following tables present the quarterly change in Partners' Capital for the three and nine months ended September 30, 2024 and 2023:

Limited Partner

23 unchanged sentences

Balance at June 30, 2024

Comprehensive income:

Actuarially determined long-term liability adjustments

Total comprehensive income

Settlement of deferred compensation plans

Common unit-based compensation

Distributions on deferred common unit-based compensation

Distributions from consolidated company to noncontrolling interest

Distributions to Partners

Balance at September 30, 2024

Limited Partner

27 unchanged sentences

Balance at June 30, 2023

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, 2023

REVENUE FROM CONTRACTS WITH CUSTOMERS

3 unchanged sentences

(in thousands)

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Oil & gas royalties

3 unchanged sentences

Total revenues

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Oil & gas royalties

3 unchanged sentences

Total revenues

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Oil & gas royalties

3 unchanged sentences

Total revenues

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

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, 2024 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, 2024 and disaggregated by segment and contract duration.

(in thousands)

10 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands, except per unit data)

9 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 1,726 and 1,945 for the three and six months ended June 30, 2024, respectively, and 2,577 and 2,896 for the three and six months ended June 30, 2023, respectively, were considered anti-dilutive under the treasury stock method .

The combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 1,863 and 1,915 for the three and nine months ended September 30, 2024, respectively, and 2,759 and 2,878 for the three and nine months ended September 30, 2023, 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)

10 unchanged sentences

The deductible level may vary by claim year.

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

Our receivables for traumatic injury claims under this policy as of June 30, 2024 are $ 4.1 million and are included in Other long-term assets on our condensed consolidated balance sheet.

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, 2024 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.

1 unchanged sentence

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

12 unchanged sentences

( 1,582,422 )

Non-vested grants at June 30, 2024

Non-vested grants at September 30, 2024

(1) The restricted units granted during 2024 have certain minimum-value guarantees per unit, regardless of whether the awards vest.

(2) During the six months ended June 30, 2024, we issued 936,544 unrestricted common units to the LTIP participants.

(2) During the nine months ended September 30, 2024, we issued 936,544 unrestricted common units to the LTIP participants.

The remaining vested units were settled in cash to satisfy tax withholding.

LTIP expense for grants of restricted units was $ 2.3 million and $ 2.7 million for the three months ended June 30, 2024 and 2023, respectively, and $ 4.4 million and $ 4.9 million for the six months ended June 30, 2024 and 2023, respectively.

The total obligation associated with LTIP grants of restricted units as of June 30, 2024 was $ 13.5 million and is included in the partners' capital Limited partners-common unitholders line item on our condensed consolidated balance sheets.

As of June 30, 2024, there was $ 14.2 million in total unrecognized compensation expense related to the non-vested LTIP restricted unit grants that are expected to vest.

LTIP expense for grants of restricted units was $ 2.4 million and $ 2.7 million for the three months ended September 30, 2024 and 2023, respectively, and $ 6.8 million and $ 7.7 million for the nine months ended September 30, 2024 and 2023, respectively.

The total obligation associated with LTIP grants of restricted units as of September 30, 2024 was $ 15.9 million and is included in the partners' capital Limited partners-common unitholders line item on our condensed consolidated balance sheets.

As of September 30, 2024, there was $ 11.7 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.

2 unchanged sentences

Number of units

Weighted average grant date fair value per unit

Weighted average fair value per unit

Intrinsic value

1 unchanged sentence

Phantom units outstanding as of January 1, 2024

Phantom units outstanding as of June 30, 2024

Total SERP and Directors' Deferred Compensation Plan expense was $ 0.7 million and $ 0.6 million for the three months ended June 30, 2024 and 2023, respectively, and $ 1.3 million and $ 1.2 million for the six months ended June 30, 2024 and 2023, respectively.

As of June 30, 2024, the total obligation associated with the SERP and Directors' Deferred Compensation Plan was $ 17.7 million and is included in the partners' capital Limited partners-common unitholders line item on our condensed consolidated balance sheets.

Phantom units outstanding as of September 30, 2024

(1) During the nine months ended September 30, 2024, we purchased 54,152 ARLP common units on the open market to settle the account of a participant under the SERP.

Units purchased and delivered to the participant were net of units settled in cash to satisfy tax withholding obligations.

Total SERP and Directors' Deferred Compensation Plan expense was $ 0.7 million and $ 0.6 million for the three months ended September 30, 2024 and 2023, respectively, and $ 2.0 million and $ 1.8 million for the nine months ended September 30, 2024 and 2023, respectively.

As of September 30, 2024, the total obligation associated with the SERP and Directors' Deferred Compensation Plan was $ 16.5 million and is included in the partners' capital Limited partners-common unitholders line item on 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)

12 unchanged sentences

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.

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 and (d) the Hamilton County Coal, LLC mining complex.

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 Coal, LLC mining complex and (d) the Hamilton County Coal, LLC mining complex.

The segment also includes our Mt.

1 unchanged sentence

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, LLC mining complex.

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 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 11 – Equity Investments).

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 63 % of the coal sold by our coal operations' mines is leased from our Coal Royalties entities.

Approximately 63 % of the coal sold by our mines is leased from our Coal Royalties entities.

Other, Corporate and Elimination includes marketing and administrative activities, the Matrix Group, our investments in Francis, Infinitum, NGP ET IV, and Ascend (see Note 11 – Equity 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) and our crypto-mining activities.

4 unchanged sentences

(in thousands)

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Revenues - Outside (1)

4 unchanged sentences

Capital expenditures (4)

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Revenues - Outside (1)

4 unchanged sentences

Capital expenditures (4)

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Revenues - Outside (1)

4 unchanged sentences

Capital expenditures (4)

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

Revenues - Outside (1)

5 unchanged sentences

(1) Revenues included in the Other, Corporate and Elimination column are attributable to intercompany eliminations, which are primarily intercompany coal royalty eliminations, outside revenues at the Matrix Group and awarded digital assets received for our crypto-mining activities.

(2) Segment Adjusted EBITDA Expense (a non-GAAP financial measure) 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 such as certain litigation accruals.

Transportation expenses are excluded as these expenses are passed through to our customers and, consequently, we do not realize any gain or loss on transportation revenues.

4 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

2 unchanged sentences

Outside coal purchases

Other expense

Other expense (income)

Segment Adjusted EBITDA Expense

(3) Segment Adjusted EBITDA (a non-GAAP financial measure) is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses modified for certain items that we characterize as unrepresentative of our ongoing operations, such as the change in fair value of digital assets and certain litigation accruals.

(3) Segment Adjusted EBITDA (a non-GAAP financial measure) is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses adjusted for certain items that we characterize as unrepresentative of our ongoing operations.

Segment Adjusted EBITDA is a key component of consolidated EBITDA, which is used as a supplemental financial measure by management and by external users of our financial statements such as investors, commercial banks, research analysts and others.

4 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

8 unchanged sentences

Consolidated Segment Adjusted EBITDA

(4) Capital expenditures exclude $ 72.3 million paid for the JC Resources Acquisition for the six months ended June 30, 2023, $ 2.9 million and $ 1.1 million paid towards oil & gas reserve acquisitions for the three months ended June 30, 2024 and 2023, respectively, and $ 4.7 million and $ 3.9 million paid towards oil & gas reserve acquisitions for the six months ended June 30, 2024 and 2023, respectively (See Note 3 – Acquisitions) .

(4) Capital expenditures exclude $ 72.3 million paid for the JC Resources Acquisition for the nine months ended September 30, 2023, $ 10.5 million and $ 10.0 million paid towards oil & gas reserve acquisitions for the three months ended September 30, 2024 and 2023, respectively, and $ 15.2 million and $ 13.9 million paid towards oil & gas reserve acquisitions for the nine months ended September 30, 2024 and 2023, respectively (See Note 3 – Acquisitions) .

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