XML 35 R23.htm IDEA: XBRL DOCUMENT
v3.22.2

SEGMENT INFORMATION | 6 Months Ended
--- | ---
Jun. 30, 2022
SEGMENT INFORMATION |
SEGMENT INFORMATION | 16. 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 and international utilities and industrial users 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 operating mining complexes (a) the Gibson County Coal, LLC mining complex, (b) the Warrior Coal, LLC mining complex, (c) the River View Coal, LLC mining complex and (d) the Hamilton County Coal, LLC mining complex. The segment also includes our Mt. Vernon Transfer Terminal, LLC coal-loading terminal in Indiana which operates on the Ohio River, Mid-America Carbonates, LLC and other support services, and our non-operating Illinois Basin mining complexes. ​ The Appalachia Coal Operations reportable segment includes operating mining complexes (a) the Mettiki mining complex, (b) the Tunnel Ridge, LLC mining complex and (c) the MC Mining, LLC mining complex. The Mettiki mining complex includes Mettiki Coal (WV), LLC's Mountain View mine and Mettiki Coal, LLC's preparation plant. ​ The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by AR Midland, LP ("AR Midland") and AllDale I & II and includes Alliance Minerals' equity interests in both AllDale III (Note 9 – Investments) and Cavalier Minerals. ​ The Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties that are (a) leased to certain of our mining complexes in both the Illinois Basin Coal Operations and Appalachia Coal Operations reportable segments or (b) located near our operations and external mining operations. Approximately two thirds of the coal sold by our Coal Operations' mines is leased from our Coal Royalties entities. ​ Other, Corporate and Elimination includes marketing and administrative activities, Matrix Design Group, LLC, its subsidiaries, and Alliance Design Group, LLC (collectively referred to as the "Matrix Group"), our investments in Francis, Infinitum and NGP ETP IV (see Note 9 – Investments), Wildcat Insurance, LLC, which assists the ARLP Partnership with its insurance requirements, AROP Funding and Alliance Finance (both discussed in Note 6 – Long-Term Debt), Pontiki Coal, LLC's workers' compensation and pneumoconiosis liabilities 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. ​ Reportable segment results are presented below. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Coal Operations | ​ | Royalties | ​ | Other, | ​ | ​ | ​ |
​ | ​ | Illinois |  | ​ |  | ​ | ​ | ​ | ​ | Corporate and |  | ​ | ​ | ​
​ |  | Basin |  | Appalachia |  | Oil & Gas |  | Coal | ​ | Elimination |  | Consolidated |
​ | ​ | (in thousands) |
Three Months Ended June 30, 2022 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Revenues - Outside | ​ | $ | 313,497 | ​ | $ | 255,682 | ​ | $ | 36,579 | ​ | $ | — | ​ | $ | 10,743 | ​ | $ | 616,501 | ​
Revenues - Intercompany | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 14,525 | ​ | ​ | (14,525) | ​ | ​ | — | ​
Total revenues (1) | ​ | ​ | 313,497 | ​ | ​ | 255,682 | ​ | ​ | 36,579 | ​ | ​ | 14,525 | ​ | ​ | (3,782) | ​ | ​ | 616,501 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Segment Adjusted EBITDA Expense (2) | ​ |  | 194,697 | ​ |  | 117,369 | ​ |  | 3,234 | ​ |  | 5,398 | ​ |  | (4,624) | ​ |  | 316,074 | ​
Segment Adjusted EBITDA (3) | ​ |  | 97,352 | ​ |  | 124,377 | ​ |  | 34,609 | ​ |  | 9,127 | ​ |  | 839 | ​ |  | 266,304 | ​
Capital expenditures | ​ |  | 35,343 | ​ |  | 22,491 | ​ |  | — | ​ |  | — | ​ |  | 4,995 | ​ |  | 62,829 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Three Months Ended June 30, 2021 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Revenues - Outside | ​ | $ | 218,233 | ​ | $ | 120,723 | ​ | $ | 17,587 | ​ | $ | — | ​ | $ | 5,900 | ​ | $ | 362,443 | ​
Revenues - Intercompany | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 11,653 | ​ | ​ | (11,653) | ​ | ​ | — | ​
Total revenues (1) | ​ | ​ | 218,233 | ​ | ​ | 120,723 | ​ | ​ | 17,587 | ​ | ​ | 11,653 | ​ | ​ | (5,753) | ​ | ​ | 362,443 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Segment Adjusted EBITDA Expense (2) | ​ |  | 140,176 | ​ |  | 74,456 | ​ |  | 2,419 | ​ |  | 4,871 | ​ |  | (7,418) | ​ |  | 214,504 | ​
Segment Adjusted EBITDA (3) | ​ |  | 70,623 | ​ |  | 41,641 | ​ |  | 15,379 | ​ |  | 6,782 | ​ |  | 1,667 | ​ |  | 136,092 | ​
Capital expenditures | ​ |  | 12,515 | ​ |  | 10,382 | ​ |  | — | ​ |  | — | ​ |  | 1,292 | ​ |  | 24,189 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Six Months Ended June 30, 2022 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Revenues - Outside | ​ | $ | 588,193 | ​ | $ | 400,981 | ​ | $ | 67,540 | ​ | $ | — | ​ | $ | 20,650 | ​ | $ | 1,077,364 | ​
Revenues - Intercompany | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 29,692 | ​ | ​ | (29,692) | ​ | ​ | — | ​
Total revenues (1) | ​ | ​ | 588,193 | ​ | ​ | 400,981 | ​ | ​ | 67,540 | ​ | ​ | 29,692 | ​ | ​ | (9,042) | ​ | ​ | 1,077,364 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Segment Adjusted EBITDA Expense (2) | ​ |  | 372,286 | ​ | ​ | 201,084 | ​ | ​ | 6,235 | ​ | ​ | 10,217 | ​ | ​ | (12,568) | ​ |  | 577,254 | ​
Segment Adjusted EBITDA (3) | ​ |  | 175,567 | ​ | ​ | 175,480 | ​ | ​ | 63,161 | ​ | ​ | 19,475 | ​ | ​ | 3,525 | ​ |  | 437,208 | ​
Total assets | ​ |  | 748,291 | ​ | ​ | 457,724 | ​ | ​ | 667,278 | ​ | ​ | 288,509 | ​ | ​ | 171,389 | ​ |  | 2,333,191 | ​
Capital expenditures | ​ |  | 71,890 | ​ | ​ | 40,836 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 9,256 | ​ |  | 121,982 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Six Months Ended June 30, 2021 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Revenues - Outside | ​ | $ | 409,167 | ​ | $ | 229,342 | ​ | $ | 31,607 | ​ | $ | — | ​ | $ | 10,949 | ​ | $ | 681,065 | ​
Revenues - Intercompany | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 22,954 | ​ | ​ | (22,954) | ​ | ​ | — | ​
Total revenues (1) | ​ | ​ | 409,167 | ​ | ​ | 229,342 | ​ | ​ | 31,607 | ​ | ​ | 22,954 | ​ | ​ | (12,005) | ​ | ​ | 681,065 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Segment Adjusted EBITDA Expense (2) | ​ |  | 265,757 | ​ | ​ | 148,182 | ​ | ​ | 4,477 | ​ | ​ | 8,899 | ​ | ​ | (15,094) | ​ |  | 412,221 | ​
Segment Adjusted EBITDA (3) | ​ |  | 128,296 | ​ | ​ | 73,147 | ​ | ​ | 27,325 | ​ | ​ | 14,055 | ​ | ​ | 3,090 | ​ |  | 245,913 | ​
Total assets | ​ |  | 726,555 | ​ | ​ | 425,574 | ​ | ​ | 604,355 | ​ | ​ | 292,134 | ​ | ​ | 66,895 | ​ |  | 2,115,513 | ​
Capital expenditures | ​ |  | 28,916 | ​ | ​ | 22,048 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 4,662 | ​ |  | 55,626 | ​
(1) | Revenues included in the Other, Corporate and Elimination column are attributable to intercompany eliminations, which are primarily intercompany coal royalty eliminations, outside revenues at the Matrix Group and other outside miscellaneous sales and revenue activities.
​
(2) | 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.
​ ​ The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to Operating expenses (excluding depreciation, depletion and amortization): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Three Months Ended | ​ | Six Months Ended | ​
​ | ​ | June 30, | ​ | June 30, | ​
​ | ​ | 2022 |  | 2021 |  | 2022 |  | 2021 |
​ | ​ | (in thousands) | ​
Segment Adjusted EBITDA Expense | ​ | $ | 316,074 | ​ | $ | 214,504 | ​ | $ | 577,254 | ​ | $ | 412,221 | ​
Outside coal purchases | ​ |  | (151) | ​ |  | (114) | ​ |  | (151) | ​ |  | (114) | ​
Other income (expense) | ​ |  | 579 | ​ |  | (1,351) | ​ |  | 1,145 | ​ |  | (2,548) | ​
Operating expenses (excluding depreciation, depletion and amortization) | ​ | $ | 316,502 | ​ | $ | 213,039 | ​ | $ | 578,248 | ​ | $ | 409,559 | ​
​
(3) | 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. 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:
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Three Months Ended | ​ | Six Months Ended | ​
​ | ​ | June 30, | ​ | June 30, | ​
​ | ​ | 2022 |  | 2021 |  | 2022 |  | 2021 |
​ | ​ | (in thousands) | ​
Consolidated Segment Adjusted EBITDA | ​ | $ | 266,304 | ​ | $ | 136,092 | ​ | $ | 437,208 | ​ | $ | 245,913 | ​
General and administrative | ​ |  | (22,457) | ​ |  | (17,492) | ​ |  | (41,053) | ​ |  | (32,996) | ​
Depreciation, depletion and amortization | ​ |  | (66,734) | ​ |  | (64,733) | ​ |  | (130,048) | ​ |  | (123,935) | ​
Interest expense, net | ​ |  | (9,304) | ​ |  | (9,827) | ​ |  | (18,931) | ​ |  | (20,206) | ​
Income tax (expense) benefit | ​ |  | (6,331) | ​ |  | (5) | ​ |  | (49,046) | ​ |  | 7 | ​
Net income attributable to ARLP | ​ | $ | 161,478 | ​ | $ | 44,035 | ​ | $ | 198,130 | ​ | $ | 68,783 | ​
Noncontrolling interest | ​ | ​ | 323 | ​ | ​ | 130 | ​ | ​ | 613 | ​ | ​ | 208 | ​
Net income | ​ | $ | 161,801 | ​ | $ | 44,165 | ​ | $ | 198,743 | ​ | $ | 68,991 | ​
​

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration