SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2021


	Coal Operations				Royalties
	Illinois								Other and		Elimination
	Basin		Appalachia		Oil & Gas		Coal		Corporate		(1)		Consolidated

	(in thousands)
Three Months Ended March 31, 2021

Revenues - Outside	$	190,934	$	108,619	$	14,020	$	—	$	5,049	$	—	$	318,622
Revenues - Intercompany		—		—		—		11,301		2,719		(14,020)		—
Total revenues (2)		190,934		108,619		14,020		11,301		7,768		(14,020)		318,622

Segment Adjusted EBITDA Expense (3)		125,581		73,726		2,058		4,028		4,286		(11,962)		197,717
Segment Adjusted EBITDA (4)		57,673		31,506		11,946		7,273		3,481		(2,058)		109,821
Total assets		740,945		442,595		609,108		294,333		476,362		(412,163)		2,151,180
Capital expenditures		16,401		11,666		—		—		3,370		—		31,437

Three Months Ended March 31, 2020

Revenues - Outside	$	203,872	$	128,103	$	14,263	$	5	$	4,520	$	—	$	350,763
Revenues - Intercompany		—		—		—		11,371		2,859		(14,230)		—
Total revenues (2)		203,872		128,103		14,263		11,376		7,379		(14,230)		350,763

Segment Adjusted EBITDA Expense (3)		156,683		79,918		883		4,467		4,642		(11,895)		234,698
Segment Adjusted EBITDA (4)		43,333		47,302		13,755		6,909		2,737		(2,335)		111,701
Total assets		903,700		504,893		637,774		296,328		506,882		(453,156)		2,396,421
Capital expenditures		26,229		23,571		—		—		564		—		50,364

(1)

The elimination column represents the elimination of intercompany transactions and is primarily comprised of coal royalties paid by certain of our coal operation entities to Alliance Resource Properties, sales from the Matrix Group to our mining operations, coal sales and purchases between operations within different segments, sales of receivables to AROP Funding, financing between segments and insurance premiums paid to Wildcat Insurance.

(2)	Revenues included in the Other and Corporate column are primarily attributable to the outside and affiliate revenues at the Matrix Group and coal brokerage activities. In addition, Other and Corporate includes affiliate revenues from administrative and Wildcat Insurance revenues services.

(3)	Segment Adjusted EBITDA Expense includes operating expenses, coal purchases and other income. Transportation expenses are excluded as transportation revenues are recognized in an amount equal to transportation expenses when title passes to the customer.

Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization)


	Three Months Ended
	March 31,
	2021		2020

	(in thousands)
Segment Adjusted EBITDA Expense	$	197,717	$	234,698
Other expense		(1,197)		(356)
Operating expenses (excluding depreciation, depletion and amortization)	$	196,520	$	234,342

(4)

Segment Adjusted EBITDA is defined as net income (loss) attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization, general and administrative expenses and asset and goodwill impairments. Management therefore is able 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. Consolidated Segment Adjusted EBITDA is reconciled to net income as follows:

Reconciliation of consolidated Segment Adjusted EBITDA to net income


	Three Months Ended
	March 31,
	2021		2020

	(in thousands)
Consolidated Segment Adjusted EBITDA	$	109,821	$	111,701
General and administrative		(15,504)		(13,438)
Depreciation, depletion and amortization		(59,202)		(73,921)
Asset impairments		—		(24,977)
Goodwill impairment		—		(132,026)
Interest expense, net		(10,379)		(12,227)
Income tax benefit		12		105
Net income (loss) attributable to ARLP	$	24,748	$	(144,783)
Noncontrolling interest		78		76
Net income (loss)	$	24,826	$	(144,707)