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SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 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 September 30, 2023

Revenues - Outside		$	371,633		$	215,800		$	36,311		$	—		$	12,777		$	636,521
Revenues - Intercompany			—			—			—			16,763			(16,763)			—
Total revenues (2)			371,633			215,800			36,311			16,763			(3,986)			636,521

Segment Adjusted EBITDA Expense (3)			213,209			131,997			3,873			6,851			(5,524)			350,406
Segment Adjusted EBITDA (4)			132,428			74,832			31,366			9,912			(881)			247,657
Capital expenditures (5)			59,833			30,304			—			—			20,202			110,339

Three Months Ended September 30, 2022

Revenues - Outside (1)		$	335,234		$	245,724		$	41,613		$	—		$	9,890		$	632,461
Revenues - Intercompany			—			—			—			16,708			(16,708)			—
Total revenues (2)			335,234			245,724			41,613			16,708			(6,818)			632,461

Segment Adjusted EBITDA Expense (1) (3)			194,967			134,672			3,926			5,545			(8,609)			330,501
Segment Adjusted EBITDA (1) (4)			120,760			102,012			39,429			11,163			1,792			275,156
Capital expenditures			39,529			17,780			—			40,033			1,962			99,304

Nine Months Ended September 30, 2023

Revenues - Outside		$	1,087,431		$	705,301		$	105,260		$	—		$	43,287		$	1,941,279
Revenues - Intercompany			—			—			—			48,843			(48,843)			—
Total revenues (2)			1,087,431			705,301			105,260			48,843			(5,556)			1,941,279

Segment Adjusted EBITDA Expense (3)			634,944			377,115			11,859			17,836			(13,618)			1,028,136
Segment Adjusted EBITDA (4)			383,987			300,955			90,461			31,007			2,560			808,970
Total assets			882,943			459,742			767,415			319,930			384,011			2,814,041
Capital expenditures (5)			179,284			94,119			—			400			21,553			295,356

Nine Months Ended September 30, 2022

Revenues - Outside (1)		$	923,427		$	646,705		$	115,089		$	—		$	30,540		$	1,715,761
Revenues - Intercompany			—			—			—			46,400			(46,400)			—
Total revenues (2)			923,427			646,705			115,089			46,400			(15,860)			1,715,761

Segment Adjusted EBITDA Expense (1) (3)			567,253			335,756			10,785			15,762			(21,177)			908,379
Segment Adjusted EBITDA (1) (4)			296,327			277,492			107,902			30,638			5,317			717,676
Total assets (1)			731,441			428,000			756,879			325,498			329,568			2,571,386
Capital expenditures			111,419			58,616			—			40,033			11,218			221,286

(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						Nine Months Ended
		September 30,						September 30,
		2023			2022			2023			2022

		(in thousands)
Operating expenses (excluding depreciation, depletion and amortization)		$	339,099		$	330,694		$	1,012,224		$	909,567
Outside coal purchases			11,530			—			15,739			151
Other expense (income)			(223)			(193)			173			(1,339)
Segment Adjusted EBITDA Expense		$	350,406		$	330,501		$	1,028,136		$	908,379

(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						Nine Months Ended
		September 30,						September 30,
		2023			2022			2023			2022

		(in thousands)
Net income		$	155,351		$	168,072		$	519,334		$	370,296
Noncontrolling interest			(1,652)			(364)			(4,660)			(977)
Net income attributable to ARLP		$	153,699		$	167,708		$	514,674		$	369,319
General and administrative			20,097			21,360			61,312			62,462
Depreciation, depletion and amortization			65,393			70,669			199,582			202,499
Interest expense, net			5,067			8,819			21,761			27,750
Income tax expense			3,401			6,600			11,641			55,646
Consolidated Segment Adjusted EBITDA		$	247,657		$	275,156		$	808,970		$	717,676

(5)

Capital expenditures for the three and nine months ended September 30, 2023 exclude $10.0 million and $13.9 million, respectively, paid towards the oil & gas reserve acquisitions. Capital expenditures for the nine months ended September 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						Nine Months Ended
		September 30,						September 30,
		2023			2022			2023			2022

		(in thousands)
Operating expenses (excluding depreciation, depletion and amortization)		$	339,099		$	330,694		$	1,012,224		$	909,567
Outside coal purchases			11,530			—			15,739			151
Other expense (income)			(223)			(193)			173			(1,339)
Segment Adjusted EBITDA Expense		$	350,406		$	330,501		$	1,028,136		$	908,379

Reconciliation of consolidated Segment Adjusted EBITDA to net income


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2023			2022			2023			2022

		(in thousands)
Net income		$	155,351		$	168,072		$	519,334		$	370,296
Noncontrolling interest			(1,652)			(364)			(4,660)			(977)
Net income attributable to ARLP		$	153,699		$	167,708		$	514,674		$	369,319
General and administrative			20,097			21,360			61,312			62,462
Depreciation, depletion and amortization			65,393			70,669			199,582			202,499
Interest expense, net			5,067			8,819			21,761			27,750
Income tax expense			3,401			6,600			11,641			55,646
Consolidated Segment Adjusted EBITDA		$	247,657		$	275,156		$	808,970		$	717,676