What changed in this filing

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Item 1. Financial Statements

2025-08-07 compared with 2025-05-09 · 203 added, 74 removed, 556 unchanged (33% of the section changed)

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Equity securities

Debt securities

Operating lease right-of-use assets

36 unchanged sentences

Three Months Ended

Six Months Ended

SALES AND OPERATING REVENUES:

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Change in fair value of digital assets

Impairment loss on investments - (Note 7)

Other income (expense)

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Three Months Ended

Six Months Ended

OTHER COMPREHENSIVE INCOME:

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Foreign currency translation adjustment

Change in unrealized gains on debt securities (2)

OTHER COMPREHENSIVE INCOME

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(1) Amortization of prior service cost and net actuarial loss is included in the computation of net periodic benefit cost (credit) (see Notes 9 and 10 for additional details).

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

See notes to condensed consolidated financial statements.

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(In thousands)

Three Months Ended

Six Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES

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Contributions to equity method investments

Purchase of debt securities

Oil & gas reserve asset acquisitions

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Payments under revolving credit facilities

Borrowing under long-term debt

Payments on long-term debt

Payment of debt issuance costs

Payments for tax withholdings related to settlements under deferred compensation plan

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Cash paid for interest

Cash paid for income taxes

SUPPLEMENTAL NON-CASH ACTIVITY:

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Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of 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.

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

All intercompany transactions and accounts have been eliminated.

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Actual results could differ from those estimates.

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

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

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

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

(“Infinitum”) and Ascend Elements, Inc.

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

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

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

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

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

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

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

(“NGP ET IV”).

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

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

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

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

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

We hold debt securities in Ascend.

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

NEW ACCOUNTING STANDARDS

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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.

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

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

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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.

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

VARIABLE INTEREST ENTITIES

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Accrued taxes other than income taxes

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

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

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

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

At March 31, 2025, the carrying value of our investment in AllDale III was $ 21.9 million.

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.

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

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

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

As of March 31, 2025, we have funded $ 10.4 million of this commitment.

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

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

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

At March 31, 2025, the carrying value of our investment in NGP ET IV was $ 9.3 million.

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

Gavin Generation

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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).

This commitment represents an interest of 5.4 % 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.

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

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

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FAIR VALUE MEASUREMENTS

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

The following table summarizes certain fair value measurements within the hierarchy:

(in thousands)

March 31, 2025

June 30, 2025

Recorded on a recurring basis:

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Contingent consideration

Debt securities

Additional disclosures:

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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.

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

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

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

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

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

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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.

Contingent Consideration

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

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.

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(Average) (a)

March 31, 2025

June 30, 2025

Contingent Consideration

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Three Months Ended

Six Months Ended

(in thousands)

Beginning balance

Noncash changes in fair value (1)

Ending balance

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

Debt Securities

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

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

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

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

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

Valuation Technique(s)

Unobservable Input

(Average) (a)

June 30, 2025

Debt securities

Option-pricing approach methodology

Industry volatility

29.10 % - 70.86 % ( 49.98 %)

Estimated time to exit

2.0 - 4.0 ( 3.0 ) years

Income approach methodology

Forecasted future cash flow

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

Cost of capital

11.25 % - 16.58 % ( 13.92 %)

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

The following table represents changes in our debt securities:

Three Months Ended

Six Months Ended

(in thousands)

Beginning balance

Noncash changes in fair value (1)

Ending balance

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

Inventories consist of the following:

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Total inventories, net

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.

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

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

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

DIGITAL ASSETS

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

March 31, 2025

June 30, 2025

December 31, 2024

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(in thousands, except unit data)

EQUITY INVESTMENT S

Equity Method Investments

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Three Months Ended

Six Months Ended

(in thousands)

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

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.

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

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

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

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

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.

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

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

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

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

We elected to participate in the recapitalization of Ascend with a $ 3.1 million commitment to purchase convertible debt.

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

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

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

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

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

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

The following table reflects our debt securities holdings:

June 30, 2025

Unrealized Gains (1)

(in thousands, except unit data)

Debt Securities

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

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

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

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

LONG-TERM DEBT

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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.

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

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

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

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The debt of Alliance Coal to cash flow ratio, consolidated debt of Alliance Coal and the Intermediate Partnership to cash flow ratio, and interest coverage ratio were 0.16 to 1.0, 1.00

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.

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

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

8.625% Senior Notes due 2029

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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.

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

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

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Three Months Ended

Six Months Ended

(in thousands)

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Interest accretion

Valuation loss (gain) (1)

Ending balance

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

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

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

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

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

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

Our receivables for traumatic injury claims under this policy as of March 31, 2025 are $ 3.7 million and are included in Other long-term assets on our condensed consolidated balance sheet.

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

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

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Three Months Ended

Six Months Ended

(in thousands)

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

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

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

receiving benefit accruals for service.

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

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Three Months Ended

Six Months Ended

(in thousands)

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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.

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

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

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

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February 14, 2025

May 15, 2025 (1)

(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.

August 14, 2025 (1)

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

Change in Partners’ Capital

The following tables present the quarterly change in Partners' Capital for the three months ended March 31, 2025 and 2024:

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

Limited Partner

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Balance at March 31, 2025

Comprehensive income:

Other comprehensive income

Total comprehensive income

Common unit-based compensation

Distributions on deferred common unit-based compensation

Distributions from consolidated company to noncontrolling interest

Distributions to Partners

Balance at June 30, 2025

Limited Partner

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Balance at March 31, 2024

Comprehensive income:

Actuarially determined long-term liability adjustments

Total comprehensive income

Common unit-based compensation

Distributions on deferred common unit-based compensation

Distributions from consolidated company to noncontrolling interest

Distributions to Partners

Balance at June 30, 2024

COMMON UNIT-BASED COMPENSATION PLAN

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Non-vested grants at January 1, 2025

Non-vested grants at March 31, 2025

Non-vested grants at June 30, 2025

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

(2) During the three months ended March 31, 2025, we issued 366,043 unrestricted common units to the LTIP participants.

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

The remaining vested units were withheld to satisfy tax withholdings.

LTIP expense for grants of restricted units was $ 2.0 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.

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

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

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

That expense is expected to be recognized over a weighted-average period of 1.5 years.

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(in thousands)

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Oil & gas royalties

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Total revenues

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Oil & gas royalties

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Total revenues

Six Months Ended June 30, 2025

Oil & gas royalties

Coal royalties

Transportation revenues

Other revenues

Total revenues

Six Months Ended June 30, 2024

Oil & gas royalties

Coal royalties

Transportation revenues

Other revenues

Total revenues

The following table illustrates the beginning and ending balances of our trade receivables:

Three Months Ended

Six Months Ended

(in thousands)

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Ending balance

The following table illustrates the amount of our transaction price for all current coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2025 and disaggregated by segment and contract duration.

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

(in thousands)

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Three Months Ended

Six Months Ended

(in thousands)

Income tax expense

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.

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

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.

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

During 2024, our participating securities also included phantom units in notional accounts under our Supplemental

Executive Retirement Plan (“SERP”) and the MGP Amended and Restated Deferred Compensation Plan for Directors (“Directors’ Deferred Compensation Plan”).

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

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

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

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

Six Months Ended

(in thousands, except per unit data)

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

For the three 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 .

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

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

SEGMENT INFORMATION

14 unchanged sentences

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).

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

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

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(in thousands)

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Revenues - Outside

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Segment Adjusted EBITDA (4)

Capital expenditures (6)

Three Months Ended June 30, 2024

Revenues - Outside

Revenues - Intercompany

Total revenues (1)

Segment Adjusted EBITDA Expense (2)

Transportation expenses

Other segment items (3)

Segment Adjusted EBITDA (4)

Capital expenditures (6)

Six Months Ended June 30, 2025

Revenues - Outside

Revenues - Intercompany

Total revenues (1)

Segment Adjusted EBITDA Expense (2)

Transportation expenses

Other segment items (3)

Segment Adjusted EBITDA (4)

Total assets (5)

Capital expenditures (6)

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

Revenues - Outside

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Three Months Ended

Six Months Ended

(in thousands)

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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:

(3) Other segment items include:

Oil & Gas Royalties – equity method investment income from AllDale III and income allocated to noncontrolling interest

6 unchanged sentences

Three Months Ended

Six Months Ended

(in thousands)

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Change in fair value of digital assets

Impairment loss on investments

Litigation expense accrual

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

Three Months Ended

(in thousands)

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Total consolidated assets

(6) Capital expenditures exclude $ 1.8 million paid towards oil & gas reserve acquisitions for the three months ended March 31, 2024.

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

Three Months Ended

Six Months Ended

(in thousands)

3 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements