What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-07 compared with 2025-05-09 · 133 added, 46 removed, 179 unchanged (50% of the section changed)

27 unchanged sentences

This commitment represents an interest of approximately 5.0% in Gavin Generation (based on total commitments).

As of March 31, 2025, we have not funded any portion of our capital commitment.

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

For more information about the Gavin Generation investment, please read “Item 1.

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● Appalachia Coal Operations reportable segment includes (a) the Mettiki Coal, LLC and Mettiki Coal (WV), LLC (collectively, “Mettiki”) mining complex, (b) the Tunnel Ridge, LLC (“Tunnel Ridge”) mining complex and (c) the MC Mining, LLC (“MC Mining”) mining complex.

● Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by Alliance Minerals as well as our equity method investment in AllDale III.

● Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by Alliance Minerals as well as our equity method investment in AllDale Minerals III, LP (“AllDale III”).

Please read “Item 1.

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● Coal Royalties reportable segment includes substantially all of our coal mineral resources and the majority of our coal mineral reserves 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, Bitiki KY, LLC, which holds our crypto-mining activities, our non oil & gas equity investments, Wildcat Insurance, LLC, which assists the ARLP Partnership with its insurance requirements, AROP Funding, LLC (“AROP Funding”) and Alliance Resource Finance Corporation (“Alliance Finance”), and other miscellaneous activities.

● 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, Bitiki KY, LLC, which holds our crypto-mining activities, our non oil & gas equity and debt investments, Wildcat Insurance, LLC, which assists the ARLP Partnership with its insurance requirements, AROP Funding, LLC (“AROP Funding”) and Alliance Resource Finance Corporation (“Alliance Finance”), and other miscellaneous activities.

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.

Please read “Item 1.

Financial Statements (Unaudited)—Note 3 – Variable Interest Entities, Note 7 – Equity Investments, and Note 8 – Long-Term Debt” of this Quarterly Report on Form 10-Q for more information on our investments in Infinitum, Ascend, and NGP ET IV as well as AROP Funding and Alliance Finance.

Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

Financial Statements (Unaudited)—Note 3 – Variable Interest Entities, Note 7 – Investments, and Note 8 – Long-Term Debt” of this Quarterly Report on Form 10-Q for more information on our investments in Infinitum, Ascend, and NGP ET IV as well as AROP Funding and Alliance Finance.

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

Consolidated Information

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Total Revenues

Total revenues for the three months ended March 31, 2025 (“2025 Quarter”) decreased 17.1% to $540.5 million compared to $651.7 million for the three months ended March 31, 2024 (“2024 Quarter”) primarily as a result of reduced coal sales volumes and prices as well as lower transportation revenues.

Total revenues for the three months ended June 30, 2025 (“2025 Quarter”) decreased 7.7% to $547.5 million compared to $593.4 million for the three months ended June 30, 2024 (“2024 Quarter”) primarily as a result of reduced coal sales prices and lower transportation revenues, partially offset by increased coal sales volumes.

● Coal sales decreased to $485.5 million for the 2025 Quarter compared to $512.7 million for the 2024 Quarter.

The decrease was attributable to lower tons sold, which reduced coal sales by $58.5 million and lower average coal sales prices, which reduced coal sales by $34.9 million.

Coal sales volumes decreased due primarily to decreased tons sold from our Hamilton mine as a result of lower domestic demand and lower production levels at Tunnel Ridge due to challenging mining conditions and a longwall move during the 2025 Quarter.

Coal sales prices decreased by 6.9% as a result of lower domestic price realizations at several mines in the Illinois Basin and reduced export price realizations from our MC Mining and Mettiki mines.

The decrease was attributable to lower average coal sales prices, which reduced coal sales by $61.9 million, partially offset by higher tons sold, which increased coal sales by $34.7 million.

Coal sales prices decreased by 11.3% as a result of lower domestic price realizations at several mines resulting from the continued roll-off of higher-priced legacy contracts.

Coal sales volumes improved primarily driven by increased tons sold from our Hamilton and River View mines, partially offset by lower production levels at Tunnel Ridge due to challenging mining conditions.

● Transportation revenues and expenses were $8.6 million and $26.7 million for 2025 and 2024 Quarters, respectively.

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Segment Adjusted EBITDA Expense

Segment Adjusted EBITDA Expense decreased 3.4% to $346.2 million primarily related to our coal operations which decreased 6.2% to $332.2 million, as a result of lower coal sales volumes, partially offset by higher per ton costs.

Segment Adjusted EBITDA Expense per ton sold for our coal operations increased 4.7% to $42.75 per ton sold in the 2025 Quarter compared to $40.85 per ton in the 2024 Quarter, primarily due to lower production volumes, an increased sales mix of tons from higher cost operations, lower recoveries at our Appalachian mines, increased longwall move days at our Mettiki and Tunnel Ridge operations, and challenging mining conditions at the Tunnel Ridge mine as well as the following per ton cost increase:

● Labor and benefit expenses per ton produced, excluding workers’ compensation, increased 5.9% to $13.23 per ton in the 2025 Quarter from $12.49 per ton in the 2024 Quarter.

The increase of $0.74 per ton was primarily due to higher direct labor costs at several mines.

Segment Adjusted EBITDA Expense increases per ton for our coal operations were partially offset by the following decreases:

Segment Adjusted EBITDA Expense decreased 2.7% to $353.5 million primarily related to our coal operations which decreased 2.9% to $345.9 million, as a result of lower per ton costs, partially offset by higher coal sales volumes.

Segment Adjusted EBITDA Expense per ton sold for our coal operations decreased 9.0% to $41.27 per ton sold in the 2025 Quarter compared to $45.37 per ton in the 2024 Quarter, primarily due to an increased sales mix of tons from lower cost operations, improved recoveries at our River View and Hamilton mines and reduced longwall move days at Hamilton as well as the following per ton cost decreases:

● Labor and benefit expenses per ton produced, excluding workers’ compensation, decreased 3.2% to $13.25 per ton in the 2025 Quarter from $13.69 per ton in the 2024 Quarter.

The decrease of $0.44 per ton was primarily due to lower direct labor costs at several mines.

● Material and supplies expenses per ton produced decreased 13.2% to $13.90 per ton in the 2025 Quarter from $16.02 per ton in the 2024 Quarter.

The decrease of $1.37 per ton produced primarily reflects decreases of $0.72 per ton for roof support, $0.54 per ton for contract labor used in the mining process, $0.27 per ton for ventilation related expenses, and $0.20 per ton for outside expenses, partially offset by an increase of $0.20 per ton for various preparation plant expenses .

The decrease of $2.12 per ton produced primarily reflects decreases of $0.79 per ton for roof support, $0.65 per ton in longwall subsidence expense, $0.37 per ton for contract labor used in the mining process, and $0.18 per ton for safety related materials and supplies .

● Maintenance expenses per ton produced decreased 12.0% to $4.64 per ton in the 2025 Quarter from $5.27 per ton in the 2024 Quarter.

The decrease of $0.63 per ton produced was primarily a result of lower maintenance costs at several mines.

● Production taxes and royalty expenses per ton incurred as a percentage of coal sales prices and volumes decreased $0.35 per produced ton sold in the 2025 Quarter compared to 2024 Quarter primarily as a result of lower price realizations, partially offset by an unfavorable mix of tons sold mined in states with severance taxes.

● Production taxes and royalty expenses per ton incurred as a percentage of coal sales prices and volumes decreased $0.43 per produced ton sold in the 2025 Quarter compared to 2024 Quarter primarily as a result of lower price realizations and a favorable mix of tons sold that were mined in states without severance taxes.

Depreciation, depletion and amortization

Depreciation, depletion and amortization expense increased to $76.3 million for the 2025 Quarter compared to $66.5 million for the 2024 Quarter primarily as a result of increased coal sales volumes.

Change in fair value of digital assets

We recorded a decrease of $5.6 million in the fair value of our digital assets during the 2025 Quarter compared to an increase of $11.9 million during the 2024 Quarter reflecting the movement in the price of bitcoin during each period.

The change in the fair value of our digital assets increased by $16.6 million for the 2025 Quarter compared to the 2024 Quarter reflecting the movement in the price of bitcoin.

Impairment loss on investments

During the 2025 Quarter, we recorded a $25.0 million impairment on our equity investment in Ascend as a result of Ascend’s recent recapitalization through a convertible note financing completed during the 2025 Quarter.

Please read “Item 1.

Financial Statements (Unaudited)—Note 7 – Investments” of this Quarterly Report on Form 10-Q for more information.

Net income attributable to ARLP

Net income attributable to ARLP for the 2025 Quarter was $74.0 million, or $0.57 per basic and diluted limited partner unit, compared to $158.1 million, or $1.21 per basic and diluted limited partner unit, for the 2024 Quarter as a result of lower revenues and a decrease in the fair value of our digital assets, partially offset by lower operating expenses.

Net income attributable to ARLP for the 2025 Quarter was $59.4 million, or $0.46 per basic and diluted limited partner unit, compared to $100.2 million, or $0.77 per basic and diluted limited partner unit, for the 2024 Quarter as a result of lower revenues, increased depreciation, and the impairment loss on investments in the 2025 Quarter, partially offset by an increase in the fair value of our digital assets.

Segment Adjusted EBITDA

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Illinois Basin Coal Operations – Segment Adjusted EBITDA decreased 3.2% to $114.2 million in the 2025 Quarter from $118.0 million in the 2024 Quarter.

The decrease of $14.1 million was primarily attributable to lower coal sales volumes and prices, partially offset by lower operating expenses.

Sales volumes decreased by 6.1% compared to the 2024 Quarter due primarily to decreased tons sold from our Hamilton mine as a result of the timing of committed sales.

The decrease of $3.8 million was primarily attributable to lower prices and higher operating expenses, partially offset by increased sales volumes.

Coal sales price per ton decreased by 10.1% compared to the 2024 Quarter as a result of lower domestic price realizations at several mines in the region.

Segment Adjusted EBITDA Expense decreased 9.9% to $210.0 million in the 2025 Quarter from $233.1 million in the 2024 Quarter, primarily as a result of reduced sales volumes and lower operating expenses per ton.

Segment Adjusted EBITDA Expense per ton for the 2025 Quarter decreased by 4.0% compared to the 2024 Quarter due primarily to increased production and lower maintenance and materials and supplies costs at several mines in the region as well as reduced longwall move days at our Hamilton mine.

Sales volumes increased by 15.2% compared to the 2024 Quarter due primarily to increased tons sold from our Hamilton and River View mines.

Segment Adjusted EBITDA Expense increased 6.9% to $231.2 million in the 2025 Quarter from $216.2 million in the 2024 Quarter, primarily as a result of increased sales volumes, partially offset by lower operating expenses per ton.

Segment Adjusted EBITDA Expense per ton for the 2025 Quarter decreased by 7.1% compared to the 2024 Quarter due primarily to lower maintenance and materials and supplies costs at several mines in the region, improved recoveries at our River View and Hamilton mines and reduced longwall move days at Hamilton.

Appalachia Coal Operations – Segment Adjusted EBITDA decreased 35.1% to $29.4 million for the 2025 Quarter from $45.3 million in the 2024 Quarter.

The decrease of $58.6 million was primarily attributable to lower coal sales, which decreased 29.3% to $135.3 million in the 2025 Quarter from $191.2 million in the 2024 Quarter.

The decrease of $15.9 million was primarily attributable to lower coal sales, which decreased 21.6% to $141.6 million in the 2025 Quarter from $180.7 million in the 2024 Quarter, partially offset by reduced operating expenses.

The decrease in coal sales reflects lower coal sales volumes and price realizations.

Tons sold decreased by 22.7% in the 2025 Quarter compared to the 2024 Quarter primarily as a result of lower production levels at Tunnel Ridge due to challenging mining conditions and a longwall move during the 2025 Quarter.

Average coal sales price per ton decreased by 8.5% compared to the 2024 Quarter primarily due to reduced export price realizations from our MC Mining and Mettiki mines, partially offset by a greater mix of higher priced sales tons from these two operations during the 2025 Quarter.

Tons sold decreased by 16.8% in the 2025 Quarter compared to the 2024 Quarter primarily as a result of lower production levels at Tunnel Ridge due to challenging mining conditions.

Average coal sales price per ton decreased by 5.8% compared to the 2024 Quarter primarily due to reduced domestic pricing from our Tunnel Ridge and MC Mining operations, partially offset by a greater mix of higher priced sales tons from MC Mining and Mettiki during the 2025 Quarter.

Segment Adjusted

EBITDA Expense decreased 17.5% to $112.8 million in the 2025 Quarter from $136.8 million in the 2024 Quarter due primarily to reduced volumes.

Oil & Gas Royalties – Segment Adjusted EBITDA decreased to $29.9 million in the 2025 Quarter compared to $31.3 million in the 2024 Quarter due to lower average sales price per BOE, which decreased 9.6%, partially offset by higher volumes, which increased 7.7%.

Coal Royalties – Segment Adjusted EBITDA increased to $11.8 million in the 2025 Quarter compared to $10.0 million in the 2024 Quarter due to higher royalty tons sold to the Partnership’s mining subsidiaries and lower selling expenses.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Consolidated Information

Six Months Ended

Increase (Decrease)

(in thousands)

Consolidated Total

Tons produced

Volume - BOE (1)

Oil & gas royalties

Total revenues

Segment Adjusted EBITDA Expense (2)

Net income of ARLP

Segment Adjusted EBITDA (2)

Expense increased 2.6% to $120.6 million in the 2025 Quarter from $117.5 million in the 2024 Quarter due to increased per ton operating expenses and reduced volumes.

Segment Adjusted EBITDA Expense per ton for the 2025 Quarter increased by 32.7% compared to the 2024 Quarter due to lower recoveries across the region, increased longwall move days at our Mettiki and Tunnel Ridge operations, and challenging mining conditions at the Tunnel Ridge mine.

Oil & Gas Royalties – Segment Adjusted EBITDA decreased to $29.9 million in the 2025 Quarter compared to $31.4 million in the 2024 Quarter due to a reduction in oil & gas royalty volumes, which decreased by 2.0%, and higher expenses.

Coal Royalties – Segment Adjusted EBITDA decreased to $9.4 million in the 2025 Quarter compared to $12.4 million in the 2024 Quarter due to lower royalty tons sold and reduced average royalty rates per ton received from the Partnership’s mining subsidiaries.

(1) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel).

(2) For definitions of Segment Adjusted EBITDA and Segment Adjusted EBITDA Expense and related reconciliations to their respective comparable GAAP financial measures, please see below under “— Reconciliation of Non-GAAP Financial Measures.”

Total Revenues

Total revenues for the six months ended June 30, 2025 (“2025 Period”) decreased 12.6% to $1.09 billion compared to $1.25 billion for the six months ended June 30, 2024 (“2024 Period”) primarily due to lower coal sales and transportation revenues.

● Coal sales decreased to $954.0 million for the 2025 Period compared to $1.07 billion for the 2024 Period.

The decrease was attributable to lower average coal sales prices, which reduced coal sales by $96.4 million and lower tons sold, which reduced coal sales by $24.2 million.

Coal sales prices decreased by 9.2% as a result of lower domestic price realizations at several mines resulting from the continued roll-off of higher-priced legacy contracts and reduced export price realizations from our MC Mining and Mettiki mines.

Coal sales volumes decreased due primarily to lower production levels at Tunnel Ridge due to challenging mining conditions.

● Transportation revenues and expenses were $18.8 million and $57.5 million for 2025 and 2024 Periods, respectively.

The decrease of $38.7 million was primarily attributable to lower third-party transportation rates in the 2025 Period and decreased coal shipments for which we arrange third-party transportation.

Transportation revenues are recognized when title to the coal passes to the customer and recognized in an amount equal to the corresponding transportation expenses.

Segment Adjusted EBITDA Expense

Segment Adjusted EBITDA Expense decreased 3.0% to $699.6 million primarily related to our coal operations which decreased 4.6% to $678.1 million, as a result of lower coal sales volumes and lower per ton costs.

Segment Adjusted EBITDA Expense per ton sold for our coal operations decreased 2.3% to $41.98 per ton sold in the 2025 Period compared to $42.99 per ton in the 2024 Period, primarily due to an increased sales mix of tons from lower cost operations, higher recoveries from several mines and fewer longwall move days at our Hamilton operation as well as the following per ton cost decreases:

● Material and supplies expenses per ton produced decreased 11.2% to $13.70 per ton in the 2025 Period from $15.43 per ton in the 2024 Period .

The decrease of $1.73 per ton produced primarily reflects decreases of $0.75 per ton for roof support, $0.46 per ton for contract labor used in the mining process, and $0.37 per ton in longwall subsidence expense .

● Maintenance expenses per ton produced decreased 9.5% to $4.75 per ton in the 2025 Period from $5.25 per ton in the 2024 Period .

The decrease of $0.50 per ton produced was primarily a result of lower maintenance costs at several mines.

● Production taxes and royalty expenses per ton incurred as a percentage of coal sales prices and volumes decreased $0.40 per produced ton sold in the 2025 Period compared to the 2024 Period primarily as a result of lower price realizations, partially offset by an unfavorable mix of tons sold that were mined in states with severance taxes.

Depreciation, depletion and amortization

Depreciation, depletion and amortization expense increased to $145.0 million for the 2025 Period compared to $132.0 million for the 2024 Period primarily as a result of increased coal sales volumes at our River View mine and additional assets placed in service at our Tunnel Ridge and Mettiki operations during the 2025 Period.

Impairment loss on investments

During the 2025 Period, we recorded a $25.0 million impairment on our equity investment in Ascend as a result of Ascend’s recent recapitalization through a convertible note financing completed during the 2025 Period.

Please read “Item 1.

Financial Statements (Unaudited)—Note 7 – Investments” of this Quarterly Report on Form 10-Q for more information.

Net income attributable to ARLP

Net income attributable to ARLP for the 2025 Period was $133.4 million, or $1.03 per basic and diluted limited partner unit, compared to $258.2 million, or $1.98 per basic and diluted limited partner unit, for the 2024 Period as a result of lower revenues, higher depreciation, and the impairment loss on investments in the 2025 Period, partially offset by reduced operating expenses.

Segment Adjusted EBITDA

Our 2025 Period Segment Adjusted EBITDA decreased $99.8 million to $362.8 million from the 2024 Period Segment Adjusted EBITDA of $462.6 million.

Segment Information

Six Months Ended

Increase (Decrease)

(in thousands)

Illinois Basin Coal Operations

Other revenues

Segment Adjusted EBITDA Expense

Segment Adjusted EBITDA

Appalachia Coal Operations

Other revenues

Segment Adjusted EBITDA Expense

Segment Adjusted EBITDA

Oil & Gas Royalties

Volume - BOE (1)

Oil & gas royalties

Other revenues

Segment Adjusted EBITDA Expense

Segment Adjusted EBITDA

Coal Royalties

Volume - Tons sold (2)

Intercompany coal royalties

Other revenues

Segment Adjusted EBITDA Expense

Segment Adjusted EBITDA

(1) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel).

(2) Represents tons sold by our coal operations segments associated with coal reserves leased from our Coal Royalties Segment.

Illinois Basin Coal Operations – Segment Adjusted EBITDA decreased 6.9% to $240.4 million in the 2025 Period from $258.3 million in the 2024 Period.

The decrease of $17.9 million was primarily attributable to lower coal sales prices, partially offset by higher sales volumes and lower operating expenses.

Coal sales price per ton decreased by 7.3% compared to the 2024 Period as a result of lower domestic price realizations at several mines in the region.

Sales volumes increased by 4.0% compared to the 2024 Period due primarily to increased tons sold from our Hamilton and River View mines.

Segment Adjusted EBITDA Expense decreased 1.8% to $441.1 million in the 2025 Period from $449.3 million in the 2024 Period, primarily as a result of lower operating expenses per ton, partially offset by increased sales volumes.

Segment Adjusted EBITDA Expense per ton for the 2025 Period decreased by 5.5% compared to the 2024 Period due primarily to lower maintenance and materials and supplies costs at several mines in the region, improved recoveries at our River View and Hamilton mines and reduced longwall move days at Hamilton.

Appalachia Coal Operations – Segment Adjusted EBITDA decreased 62.3% to $45.0 million for the 2025 Period from $119.6 million in the 2024 Period.

The decrease of $74.6 million was primarily attributable to lower coal sales, which decreased 25.6% to $276.9 million in the 2025 Period from $371.9 million in the 2024 Period, partially offset by lower operating expenses.

The decrease in coal sales reflects lower coal sales volumes and price realizations.

Tons sold decreased by 19.9% in the 2025 Period compared to the 2024 Period primarily as a result of lower production levels at Tunnel Ridge due to challenging mining conditions.

Average coal sales price per ton decreased by 7.1% compared to the 2024 Period primarily due to reduced domestic pricing from our Tunnel Ridge and MC Mining operations and lower export price realizations from MC Mining and Mettiki, partially offset by a greater mix of higher priced sales tons from the MC Mining

and Mettiki operations during the 2025 Period.

Segment Adjusted EBITDA Expense decreased 8.2% to $233.4 million in the 2025 Period from $254.3 million in the 2024 Period due to reduced volumes partially offset by increased per ton operating expenses.

Segment Adjusted EBITDA Expense per ton for the 2025 Period increased by 14.6% compared to the 2024 Period due to challenging mining conditions at the Tunnel Ridge mine.

Oil & Gas Royalties – Segment Adjusted EBITDA decreased to $59.8 million in the 2025 Period compared to $62.7 million in the 2024 Period due to lower average sales price per BOE, which decreased 5.1%, partially offset by higher volumes, which increased 2.6%.

Coal Royalties – Segment Adjusted EBITDA decreased to $21.2 million in the 2025 Period compared to $22.4 million in the 2024 Period due to reduced average royalty rates per ton received from the Partnership’s mining subsidiaries.

Reconciliation of Non-GAAP Financial Measures

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

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

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

We believe that the presentation of consolidated Adjusted EBITDA provides useful information to investors regarding our performance and results of operations because Adjusted EBITDA, when used in conjunction with related GAAP financial measures, (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 and (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations.

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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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Three Months Ended

Six Months Ended

(in thousands)

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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.

We have $80.6 million remaining authorized under our unit repurchase program as of June 30, 2025.

No units were repurchased during the six months ended June 30, 2025.

The program has no time limit and we may repurchase units from time to time in the open market or in other privately negotiated transactions.

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

No units were repurchased during the three months ended March 31, 2025.

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.

The remaining authorized amount for unit repurchases under this program was $80.6 million as of March 31, 2025.

The timing of any future unit repurchases and the ultimate number of units to be purchased will depend on several factors, including business and market conditions, our future financial performance, and other capital priorities.

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Financial Statements (Unaudited) – Note 8 – Long-Term Debt.”

Cash provided by operating activities was $145.7 million for the 2025 Quarter compared to $209.7 million for the 2024 Quarter.

Cash provided by operating activities was $297.3 million for the 2025 Period compared to $425.4 million for the 2024 Period.

The decrease in cash provided by operating activities was primarily due to the decrease in net income adjusted for non-cash items and unfavorable working capital changes primarily related to trade receivables and other miscellaneous changes.

These decreases were partially offset by favorable working capital changes primarily related to accounts payable and inventories compared to the 2024 Quarter.

Net cash used in investing activities was $93.1 million for the 2025 Quarter compared to $120.5 million for the 2024 Quarter.

The decrease in cash used in investing activities was primarily due to the decrease in capital expenditures

in the 2025 Quarter as compared to the 2024 Quarter.

This decrease was partially offset by a change in accounts payable and accrued liabilities during the 2025 Quarter.

Net cash used in financing activities was $108.3 million for the 2025 Quarter compared to $15.0 million for the 2024 Quarter.

The increase in cash used in financing activities was primarily attributable to decreased borrowings under our securitization facility and reduced proceeds from equipment financings in the 2025 Quarter as compared to the 2024 Quarter.

These increases were partially offset by reduced payments under the securitization facility in the 2025 Quarter.

These decreases were partially offset by favorable working capital changes primarily related to inventories compared to the 2024 Period.

Net cash used in investing activities was $168.3 million for the 2025 Period compared to $223.0 million for the 2024 Period.

The decrease in cash used in investing activities was primarily due to the decrease in capital expenditures in the 2025 Period as compared to the 2024 Period.

This decrease was partially offset by a change in accounts payable and accrued liabilities during the 2025 Period.

Net cash used in financing activities was $211.2 million for the 2025 Period compared to $58.6 million for the 2024 Period.

The increase in cash used in financing activities was primarily attributable to proceeds from the issuance of our 2029 Senior Notes and from an equipment financing in the 2024 Period.

These increases were partially offset by reduced payments on long-term debt and reduced debt issuance costs in the 2025 Period.

Cash Requirements

Management anticipates having sufficient cash flow to meet 2025 cash requirements, including capital expenditures, scheduled payments on long-term debt, lease obligations, asset retirement obligation costs and workers’ compensation and pneumoconiosis costs, with our March 31, 2025 cash and cash equivalents of $81.3 million, cash flows from operations, or borrowings under our revolving credit facility and securitization facility, if necessary.

Management anticipates having sufficient cash flow to meet 2025 cash requirements, including capital expenditures, scheduled payments on long-term debt, lease obligations, asset retirement obligation costs and workers’ compensation and pneumoconiosis costs, with our June 30, 2025 cash and cash equivalents of $55.0 million, cash flows from operations, or borrowings under our revolving credit facility and securitization facility, if necessary.

We currently project average estimated annual maintenance capital expenditures over the next five years of approximately $7.28 per ton produced.

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We also have an agreement with a bank to provide additional letters of credit in the amount of $5.0 million to maintain surety bonds to secure certain asset retirement obligations and our obligations for workers’ compensation benefits.

On March 31, 2025, we had $5.0 million in letters of credit outstanding under this agreement.

On June 30, 2025, we had $5.0 million in letters of credit outstanding under this agreement.

Related-Party Transactions

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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 2. Management’s Discussion and Analysis