SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2023

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 March 31, 2023

Revenues - Outside	$	360,406	$	251,259	$	35,537	$	—	$	15,720	$	662,922
Revenues - Intercompany		—		—		—		15,513		(15,513)		—
Total revenues (2)		360,406		251,259		35,537		15,513		207		662,922

Segment Adjusted EBITDA Expense (3)		207,069		125,799		4,424		5,388		(3,384)		339,296
Segment Adjusted EBITDA (4)		132,008		116,550		30,045		10,125		3,219		291,947
Total assets		840,792		459,834		768,728		326,064		392,331		2,787,749
Capital expenditures (5)		61,982		32,505		2		400		585		95,474

Three Months Ended March 31, 2022

Revenues - Outside (1)	$	274,696	$	145,299	$	33,520	$	—	$	9,907	$	463,422
Revenues - Intercompany		—		—		—		15,167		(15,167)		—
Total revenues (2)		274,696		145,299		33,520		15,167		(5,260)		463,422

Segment Adjusted EBITDA Expense (1) (3)		177,589		83,715		3,277		4,819		(7,944)		261,456
Segment Adjusted EBITDA (1) (4)		78,215		51,103		30,835		10,348		2,686		173,187
Total assets (1)		704,627		425,929		718,710		291,153		153,044		2,293,463
Capital expenditures (5)		36,547		18,345		—		—		4,261		59,153

(1)	Recast for the JC Resources Acquisition as discussed in Note 1 – Organization and Presentation.

(2)	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.

(3)	Segment Adjusted EBITDA Expense includes operating expenses, coal purchases, if applicable, 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
	March 31,
	2023		2022

	(in thousands)
Operating expenses (excluding depreciation, depletion and amortization)	$	338,723	$	262,023
Other expense (income)		573		(567)
Segment Adjusted EBITDA Expense	$	339,296	$	261,456

(4)

Segment Adjusted EBITDA is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization, and general and administrative expenses. 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
	March 31,
	2023		2022

	(in thousands)
Net income	$	192,678	$	38,373
Noncontrolling interest		(1,493)		(290)
Net income attributable to ARLP	$	191,185	$	38,083
General and administrative		21,085		18,622
Depreciation, depletion and amortization		65,550		64,140
Interest expense, net		9,886		9,627
Income tax expense		4,241		42,715
Consolidated Segment Adjusted EBITDA	$	291,947	$	173,187

(5)	Capital Expenditure shown excludes the $72.3 million paid for the JC Resources Acquisition and $2.8 million paid towards the Acquisition Agreement entered into on January 27, 2023 (See Note 2 – Acquisitions).

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


	Three Months Ended
	March 31,
	2023		2022

	(in thousands)
Operating expenses (excluding depreciation, depletion and amortization)	$	338,723	$	262,023
Other expense (income)		573		(567)
Segment Adjusted EBITDA Expense	$	339,296	$	261,456

Reconciliation of consolidated Segment Adjusted EBITDA to net income


	Three Months Ended
	March 31,
	2023		2022

	(in thousands)
Net income	$	192,678	$	38,373
Noncontrolling interest		(1,493)		(290)
Net income attributable to ARLP	$	191,185	$	38,083
General and administrative		21,085		18,622
Depreciation, depletion and amortization		65,550		64,140
Interest expense, net		9,886		9,627
Income tax expense		4,241		42,715
Consolidated Segment Adjusted EBITDA	$	291,947	$	173,187