ALLIANCE RESOURCE PARTNERS LP 10-Q

ITEM 1. FINANCIAL STATEMENTS ​ ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except unit data) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ ​ 2025 2024 ​ ASSETS ​ ​ ​ ​ ​ CURRENT ASSETS: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 81,313 ​ $ 136,962 ​ Trade receivables (net of allowance of $ 2,212 and $ 2,087 , respectively) ​ 177,467 ​ 166,829 ​ Other receivables ​ 10,158 ​ 10,158 ​ Inventories, net ​ 138,786 ​ 120,661 ​ Advance royalties ​ 10,312 ​ 11,422 ​ Digital assets ​ 42,323 ​ 45,037 ​ Prepaid expenses and other assets 16,187 22,161 ​ Total current assets ​ 476,546 ​ 513,230 ​ PROPERTY, PLANT AND EQUIPMENT: ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment ​ 4,515,202 ​ 4,435,535 ​ Less accumulated depreciation, depletion and amortization ​ ( 2,334,891 ) ​ ( 2,269,265 ) ​ Total property, plant and equipment, net ​ 2,180,311 ​ 2,166,270 ​ OTHER ASSETS: ​ ​ ​ ​ ​ ​ ​ Advance royalties ​ 77,773 ​ 70,264 ​ Equity method investments ​ 33,555 ​ 35,532 ​ Equity securities ​ ​ 92,541 ​ 92,541 ​ Operating lease right-of-use assets ​ ​ 16,626 ​ ​ 15,871 ​ Other long-term assets ​ 25,383 ​ 22,022 ​ Total other assets ​ 245,878 ​ 236,230 ​ TOTAL ASSETS ​ $ 2,902,735 ​ $ 2,915,730 ​ ​ ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND PARTNERS' CAPITAL ​ ​ ​ ​ ​ ​ ​ CURRENT LIABILITIES: ​ ​ ​ ​ ​ ​ ​ Accounts payable ​ $ 104,528 ​ $ 98,188 ​ Accrued taxes other than income taxes ​ 21,569 ​ 21,051 ​ Accrued payroll and related expenses ​ 26,327 ​ 26,946 ​ Accrued interest ​ 10,350 ​ 1,821 ​ Workers' compensation and pneumoconiosis benefits ​ 14,838 ​ 14,838 ​ Other current liabilities ​ 46,510 ​ 48,023 ​ Current maturities, long-term debt, net ​ 22,807 ​ 22,275 ​ Total current liabilities ​ 246,929 ​ 233,142 ​ LONG-TERM LIABILITIES: ​ ​ ​ ​ ​ ​ ​ Long-term debt, excluding current maturities, net ​ 444,858 ​ 450,885 ​ Pneumoconiosis benefits ​ 121,598 ​ 120,152 ​ Workers' compensation ​ 37,818 ​ 37,177 ​ Asset retirement obligations ​ 156,145 ​ 155,156 ​ Long-term operating lease obligations ​ 14,345 ​ 13,638 ​ Deferred income tax liabilities ​ 28,808 ​ 29,353 ​ Other liabilities ​ 20,774 ​ 22,694 ​ Total long-term liabilities ​ 824,346 ​ 829,055 ​ Total liabilities ​ 1,071,275 ​ 1,062,197 ​ ​ ​ ​ ​ ​ ​ ​ ​ COMMITMENTS AND CONTINGENCIES - (NOTE 11) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PARTNERS' CAPITAL: ​ ​ ​ ​ ​ ​ ​ ARLP Partners' Capital: ​ ​ ​ ​ ​ ​ ​ Limited Partners - Common Unitholders 128,428,024 and 128,061,981 units outstanding, respectively ​ 1,845,824 ​ 1,867,850 ​ Accumulated other comprehensive loss ​ ( 34,833 ) ​ ( 35,103 ) ​ Total ARLP Partners' Capital ​ 1,810,991 ​ 1,832,747 ​ Noncontrolling interest ​ ​ 20,469 ​ ​ 20,786 ​ Total Partners' Capital ​ ​ 1,831,460 ​ ​ 1,853,533 ​ TOTAL LIABILITIES AND PARTNERS' CAPITAL ​ $ 2,902,735 ​ $ 2,915,730 ​ ​ See notes to condensed consolidated financial statements. 1 Table of Contents ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES ​ CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except unit and per unit data) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ 2025 2024 SALES AND OPERATING REVENUES: ​ ​ ​ ​ ​ ​ ​ Coal sales ​ $ 468,511 ​ $ 561,879 ​ Oil & gas royalties ​ ​ 36,084 ​ ​ 37,030 ​ Transportation revenues ​ 10,200 ​ 30,753 ​ Other revenues ​ 25,673 ​ 22,035 ​ Total revenues ​ 540,468 ​ 651,697 ​ ​ ​ ​ ​ ​ ​ ​ ​ EXPENSES: ​ ​ ​ ​ ​ ​ ​ Operating expenses (excluding depreciation, depletion and amortization) ​ 339,436 ​ 363,859 ​ Transportation expenses ​ 10,200 ​ 30,753 ​ Outside coal purchases ​ 7,345 ​ 9,112 ​ General and administrative ​ 20,580 ​ 22,129 ​ Depreciation, depletion and amortization ​ 68,629 ​ 65,549 ​ Total operating expenses ​ 446,190 ​ 491,402 ​ ​ ​ ​ ​ ​ ​ ​ ​ INCOME FROM OPERATIONS ​ 94,278 ​ 160,295 ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense (net of interest capitalized of $ 4,488 and $ 2,298 , respectively) ​ ( 8,434 ) ​ ( 7,749 ) ​ Interest income ​ 867 ​ 1,276 ​ Net loss on equity method investments ​ ( 2,006 ) ​ ( 553 ) ​ Change in fair value of digital assets ​ ( 5,574 ) ​ 11,853 ​ Other income (expense) ​ 611 ​ ( 606 ) ​ INCOME BEFORE INCOME TAXES ​ 79,742 ​ 164,516 ​ ​ ​ ​ ​ ​ ​ ​ ​ INCOME TAX EXPENSE ​ 4,182 ​ 4,949 ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME ​ ​ 75,560 ​ ​ 159,567 ​ ​ ​ ​ ​ ​ ​ ​ ​ LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST ​ ( 1,577 ) ​ ( 1,510 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME ATTRIBUTABLE TO ARLP ​ $ 73,983 ​ $ 158,057 ​ ​ ​ ​ ​ ​ ​ ​ ​ EARNINGS PER LIMITED PARTNER UNIT - BASIC AND DILUTED ​ $ 0.57 ​ $ 1.21 ​ ​ ​ ​ ​ ​ ​ ​ ​ WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING – BASIC AND DILUTED ​ 128,265,338 ​ 127,670,897 ​ ​ See notes to condensed consolidated financial statements . ​ 2 Table of Contents ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES ​ CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ 2025 2024 ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME ​ $ 75,560 ​ $ 159,567 ​ ​ ​ ​ ​ ​ ​ ​ ​ OTHER COMPREHENSIVE INCOME: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Defined benefit pension plan ​ ​ ​ ​ ​ ​ ​ Amortization of prior service cost (1) ​ ​ 3 ​ ​ 47 ​ Amortization of net actuarial loss (1) ​ — ​ 37 ​ Total defined benefit pension plan adjustments ​ 3 ​ 84 ​ ​ ​ ​ ​ ​ ​ ​ ​ Pneumoconiosis benefits ​ ​ ​ ​ ​ ​ ​ Amortization of net actuarial loss (1) ​ 232 ​ 839 ​ Total pneumoconiosis benefits adjustments ​ 232 ​ 839 ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency translation adjustment ​ ​ 35 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ OTHER COMPREHENSIVE INCOME ​ 270 ​ 923 ​ ​ ​ ​ ​ ​ ​ ​ ​ COMPREHENSIVE INCOME ​ ​ 75,830 ​ ​ 160,490 ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: Comprehensive income attributable to noncontrolling interest ​ ​ ( 1,577 ) ​ ​ ( 1,510 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ COMPREHENSIVE INCOME ATTRIBUTABLE TO ARLP ​ $ 74,253 ​ $ 158,980 ​ (1) Amortization of prior service cost and net actuarial loss is included in the computation of net periodic benefit cost (credit) (see Notes 9 and 10 for additional details). ​ See notes to condensed consolidated financial statements. ​ 3 Table of Contents ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES ​ CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ 2025 2024 ​ ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM OPERATING ACTIVITIES ​ $ 145,686 ​ $ 209,673 ​ ​ ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM INVESTING ACTIVITIES: ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment: ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ ( 86,776 ) ​ ( 123,846 ) ​ Change in accounts payable and accrued liabilities ​ ( 6,196 ) ​ 4,331 ​ Proceeds from sale of property, plant and equipment ​ 241 ​ 164 ​ Contributions to equity method investments ​ ( 878 ) ​ ( 625 ) ​ Oil & gas reserve asset acquisitions ​ ​ ( 33 ) ​ ​ ( 1,822 ) ​ Other ​ 580 ​ 1,286 ​ Net cash used in investing activities ​ ( 93,062 ) ​ ( 120,512 ) ​ CASH FLOWS FROM FINANCING ACTIVITIES: ​ ​ ​ ​ ​ ​ ​ Borrowings under securitization facility ​ ​ 4,000 ​ 75,000 ​ Payments under securitization facility ​ ​ ( 4,000 ) ​ ( 30,000 ) ​ Proceeds from equipment financings ​ ​ — ​ 54,626 ​ Payments on equipment financings ​ ​ ( 3,118 ) ​ ( 1,976 ) ​ Borrowings under revolving credit facilities ​ — ​ 20,000 ​ Payments under revolving credit facilities ​ — ​ ( 20,000 ) ​ Payments on long-term debt ​ ( 3,516 ) ​ ( 4,688 ) ​ Payments for tax withholdings related to settlements under deferred compensation plan ​ ( 7,082 ) ​ ( 13,292 ) ​ Distributions paid to Partners ​ ​ ( 90,891 ) ​ ( 91,246 ) ​ Other ​ ( 3,701 ) ​ ( 3,441 ) ​ Net cash used in financing activities ​ ( 108,308 ) ​ ( 15,017 ) ​ Effect of exchange rate changes on cash and cash equivalents ​ ​ 35 ​ — ​ NET CHANGE IN CASH AND CASH EQUIVALENTS ​ ( 55,649 ) ​ 74,144 ​ CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ​ 136,962 ​ 59,813 ​ CASH AND CASH EQUIVALENTS AT END OF PERIOD ​ $ 81,313 ​ $ 133,957 ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL CASH FLOW INFORMATION: ​ ​ ​ ​ ​ ​ ​ Cash paid for interest ​ $ 3,247 ​ $ 3,248 ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL NON-CASH ACTIVITY: ​ ​ ​ ​ ​ ​ Accounts payable for purchase of property, plant and equipment ​ $ 17,532 ​ $ 18,917 ​ Right-of-use assets acquired by operating lease ​ $ 1,571 ​ $ — ​ Market value of common units issued under deferred compensation plans before tax withholding requirements ​ $ 17,068 ​ $ 32,566 ​ ​ See notes to condensed consolidated financial statements. ​ 4 Table of Contents ​ ​ ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES ​ NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) ​ 1. ORGANIZATION AND PRESENTATION ​ Significant Relationships Referenced in Notes to Condensed Consolidated Financial Statements ​ ● References to “we,” “us,” “our” or “ARLP Partnership” mean the business and operations of Alliance Resource Partners, L.P., the parent company, as well as its consolidated subsidiaries. ● References to “ARLP” mean Alliance Resource Partners, L.P., individually as the parent company, and not on a consolidated basis. ● References to “MGP” mean Alliance Resource Management GP, LLC, ARLP’s general partner. ● References to “Mr. Craft” mean Joseph W. Craft III, the Chairman, President and Chief Executive Officer of MGP. ● References to “Intermediate Partnership” mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P. ● References to “Alliance Coal” mean Alliance Coal, LLC, an indirect wholly owned subsidiary of ARLP. ● References to “Alliance Minerals” mean Alliance Minerals, LLC, an indirect wholly owned subsidiary of ARLP. ● References to “Alliance Resource Properties” mean Alliance Resource Properties, LLC, an indirect wholly owned subsidiary of ARLP. ​ Organization ​ ARLP is a Delaware limited partnership listed on the NASDAQ Global Select Market under the ticker symbol “ARLP.” ARLP was formed in May 1999 and completed its initial public offering on August 19, 1999 when it acquired substantially all of the coal production and marketing assets of Alliance Resource Holdings, Inc., a Delaware corporation, and its subsidiaries. We are managed by our general partner, MGP, a Delaware limited liability company which holds a non-economic general partner interest in ARLP. ​ 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 March 31, 2025 and December 31, 2024 and the results of our operations, comprehensive income and cash flows for the three months ended March 31, 2025 and 2024. All intercompany transactions and accounts have been eliminated. ​ These condensed consolidated financial statements and notes are prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting and do not include all the information normally included with financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) of the United States. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024. ​ These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of the results for the periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2025. ​ Use of Estimates ​ The preparation of the ARLP Partnership’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in our condensed consolidated financial statements. Actual results could differ from those estimates. ​ ​ 5 Table of Contents 2. 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 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2023-09. We do not expect ASU 2023-09 to have a material effect on our consolidated financial statements 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”). ASU 2024-03 requires the disclosure of additional information about specific expense categories in the notes to the financial statements to provide enhanced transparency into the nature and function of expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact ASU 2024-03 will have on our consolidated financial statements and related disclosures. ​ 3. VARIABLE INTEREST ENTITIES ​ AllDale I & II and Cavalier Minerals ​ We own the general partner interests and, including the limited partner interests we hold through our ownership in Cavalier Minerals JV, LLC (“Cavalier Minerals”), approximately 97 % of the limited partner interests in AllDale Minerals LP (“AllDale I”) and AllDale Minerals II, LP (“AllDale II”, and collectively with AllDale I, “AllDale I & II”). As the general partner of AllDale I & II, we are entitled to receive 20.0 % of all distributions from AllDale I & II with the remaining 80.0 % allocated to limited partners based upon ownership percentages. ​ Cavalier Minerals owns approximately 72 % of the limited partner interests in AllDale I & II. We own the managing member interest and a 96 % member interest in Cavalier Minerals. Bluegrass Minerals Management, LLC (“Bluegrass Minerals”) owns a 4 % member interest in Cavalier Minerals and a profits interest which entitles it to receive distributions equal to 25 % of all distributions (including in liquidation) after all members have recovered their investment. All members have recovered their investment and Bluegrass Minerals began receiving its profits interest distributions in late 2022. ​ We have concluded that AllDale I, AllDale II and Cavalier Minerals are variable interest entities (“VIEs”) which we consolidate as the primary beneficiary because we have the power to direct the activities that most significantly impact the economic performance of AllDale I, AllDale II and Cavalier Minerals in addition to having substantial equity ownership. ​ Our share of Cavalier Minerals’ investment in AllDale I & II is eliminated in consolidation and Bluegrass Minerals’ investment in Cavalier Minerals is accounted for as noncontrolling ownership interest on our condensed consolidated balance sheets. Additionally, earnings attributable to Bluegrass Minerals are recognized as noncontrolling interest in our condensed consolidated statements of income. ​ 6 Table of Contents The following table presents the carrying amounts and classification of AllDale I & II’s assets and liabilities included in our condensed consolidated balance sheets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ ​ 2025 2024 ​ Assets (liabilities): (in thousands) Cash and cash equivalents ​ $ 6,212 ​ $ 5,154 ​ Trade receivables ​ 11,954 ​ 11,209 ​ Total property, plant and equipment, net ​ 368,966 ​ 373,093 ​ Accounts payable ​ ​ ( 216 ) ​ ​ ( 221 ) ​ Due to affiliates ​ ( 116 ) ​ ​ — ​ Accrued taxes other than income taxes ​ ( 406 ) ​ ​ ( 870 ) ​ ​ AllDale III ​ 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. Alliance Minerals’ investment in AllDale III is subject to a 25 % profits interest for the general partner that is subject to a return hurdle equal to the greater of 125 % of cumulative capital contributions and a 10 % internal rate of return, and following an 80/20 “catch-up” provision for the general partner. ​ We have concluded that AllDale III is a VIE that we do not consolidate. AllDale III is structured as a limited partnership with the limited partners (1) not having the ability to remove the general partner and (2) not participating significantly in operational decisions. 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 March 31, 2025, the carrying value of our investment in AllDale III was $ 21.9 million. ​ NGP ET IV ​ On June 2, 2022, we committed to purchase $ 25.0 million of limited partner interests in NGP Energy Transition, L.P. (“NGP ET IV”), a private equity fund sponsored by NGP and focused on investments that are part of the global transition toward a lower carbon economy. This commitment represents a 3.6 % interest in NGP ET IV. As of March 31, 2025, we have funded $ 10.4 million of this commitment. ​ We have concluded that NGP ET IV is a VIE that we do not consolidate. NGP ET IV is structured as a limited partnership with limited partners (i) not having the ability to remove the general partner and (ii) not participating significantly in operational decisions. 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 March 31, 2025, the carrying value of our investment in NGP ET IV was $ 9.3 million. ​ Gavin Generation ​ In February 2025, we committed to invest up to $ 25.0 million of limited partner interests in Gavin Generation Holdings A, LP (“Gavin Generation”), which is sponsored by a private equity firm. Gavin Generation intends to own, indirectly, an interest in a joint venture holding company formed with a third party that plans to indirectly acquire, own and operate a coal-fired power plant. This commitment represents an interest of approximately 5.0 % in Gavin Generation (based on total commitments). 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. As of March 31, 2025, we have no t funded any portion of our capital commitment. ​ We have concluded that Gavin Generation is a variable interest entity that we do not consolidate. Gavin Generation is structured as a limited partnership with the limited partners (1) not having the ability to remove the general partner and (2) not participating significantly in operational decisions. 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. ​ 7 Table of Contents 4. FAIR VALUE MEASUREMENTS ​ The following table summarizes certain fair value measurements within the hierarchy not included elsewhere in these notes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ ​ Carrying Value Level 1 Level 2 Level 3 ​ ​ (in thousands) ​ March 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recorded on a recurring basis: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Digital assets ​ $ 42,323 ​ $ 42,323 ​ $ — ​ $ — ​ Contingent consideration ​ $ 11,324 ​ $ — ​ $ — ​ $ 11,324 ​ Additional disclosures: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt ​ $ 483,754 ​ $ — ​ $ 508,931 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recorded on a recurring basis: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Digital assets ​ $ 45,037 ​ $ 45,037 ​ $ — ​ $ — ​ Contingent consideration ​ $ 13,100 ​ $ — ​ $ — ​ $ 13,100 ​ Additional disclosures: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt ​ $ 490,387 ​ $ — ​ $ 523,461 ​ $ — ​ ​ 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 is based on an exchange quoted price. See Note 6 – Digital Assets for more information on our digital assets. ​ The fair value measurement of our contingent consideration liability is determined using an option approach methodology simulation based on significant inputs not observable in active markets representing a Level 3 fair value measurement under the fair value hierarchy. Our contingent consideration liability is associated with our acquisition of our 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 $ 11.4 million under this contingent consideration agreement and nothing under the overriding royalty agreement as of March 31, 2025. ​ 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. See Note 8 – Long-Term Debt for additional information on our long-term debt. ​ Quantitative Information about Level 3 Fair Value Measurements ​ Our option approach methodology simulation 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. 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 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. ​ 8 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ Valuation Technique(s) Unobservable Input Range/Amount (Average) (a) ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent Consideration ​ Option approach methodology simulation ​ Cost of Debt ​ 6.51 % - 8.56 % ​ ​ ​ ​ ​ Coal price volatility ​ 6.2 % ​ ​ ​ ​ ​ Market price of risk adjustment (annual) ​ 6.2 % ​ December 31, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent Consideration ​ Option approach methodology simulation ​ Cost of Debt ​ 6.51 % - 8.56 % ​ ​ ​ ​ ​ Coal price volatility ​ 6.2 % ​ ​ ​ ​ ​ Market price of risk adjustment (annual) ​ 6.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ (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 contingent consideration liability: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ 2025 ​ 2024 ​ ​ (in thousands) ​ Beginning balance ​ $ 13,100 ​ $ 9,900 ​ Payments ​ ​ ( 1,776 ) ​ ​ ( 1,431 ) ​ Ending balance ​ $ 11,324 ​ $ 8,469 ​ ​ ​ 5. INVENTORIES ​ Inventories consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ ​ 2025 2024 ​ ​ (in thousands) ​ Coal ​ $ 56,903 ​ $ 37,290 ​ Finished goods (net of reserve for obsolescence of $ 2,617 and $ 2,481 , respectively) ​ ​ 12,881 ​ ​ 14,197 ​ Work in process ​ ​ 1,332 ​ ​ 1,560 ​ Raw materials ​ ​ 7,930 ​ ​ 7,192 ​ ​ ​ ​ 79,046 ​ ​ 60,239 ​ Supplies (net of reserve for obsolescence of $ 6,562 and $ 6,409 , respectively) ​ 59,740 ​ 60,422 ​ Total inventories, net ​ $ 138,786 ​ $ 120,661 ​ ​ The above balances reflect lower of cost or net realizable value adjustments to our coal inventories of $ 5.7 million and $ 24.6 million as of March 31, 2025 and December 31, 2024, respectively. The adjustment as of March 31, 2025 is primarily a result of lower coal sale prices and higher cost per ton primarily due to a long wall move and operational difficulties at the Mettiki Coal, LLC and Mettiki Coal (WV), LLC (collectively “Mettiki”) mining complexes. 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 County Coal, LLC (“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. ​ 9 Table of Contents 6. DIGITAL ASSETS ​ The following table sets forth our digital assets as shown on the condensed consolidated balance sheet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 ​ December 31, 2024 ​ ​ ​ Units ​ Cost Basis ​ Fair Value ​ Units ​ Cost Basis ​ Fair Value ​ Digital assets: ​ (in thousands, except unit data) ​ Bitcoin ​ ​ 512.55 ​ $ 21,645 ​ $ 42,323 ​ ​ 481.89 ​ $ 18,748 ​ $ 45,037 ​ Total ​ ​ ​ ​ $ 21,645 ​ $ 42,323 ​ ​ ​ ​ $ 18,748 ​ $ 45,037 ​ ​ 7. EQUITY INVESTMENT S ​ Equity Method Investments ​ The changes in our equity method investments were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ March 31, ​ ​ 2025 2024 ​ ​ ​ (in thousands) ​ Beginning balance ​ ​ $ 35,532 ​ $ 46,503 ​ Contributions ​ ​ ​ 878 ​ ​ 625 ​ Net loss on equity method investments ​ ​ ​ ( 2,006 ) ​ ​ ( 553 ) ​ Distributions received ​ ​ ​ ( 849 ) ​ ​ ( 882 ) ​ Ending balance ​ ​ $ 33,555 ​ $ 45,693 ​ ​ Net loss on equity method investments represents our share of the income or loss of the equity method investments. ​ Infinitum ​ During 2022, we purchased $ 42.0 million of Series D Preferred Stock (“Series D Preferred Stock”) in Infinitum Electric, Inc. (“Infinitum”), a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators. On September 8, 2023, we purchased $ 24.6 million of Series E Preferred Stock (“Series E Preferred Stock” and, together with the “Series D Preferred Stock,” the “Infinitum Preferred Stock”) in Infinitum. 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. Therefore, we use a measurement alternative other than fair value to account for our investment. ​ Ascend ​ On August 22, 2023, we purchased $ 25.0 million of Series D Preferred Stock (the “Ascend Preferred Stock”) in Ascend Elements, Inc. (“Ascend”), a U.S.-based manufacturer and recycler of sustainable, engineered battery materials for electric vehicles. The Ascend Preferred Stock provides for non-cumulative dividends when and if declared by Ascend’s board of directors. Each share is convertible, at any time, at our option, into shares of common stock of Ascend. We account for our ownership interest in Ascend 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 Ascend 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, Ascend depends primarily on capital contributions to meet its operating and debt obligations. Additional capital contributions or conversion of our investment into common stock of Ascend could impact the preference of our investment relative to other investments in Ascend or dilute our holdings. If Ascend is unable to raise sufficient funds or if our investment loses preference or becomes diluted due to new capital contributions, it could have an adverse effect on our investment. ​ 10 Table of Contents 8. LONG-TERM DEBT ​ Long-term debt consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unamortized Discount and ​ ​ ​ Principal ​ Debt Issuance Costs ​ ​ ​ March 31, ​ December 31, ​ March 31, ​ December 31, ​ ​ 2025 2024 2025 2024 ​ ​ (in thousands) ​ Revolving credit facility ​ $ — ​ $ — ​ $ ( 6,676 ) ​ $ ( 7,231 ) ​ Term loan ​ 42,188 ​ 45,703 ​ ( 1,178 ) ​ ( 1,276 ) ​ 8.625 % Senior notes due 2029 ​ ​ 400,000 ​ ​ 400,000 ​ ​ ( 8,235 ) ​ ​ ( 8,720 ) ​ Securitization facility ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ February 2024 equipment financing ​ ​ 41,566 ​ ​ 44,684 ​ ​ — ​ ​ — ​ ​ ​ 483,754 ​ 490,387 ​ ( 16,089 ) ​ ( 17,227 ) ​ Less current maturities ​ ( 27,201 ) ​ ( 26,669 ) ​ 4,394 ​ 4,394 ​ Total long-term debt ​ $ 456,553 ​ $ 463,718 ​ $ ( 11,695 ) ​ $ ( 12,833 ) ​ ​ Credit Facility ​ On January 13, 2023, Alliance Coal, as borrower, entered into a Credit Agreement with various financial institutions which was amended on June 12, 2024 (the “Credit Agreement”). The Credit Agreement provides for a $ 425.0 million revolving credit facility which includes a sublimit of $ 15.0 million for swingline borrowings and permits the issuance of letters of credit up to the full amount of the Credit Facility (the “Revolving Credit Facility”), and for a term loan in an aggregate principal amount of $ 75.0 million (the “Term Loan”). The Revolving Credit Facility also includes an incremental facility providing for an increase of $ 100.0 million at our option subject to lenders agreeing to participate in such incremental facility. The Credit Agreement matures on March 9, 2028, at which time the aggregate outstanding principal amount of all Revolving Credit Facility advances and all Term Loan advances are required to be repaid in full. Interest is payable quarterly, with principal on the Term Loan due in quarterly installments equal to 6.25 % of the outstanding balance of the Term Loan on the Credit Agreement amendment date beginning with the quarter ended June 30, 2024. ​ The Credit Agreement is guaranteed by ARLP and certain of its subsidiaries, including the Intermediate Partnership and most of the direct and indirect subsidiaries of Alliance Coal (the “Subsidiary Guarantors”). The Credit Agreement also is secured by substantially all of the assets of the Subsidiary Guarantors and Alliance Coal. 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 applicable margin for borrowings under the Credit Agreement are determined by reference to the Consolidated Debt to Consolidated Cash Flow Ratio. For borrowings under the Term Loan, we elected the one-month term rate, with applicable margin, which was 7.68 % as of March 31, 2025. At March 31, 2025, we had $ 41.0 million of letters of credit outstanding with $ 384.0 million available for borrowing under the Revolving Credit Facility. We incur an annual commitment fee of 0.50 % on the undrawn portion of the Revolving Credit Facility. We utilize the Credit Agreement, as appropriate, for working capital requirements, capital expenditures and investments, scheduled debt payments and distribution payments. ​ The Credit Agreement contains various restrictions affecting Alliance Coal and its subsidiaries, including, among other things, restrictions on incurrence of additional indebtedness and liens, sale of assets, investments, mergers and consolidations and transactions with affiliates. 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. 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 0.17 to 1.0, 0.98 11 Table of Contents to 1.0 and 34.52 to 1.0, respectively, for the trailing twelve months ended March 31, 2025. We were in compliance with the covenants of the Credit Agreement as of March 31, 2025 and anticipate remaining in compliance with the covenants. ​ 8.625% Senior Notes due 2029 ​ On June 12, 2024, the Intermediate Partnership and Alliance Resource Finance Corporation (as co-issuer), a wholly owned subsidiary of the Intermediate Partnership (“Alliance Finance”), issued an aggregate principal amount of $ 400.0 million of senior unsecured notes due 2029 (the “2029 Senior Notes”) in a private placement to qualified institutional buyers. The 2029 Senior Notes have a term of five years , maturing on June 15, 2029 and accrue interest at an annual rate of 8.625 % . Interest is payable semi-annually in arrears on each June 15 and December 15. The 2029 Senior Notes are guaranteed, jointly and severally, on a senior unsecured basis by ARLP, certain of ARLP’s wholly owned oil and gas and coal royalties subsidiaries and each of ARLP’s subsidiaries that guarantee obligations under the Credit Agreement. The indenture governing the 2029 Senior Notes contains 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. ​ At any time prior to June 15, 2026, the issuers may redeem up to 35 % of the aggregate principal amount of the 2029 Senior Notes at a redemption price equal to 108.625 % of the principal amount redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, with an amount of cash not greater than the net proceeds from one or more equity offerings. The issuers may also redeem all or a part of the 2029 Senior Notes at any time on or after June 15, 2026, at the redemption prices set forth in the indenture, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. At any time prior to June 15, 2026, the issuers may redeem the 2029 Senior Notes at a redemption price equal to the principal amount plus a “make-whole” premium, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. ​ In addition, if prior to June 15, 2026, a Specified Minerals Disposition (as defined in the indenture governing the 2029 Senior Notes and which involves oil and gas mineral interests) occurs, the issuers will be required to make an offer to purchase up to 40 % of the aggregate principal amount of 2029 Senior Notes then outstanding at an offer price in cash in an amount equal to 108.625 % of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase. ​ 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. 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. After the sale, Alliance Coal, as servicer of the assets, collects the receivables on behalf of AROP Funding. The Securitization Facility bears interest based on a short-term bank yield index. On March 31, 2025, we had $ 14.8 million of letters of credit outstanding with $ 49.0 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. ​ February 2024 Equipment Financing ​ On February 28, 2024, Alliance Coal entered into an equipment financing arrangement accounted for as debt, wherein Alliance Coal received $ 54.6 million in exchange for conveying its interest in certain equipment owned indirectly by Alliance Coal and entering into a master lease agreement for that equipment (the “February 2024 Equipment Financing”). The February 2024 Equipment Financing contains customary terms and events of default and provides for forty-eight monthly payments with an implicit interest rate of 8.29 % , maturing on February 28, 2028. Upon maturity, the equipment will revert to Alliance Coal. ​ 12 Table of Contents 9. WORKERS’ COMPENSATION AND PNEUMOCONIOSIS ​ The changes in the workers’ compensation liability, including current and long-term liability balances, for each of the periods presented were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ ​ 2025 2024 ​ ​ ​ (in thousands) ​ Beginning balance ​ $ 47,870 ​ $ 47,975 ​ Changes in accruals ​ 3,376 ​ 3,125 ​ Payments ​ ( 3,302 ) ​ ( 4,048 ) ​ Interest accretion ​ 567 ​ 509 ​ Ending balance ​ $ 48,511 ​ $ 47,561 ​ ​ 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. 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 policy. Our receivables for traumatic injury claims under this policy as of March 31, 2025 are $ 3.7 million and are included in Other long-term assets on our condensed consolidated balance sheet. ​ Certain of our mine operating entities are liable under state statutes and the Federal Coal Mine Health and Safety Act of 1969, as amended, to pay pneumoconiosis, or black lung, benefits to eligible employees and former employees and their dependents. Components of the net periodic benefit cost for each of the periods presented are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ ​ 2025 2024 ​ ​ (in thousands) ​ Service cost ​ $ 859 ​ $ 861 Interest cost (1) ​ 1,672 ​ 1,558 ​ Net amortization (1) ​ 226 ​ 839 ​ Net periodic benefit cost ​ $ 2,757 ​ $ 3,258 ​ (1) Interest cost and net amortization are included in the Other income (expense) line item within our condensed consolidated statements of income. ​ 10. 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 benefit formula for the Pension Plan is a fixed dollar unit based on years of service. Components of the net periodic benefit credit for each of the periods presented are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ ​ 2025 2024 ​ ​ (in thousands) ​ Interest cost ​ $ 1,310 ​ $ 1,259 ​ Expected return on plan assets ​ ( 1,709 ) ​ ( 1,765 ) ​ Amortization of prior service cost ​ ​ 3 ​ ​ 47 ​ Amortization of net loss ​ — ​ 37 ​ Net periodic benefit credit (1) ​ $ ( 396 ) ​ $ ( 422 ) ​ (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. 13 Table of Contents ​ We do not expect to make material contributions to the Pension Plan during 2025. ​ 11. 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. As a result of reaching this settlement, which is subject to and awaiting court approval, we have accrued $ 15.3 million as of March 31, 2025. Our $ 15.3 million accrual is included in the Other current liabilities line item on our condensed consolidated balance sheet. We believe our ultimate exposure, if any should litigation resume, will not be material to our results of operations or financial position; however, if our current belief as to the merit of the claims is not upheld if litigation were to resume, it is reasonably possible that the ultimate resolution of these matters could result in a potential loss that may be material to our results of operations. ​ We also have various other lawsuits, claims and regulatory proceedings incidental to our business that are pending against the ARLP Partnership. We record an accrual for a potential loss related to these matters when, in management’s opinion, such loss is probable and reasonably estimable. Based on known facts and circumstances, we believe the ultimate outcome of these outstanding lawsuits, claims and regulatory proceedings will not have a material adverse effect on our financial condition, results of operations or liquidity. However, if the results of these matters are different from management’s current expectations and in amounts greater than our accruals, such matters could have a material adverse effect on our business and operations. ​ 12. PARTNERS’ CAPITAL ​ Distributions ​ Distributions paid or declared during 2024 and 2025 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Payment Date Per Unit Cash Distribution Total Cash Distribution ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ February 14, 2024 ​ $ 0.70 ​ $ 91,246 ​ May 15, 2024 ​ ​ 0.70 ​ ​ 90,736 ​ August 14, 2024 ​ ​ 0.70 ​ ​ 90,725 ​ November 14, 2024 ​ ​ 0.70 ​ ​ 90,723 ​ Total ​ $ 2.80 ​ $ 363,430 ​ ​ ​ ​ ​ ​ ​ ​ ​ February 14, 2025 ​ $ 0.70 ​ $ 90,891 ​ May 15, 2025 (1) ​ ​ 0.70 ​ ​ ​ ​ Total ​ $ 1.40 ​ $ 90,891 ​ ​ (1) On April 28, 2025, we declared this quarterly distribution payable on May 15, 2025 to all unitholders of record as of May 8, 2025. ​ Unit Repurchase Program ​ In January 2023, the board of directors of MGP authorized a $ 93.5 million increase to the unit repurchase program, which had $ 6.5 million of available capacity remaining of the original $ 100.0 million authorized as of December 31, 2022. As a result, we were authorized to repurchase up to a total of $ 100.0 million of ARLP common units from that date. No units were repurchased during the three months ended March 31, 2025 and 2024, respectively. 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. ​ 14 Table of Contents Change in Partners’ Capital ​ The following tables present the quarterly change in Partners' Capital for the three months ended March 31, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Limited ​ Other ​ ​ ​ ​ ​ ​ ​ ​ ​ Limited Partner ​ Partners' ​ Comprehensive ​ Noncontrolling ​ Total Partners' ​ ​ Units Capital Income (Loss) Interest Capital ​ ​ (in thousands, except unit data) ​ Balance at January 1, 2025 128,061,981 ​ $ 1,867,850 ​ $ ( 35,103 ) ​ $ 20,786 ​ $ 1,853,533 ​ Comprehensive income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income — ​ 73,983 ​ — ​ ​ 1,577 75,560 ​ Other comprehensive income — ​ — ​ 270 ​ — 270 ​ Total comprehensive income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 75,830 ​ Settlement of deferred compensation plans ​ 366,043 ​ ​ ( 7,082 ) ​ ​ — ​ ​ — ​ ​ ( 7,082 ) ​ Common unit-based compensation — ​ 1,964 ​ ​ — ​ ​ — ​ ​ 1,964 ​ Distributions on deferred common unit-based compensation — ​ ( 1,247 ) ​ ​ — ​ ​ — ​ ​ ( 1,247 ) ​ Distributions from consolidated company to noncontrolling interest ​ — ​ ​ — ​ ​ — ​ ​ ( 1,894 ) ​ ​ ( 1,894 ) ​ Distributions to Partners — ​ ​ ( 89,644 ) ​ ​ — ​ ​ — ​ ​ ( 89,644 ) ​ Balance at March 31, 2025 ​ 128,428,024 ​ $ 1,845,824 ​ $ ( 34,833 ) ​ $ 20,469 ​ $ 1,831,460 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Limited ​ Other ​ ​ ​ ​ ​ ​ ​ ​ ​ Limited Partner ​ Partners' ​ Comprehensive ​ Noncontrolling ​ Total Partners' ​ ​ Units Capital Income (Loss) Interest Capital ​ ​ (in thousands, except unit data) ​ Balance at January 1, 2024 127,125,437 ​ $ 1,896,027 ​ $ ( 61,525 ) ​ $ 24,095 ​ $ 1,858,597 ​ Cumulative-effect adjustment ​ — ​ ​ 6,232 ​ ​ — ​ ​ — ​ ​ 6,232 ​ Comprehensive income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income — ​ 158,057 ​ — ​ ​ 1,510 159,567 ​ Actuarially determined long-term liability adjustments — ​ — ​ 923 ​ — 923 ​ Total comprehensive income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 160,490 ​ Settlement of deferred compensation plans ​ 936,544 ​ ​ ( 13,292 ) ​ ​ — ​ ​ — ​ ​ ( 13,292 ) ​ Common unit-based compensation — ​ 2,604 ​ ​ — ​ ​ — ​ ​ 2,604 ​ Distributions on deferred common unit-based compensation — ​ ( 2,261 ) ​ ​ — ​ ​ — ​ ​ ( 2,261 ) ​ Distributions from consolidated company to noncontrolling interest ​ — ​ ​ — ​ ​ — ​ ​ ( 1,981 ) ​ ​ ( 1,981 ) ​ Distributions to Partners — ​ ​ ( 88,985 ) ​ ​ — ​ ​ — ​ ​ ( 88,985 ) ​ Balance at March 31, 2024 128,061,981 ​ $ 1,958,382 ​ $ ( 60,602 ) ​ $ 23,624 ​ $ 1,921,404 ​ ​ ​ ​ 15 Table of Contents 13. COMMON UNIT-BASED COMPENSATION PLAN ​ Long-Term Incentive Plan ​ A summary of non-vested Long-Term Incentive Plan (“LTIP”) grants of restricted units is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of units Weighted average grant date fair value per unit Intrinsic value ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-vested grants at January 1, 2025 ​ 1,458,564 ​ $ 17.60 ​ $ 38,346 ​ Granted (1) 353,028 ​ ​ 26.92 ​ ​ ​ ​ Vested (2) ( 625,649 ) ​ 13.62 ​ ​ ​ ​ Forfeited ( 6,222 ) ​ 20.66 ​ ​ ​ ​ Non-vested grants at March 31, 2025 1,179,721 ​ 22.49 ​ ​ 32,183 ​ (1) The restricted units granted during 2025 have certain minimum-value guarantees per unit, regardless of whether the awards vest. (2) During the three months ended March 31, 2025, we issued 366,043 unrestricted common units to the LTIP participants. The remaining vested units were withheld to satisfy tax withholdings. ​ LTIP expense for grants of restricted units was $ 2.0 million for each of the three months ended March 31, 2025 and 2024. The total obligation associated with LTIP grants of restricted units as of March 31, 2025 was $ 10.3 million and is included in the partners’ capital Limited partners-common unitholders line item on our condensed consolidated balance sheets. As of March 31, 2025, there was $ 16.2 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. ​ 14. REVENUE FROM CONTRACTS WITH CUSTOMERS ​ The following table illustrates the disaggregation of our revenues by type, including a reconciliation to our segment presentation as presented in Note 17 – Segment Information. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal Operations ​ Royalties ​ Other, ​ ​ ​ ​ ​ ​ Illinois ​ ​ ​ ​ Corporate and ​ ​ ​ ​ Basin Appalachia Oil & Gas Coal Elimination Consolidated ​ ​ ​ (in thousands) ​ Three Months Ended March 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal sales ​ $ 333,234 ​ $ 135,277 ​ $ — ​ $ — ​ $ — ​ $ 468,511 ​ Oil & gas royalties ​ ​ — ​ ​ — ​ ​ 36,084 ​ ​ — ​ ​ — ​ ​ 36,084 ​ Coal royalties ​ ​ — ​ ​ — ​ ​ — ​ ​ 15,795 ​ ​ ( 15,795 ) ​ ​ — ​ Transportation revenues ​ ​ 6,863 ​ ​ 3,337 ​ ​ — ​ ​ — ​ ​ — ​ ​ 10,200 ​ Other revenues ​ ​ 2,898 ​ ​ 882 ​ ​ 829 ​ ​ — ​ ​ 21,064 ​ ​ 25,673 ​ Total revenues ​ $ 342,995 ​ $ 139,496 ​ $ 36,913 ​ $ 15,795 ​ $ 5,269 ​ $ 540,468 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal sales ​ $ 370,630 ​ $ 191,249 ​ $ — ​ $ — ​ $ — ​ $ 561,879 ​ Oil & gas royalties ​ ​ — ​ ​ — ​ ​ 37,030 ​ ​ — ​ ​ — ​ ​ 37,030 ​ Coal royalties ​ ​ — ​ ​ — ​ ​ — ​ ​ 18,702 ​ ​ ( 18,702 ) ​ ​ — ​ Transportation revenues ​ ​ 24,476 ​ ​ 6,277 ​ ​ — ​ ​ — ​ ​ — ​ ​ 30,753 ​ Other revenues ​ ​ 2,735 ​ ​ 488 ​ ​ 315 ​ ​ 6 ​ ​ 18,491 ​ ​ 22,035 ​ Total revenues ​ $ 397,841 ​ $ 198,014 ​ $ 37,345 ​ $ 18,708 ​ $ ( 211 ) ​ $ 651,697 ​ ​ 16 Table of Contents The following table illustrates the beginning and ending balances of our trade receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ ​ 2025 2024 ​ ​ (in thousands) ​ Beginning balance ​ $ 166,829 ​ $ 282,622 Ending balance ​ $ 177,467 ​ $ 272,191 ​ ​ 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 March 31, 2025 and disaggregated by segment and contract duration. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2028 and ​ ​ ​ 2025 2026 2027 Thereafter Total ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations coal revenues ​ $ 811,427 ​ $ 718,227 ​ $ 468,043 ​ $ 653,069 ​ $ 2,650,766 Appalachia Coal Operations coal revenues ​ ​ 511,400 ​ ​ 130,101 ​ ​ 30,105 ​ ​ — ​ ​ 671,606 Total coal revenues (1) ​ $ 1,322,827 ​ $ 848,328 ​ $ 498,148 ​ $ 653,069 ​ $ 3,322,372 (1) Coal revenues generally consists of consolidated revenues excluding our Oil & Gas Royalties segment as well as intercompany revenues from our Coal Royalties segment . ​ 15. INCOME TAXES ​ Components of income tax expense are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ ​ 2025 2024 ​ ​ (in thousands) ​ Current: ​ ​ ​ ​ ​ ​ ​ Federal ​ $ 4,723 ​ $ 4,718 ​ State ​ 320 ​ 338 ​ ​ ​ 5,043 ​ 5,056 ​ Deferred: ​ ​ ​ ​ ​ ​ ​ Federal ​ ( 777 ) ​ ( 127 ) ​ State ​ ( 84 ) ​ 20 ​ ​ ​ ( 861 ) ​ ( 107 ) ​ Income tax expense ​ $ 4,182 ​ $ 4,949 ​ ​ The effective income tax rates for our income tax expense for the three months ended March 31, 2025 and 2024 are less than the federal statutory rate, primarily due to the portion of income not subject to income taxes. ​ Our 2020 through 2024 tax years remain open to examination by tax authorities, and lower-tier partnership income tax returns for the tax years ended December 31, 2020 and 2021 are being audited by the Internal Revenue Service. ​ 16 . EARNINGS PER LIMITED PARTNER UNIT ​ We utilize the two-class method in calculating basic and diluted earnings per limited partner unit (“EPU”). 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 17 Table of Contents 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 in December 2024 and no longer receive an allocation of income. ​ 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 ​ ​ ​ March 31, ​ ​ 2025 2024 ​ ​ (in thousands, except per unit data) ​ Net income attributable to ARLP ​ $ 73,983 ​ $ 158,057 ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: ​ ​ ​ ​ ​ ​ ​ Distributions to participating securities ​ ( 826 ) ​ ( 1,680 ) ​ Undistributed earnings attributable to participating securities ​ — ​ ( 1,448 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to ARLP available to limited partners ​ $ 73,157 ​ $ 154,929 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average limited partner units outstanding – basic and diluted ​ 128,265 ​ 127,671 ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per limited partner unit - basic and diluted (1) ​ $ 0.57 ​ $ 1.21 ​ (1) Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive. For the three months ended March 31, 2025, LTIP units of 817 were considered anti-dilutive under the treasury stock method. For the three months ended March 31, 2024, the combined total of LTIP, SERP and Directors’ Deferred Compensation Plan units of 2,175 were considered anti-dilutive under the treasury stock method . ​ 17. 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. We also have an “all other” category referred to as Other, Corporate and Elimination. 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 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). 18 Table of Contents ​ 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. ​ 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 – 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). 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. ​ Reportable segment results are presented below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal Operations ​ Royalties ​ ​ ​ ​ ​ Illinois ​ ​ ​ ​ ​ ​ ​ ​ Basin Appalachia Oil & Gas Coal Total ​ ​ (in thousands) Three Months Ended March 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenues - Outside ​ $ 342,995 ​ $ 139,496 ​ $ 36,913 ​ $ — ​ $ 519,404 ​ Revenues - Intercompany ​ ​ — ​ ​ — ​ ​ — ​ ​ 15,795 ​ ​ 15,795 ​ Total revenues (1) ​ ​ 342,995 ​ ​ 139,496 ​ ​ 36,913 ​ ​ 15,795 ​ ​ 535,199 ​ Less: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment Adjusted EBITDA Expense (2) ​ 209,959 ​ ​ 120,568 ​ ​ 5,721 ​ ​ 6,400 ​ 342,648 ​ Transportation expenses ​ ​ 6,863 ​ ​ 3,337 ​ ​ — ​ ​ — ​ ​ 10,200 ​ Other segment items (3) ​ ​ — ​ ​ — ​ ​ 1,308 ​ ​ — ​ ​ 1,308 ​ Segment Adjusted EBITDA (4) ​ 126,173 ​ ​ 15,591 ​ ​ 29,884 ​ ​ 9,395 ​ 181,043 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets (5) ​ 1,072,545 ​ ​ 472,957 ​ ​ 834,854 ​ ​ 312,950 ​ 2,693,306 ​ Capital expenditures (6) ​ 52,585 ​ ​ 30,828 ​ ​ — ​ ​ 45 ​ 83,458 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenues - Outside ​ $ 397,841 ​ $ 198,014 ​ $ 37,345 ​ $ 6 ​ $ 633,206 ​ Revenues - Intercompany ​ ​ — ​ ​ — ​ ​ — ​ ​ 18,702 ​ ​ 18,702 ​ Total revenues (1) ​ ​ 397,841 ​ ​ 198,014 ​ ​ 37,345 ​ ​ 18,708 ​ ​ 651,908 ​ Less: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment Adjusted EBITDA Expense (2) ​ 233,087 ​ ​ 117,502 ​ ​ 4,940 ​ ​ 6,264 ​ 361,793 ​ Transportation expenses ​ ​ 24,476 ​ ​ 6,277 ​ ​ — ​ ​ — ​ ​ 30,753 ​ Other segment items (3) ​ ​ — ​ ​ — ​ ​ 1,003 ​ ​ — ​ ​ 1,003 ​ Segment Adjusted EBITDA (4) ​ 140,278 ​ ​ 74,235 ​ ​ 31,402 ​ ​ 12,444 ​ 258,359 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets (5) ​ 1,019,209 ​ ​ 520,093 ​ ​ 783,309 ​ ​ 320,217 ​ 2,642,828 ​ Capital expenditures (6) ​ 96,133 ​ ​ 26,451 ​ ​ — ​ ​ — ​ 122,584 ​ (1) The following is a reconciliation of our total segment revenues to total consolidated revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ ​ 2025 2024 ​ ​ ​ (in thousands) ​ Total segment revenues ​ $ 535,199 ​ $ 651,908 ​ Other, Corporate and Elimination revenues - Outside ​ ​ 21,064 ​ ​ 18,491 ​ Other, Corporate and Elimination revenues - Intercompany ​ ​ ( 15,795 ) ​ ​ ( 18,702 ) ​ Total consolidated revenues ​ $ 540,468 ​ $ 651,697 ​ ​ 19 Table of Contents Revenues included in Other, Corporate and Elimination are attributable to intercompany eliminations, which are primarily intercompany coal royalties eliminations, outside revenues at the Matrix Group and other outside miscellaneous sales and revenue activities. ​ (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 a key component of Segment Adjusted EBITDA in addition to coal sales, royalty revenues and other revenues. The exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA Expense allows management to focus solely on the evaluation of segment operating performance as it primarily relates to our operating expenses. ​ (3) Other segment items for each reportable segment includes: Oil & Gas Royalties – equity method investment income from AllDale III and income allocated to noncontrolling interest ​ (4) Segment Adjusted EBITDA 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 used as a financial measure by Mr. Craft, who is also our chief operating decision maker (“CODM”), other management and by external users of our financial statements such as investors, commercial banks, research analysts and others. Our CODM uses Segment Adjusted EBITDA in assessing segment performance and deciding how to allocate resources. Segment Adjusted EBITDA provides useful information to our CODM and investors regarding our performance and results of operations because Segment Adjusted EBITDA (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation and planning decisions, (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations and (iv) allows our CODM and management to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments. ​ The following is a reconciliation of total Segment Adjusted EBITDA for our segments to consolidated income before income taxes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ ​ 2025 2024 ​ ​ (in thousands) ​ Segment Adjusted EBITDA – total segments ​ $ 181,043 ​ $ 258,359 ​ Other, Corporate and Elimination profit (loss) ​ ​ ( 528 ) ​ 2,195 ​ General and administrative ​ ​ ( 20,580 ) ​ ​ ( 22,129 ) ​ Depreciation, depletion and amortization ​ ​ ( 68,629 ) ​ ​ ( 65,549 ) ​ Interest expense, net ​ ​ ( 7,567 ) ​ ​ ( 6,473 ) ​ Change in fair value of digital assets ​ ​ ( 5,574 ) ​ ​ 11,853 ​ Litigation expense accrual ​ — ​ ( 15,250 ) ​ Noncontrolling interest ​ ​ 1,577 ​ ​ 1,510 ​ Income before income taxes ​ $ 79,742 ​ $ 164,516 ​ ​ Other, Corporate and Elimination profit (loss) represents profit (loss) from operating segments below the quantitative thresholds when determining our reportable segments as well as the elimination of intersegment profit (loss) between our reportable segments. The operating segments included are those described as part of our Other, Corporate and Eliminations category. ​ 20 Table of Contents (5) The following is a reconciliation of our total segment assets to total consolidated assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ ​ 2025 2024 ​ ​ ​ (in thousands) ​ Total segment assets ​ $ 2,693,306 ​ $ 2,642,828 ​ Other, Corporate and Elimination total assets ​ ​ 209,429 ​ ​ 322,959 ​ Total consolidated assets ​ $ 2,902,735 ​ $ 2,965,787 ​ ​ (6) Capital expenditures exclude $ 1.8 million paid towards oil & gas reserve acquisitions for the three months ended March 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ ​ 2025 2024 ​ ​ ​ (in thousands) ​ Total segment capital expenditures ​ $ 83,458 ​ $ 122,584 ​ Other, Corporate and Elimination capital expenditures ​ ​ 3,318 ​ ​ 1,262 ​ Total consolidated capital expenditures ​ $ 86,776 ​ $ 123,846 ​ ​ ​ ​ 21 Table of Contents ​