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SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2023

SEGMENT INFORMATION

Schedule of reportable segment results

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, 2023

Revenues - Outside		$	355,392		$	238,242		$	33,412		$	—		$	14,790		$	641,836
Revenues - Intercompany			—			—			—			16,567			(16,567)			—
Total revenues (2)			355,392			238,242			33,412			16,567			(1,777)			641,836

Segment Adjusted EBITDA Expense (3)			214,666			119,319			3,562			5,597			(4,710)			338,434
Segment Adjusted EBITDA (4)			119,551			109,573			29,050			10,970			222			269,366
Capital expenditures (5)			57,469			31,309			40			—			725			89,543

Three Months Ended June 30, 2022

Revenues - Outside (1)		$	313,497		$	255,682		$	39,956		$	—		$	10,743		$	619,878
Revenues - Intercompany			—			—			—			14,525			(14,525)			—
Total revenues (2)			313,497			255,682			39,956			14,525			(3,782)			619,878

Segment Adjusted EBITDA Expense (1) (3)			194,697			117,369			3,582			5,398			(4,624)			316,422
Segment Adjusted EBITDA (1) (4)			97,352			124,377			37,638			9,127			839			269,333
Capital expenditures			35,343			22,491			—			—			4,995			62,829

Six Months Ended June 30, 2023

Revenues - Outside		$	715,798		$	489,501		$	68,949		$	—		$	30,510		$	1,304,758
Revenues - Intercompany			—			—			—			32,080			(32,080)			—
Total revenues (2)			715,798			489,501			68,949			32,080			(1,570)			1,304,758

Segment Adjusted EBITDA Expense (3)			421,735			245,118			7,986			10,985			(8,094)			677,730
Segment Adjusted EBITDA (4)			251,559			226,123			59,095			21,095			3,441			561,313
Total assets			830,821			470,929			758,816			322,926			404,451			2,787,943
Capital expenditures (5)			119,451			63,814			42			400			1,310			185,017

Six Months Ended June 30, 2022

Revenues - Outside (1)		$	588,193		$	400,981		$	73,476		$	—		$	20,650		$	1,083,300
Revenues - Intercompany			—			—			—			29,692			(29,692)			—
Total revenues (2)			588,193			400,981			73,476			29,692			(9,042)			1,083,300

Segment Adjusted EBITDA Expense (1) (3)			372,286			201,084			6,859			10,217			(12,568)			577,878
Segment Adjusted EBITDA (1) (4)			175,567			175,480			68,473			19,475			3,525			442,520
Total assets (1)			748,291			457,724			734,760			288,509			171,389			2,400,673
Capital expenditures			71,890			40,836			—			—			9,256			121,982

(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						Six Months Ended
		June 30,						June 30,
		2023			2022			2023			2022

		(in thousands)
Operating expenses (excluding depreciation, depletion and amortization)		$	334,402		$	316,850		$	673,125		$	578,873
Outside coal purchases			4,209			151			4,209			151
Other expense (income)			(177)			(579)			396			(1,146)
Segment Adjusted EBITDA Expense		$	338,434		$	316,422		$	677,730		$	577,878

(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						Six Months Ended
		June 30,						June 30,
		2023			2022			2023			2022

		(in thousands)
Net income		$	171,305		$	163,851		$	363,983		$	202,224
Noncontrolling interest			(1,515)			(323)			(3,008)			(613)
Net income attributable to ARLP		$	169,790		$	163,528		$	360,975		$	201,611
General and administrative			20,130			22,480			41,215			41,102
Depreciation, depletion and amortization			68,639			67,690			134,189			131,830
Interest expense, net			6,808			9,304			16,694			18,931
Income tax expense			3,999			6,331			8,240			49,046
Consolidated Segment Adjusted EBITDA		$	269,366		$	269,333		$	561,313		$	442,520

(5)

Capital expenditures for the three and six months ended June 30, 2023 exclude $1.1 million and $3.9 million, respectively, paid towards the Acquisition Agreement. Capital expenditures for the six months ended June 30, 2023 also exclude the $72.3 million paid for the JC Resources Acquisition (See Note 2 – Acquisitions).

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,
		2023			2022			2023			2022

		(in thousands)
Operating expenses (excluding depreciation, depletion and amortization)		$	334,402		$	316,850		$	673,125		$	578,873
Outside coal purchases			4,209			151			4,209			151
Other expense (income)			(177)			(579)			396			(1,146)
Segment Adjusted EBITDA Expense		$	338,434		$	316,422		$	677,730		$	577,878

Reconciliation of consolidated Segment Adjusted EBITDA to net income


		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2023			2022			2023			2022

		(in thousands)
Net income		$	171,305		$	163,851		$	363,983		$	202,224
Noncontrolling interest			(1,515)			(323)			(3,008)			(613)
Net income attributable to ARLP		$	169,790		$	163,528		$	360,975		$	201,611
General and administrative			20,130			22,480			41,215			41,102
Depreciation, depletion and amortization			68,639			67,690			134,189			131,830
Interest expense, net			6,808			9,304			16,694			18,931
Income tax expense			3,999			6,331			8,240			49,046
Consolidated Segment Adjusted EBITDA		$	269,366		$	269,333		$	561,313		$	442,520