XML 58 R42.htm IDEA: XBRL DOCUMENT

SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024

Revenues - Outside (1)		$	354,761		$	188,213		$	36,437		$	4		$	13,935		$	593,350
Revenues - Intercompany			—			—			—			16,584			(16,584)			—
Total revenues (1)			354,761			188,213			36,437			16,588			(2,649)			593,350

Segment Adjusted EBITDA Expense (2)			216,168			136,762			4,635			6,632			(1,026)			363,171
Segment Adjusted EBITDA (3)			118,023			45,319			31,258			9,955			(2,551)			202,004
Capital expenditures (4)			65,973			32,793			—			—			2,676			101,442

Three Months Ended June 30, 2023

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

Segment Adjusted EBITDA Expense (2)			214,666			119,319			3,562			5,597			(4,710)			338,434
Segment Adjusted EBITDA (3)			119,551			109,573			29,050			10,970			222			269,366
Capital expenditures (4)			57,469			31,309			40			—			725			89,543

Six Months Ended June 30, 2024

Revenues - Outside (1)		$	752,602		$	386,226		$	73,782		$	10		$	32,427		$	1,245,047
Revenues - Intercompany			—			—			—			35,286			(35,286)			—
Total revenues (1)			752,602			386,226			73,782			35,296			(2,859)			1,245,047

Segment Adjusted EBITDA Expense (2)			449,255			254,264			9,575			12,896			(4,492)			721,498
Segment Adjusted EBITDA (3)			258,301			119,554			62,660			22,399			(356)			462,558
Total assets			1,011,972			552,796			793,416			316,505			378,257			3,052,946
Capital expenditures (4)			162,106			59,244			—			—			3,938			225,288

Six Months Ended June 30, 2023

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

Segment Adjusted EBITDA Expense (2)			421,735			245,118			7,986			10,985			(8,094)			677,730
Segment Adjusted EBITDA (3)			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 (4)			119,451			63,814			42			400			1,310			185,017

(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 awarded digital assets received for our crypto-mining activities.

(2)

Segment Adjusted EBITDA Expense (a non-GAAP financial measure) includes operating expenses, coal purchases, if applicable, and other income or expense as adjusted to remove certain items from operating expenses that we characterize as unrepresentative of our ongoing operations such as certain litigation accruals. Transportation expenses are excluded as these expenses are passed through to our customers and, consequently, we do not realize any gain or loss on transportation revenues. Segment Adjusted EBITDA Expense is used as a supplemental financial measure by our management to assess the operating performance of our segments. Segment Adjusted EBITDA Expense is a key component of Segment Adjusted EBITDA in addition to coal sales, royalty revenues and other revenues. The exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA Expense allows management to focus solely on the evaluation of segment operating performance as it primarily relates to our operating expenses.

The following is a reconciliation of Operating expenses (excluding depreciation, depletion and amortization), the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA Expense:


		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2024			2023			2024			2023

		(in thousands)
Operating expenses (excluding depreciation, depletion and amortization)		$	351,605		$	334,402		$	715,464		$	673,125
Litigation expense accrual			—			—			(15,250)			—
Outside coal purchases			10,608			4,209			19,720			4,209
Other expense			958			(177)			1,564			396
Segment Adjusted EBITDA Expense		$	363,171		$	338,434		$	721,498		$	677,730

(3)

Segment Adjusted EBITDA (a non-GAAP financial measure) is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses modified for certain items that we characterize as unrepresentative of our ongoing operations, such as the change in fair value of digital assets and certain litigation accruals. Segment Adjusted EBITDA is a key component of consolidated EBITDA, which is used as a supplemental financial measure by management and by external users of our financial statements such as investors, commercial banks, research analysts and others. We believe that the presentation of EBITDA provides useful information to investors regarding our performance and results of operations because EBITDA, when used in conjunction with related GAAP financial measures, (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation and planning decisions and (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations.

Segment Adjusted EBITDA is also used as a supplemental financial measure by our management for reasons similar to those stated in the previous explanation of EBITDA. In addition, the exclusion of corporate general and administrative expenses from consolidated Segment Adjusted EBITDA allows management 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.

The following is a reconciliation of Net income, the most comparable GAAP financial measure, to Consolidated Segment Adjusted EBITDA:


		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2024			2023			2024			2023

		(in thousands)
Net income		$	101,509		$	171,305		$	261,076		$	363,983
Noncontrolling interest			(1,322)			(1,515)			(2,832)			(3,008)
Net income attributable to ARLP		$	100,187		$	169,790		$	258,244		$	360,975
General and administrative			20,562			20,130			42,691			41,215
Depreciation, depletion and amortization			66,454			68,639			132,003			134,189
Interest expense, net			7,193			6,808			13,666			16,694
Change in fair value of digital assets			3,748			—			(8,105)			—
Litigation expense accrual			—			—			15,250			—
Income tax expense			3,860			3,999			8,809			8,240
Consolidated Segment Adjusted EBITDA		$	202,004		$	269,366		$	462,558		$	561,313

(4)

Capital expenditures exclude $72.3 million paid for the JC Resources Acquisition for the six months ended June 30, 2023, $2.9 million and $1.1 million paid towards oil & gas reserve acquisitions for the three months ended June 30, 2024 and 2023, respectively, and $4.7 million and $3.9 million paid towards oil & gas reserve acquisitions for the six months ended June 30, 2024 and 2023, respectively (See Note 3 – 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,
		2024			2023			2024			2023

		(in thousands)
Operating expenses (excluding depreciation, depletion and amortization)		$	351,605		$	334,402		$	715,464		$	673,125
Litigation expense accrual			—			—			(15,250)			—
Outside coal purchases			10,608			4,209			19,720			4,209
Other expense			958			(177)			1,564			396
Segment Adjusted EBITDA Expense		$	363,171		$	338,434		$	721,498		$	677,730

Reconciliation of consolidated Segment Adjusted EBITDA to net income


		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2024			2023			2024			2023

		(in thousands)
Net income		$	101,509		$	171,305		$	261,076		$	363,983
Noncontrolling interest			(1,322)			(1,515)			(2,832)			(3,008)
Net income attributable to ARLP		$	100,187		$	169,790		$	258,244		$	360,975
General and administrative			20,562			20,130			42,691			41,215
Depreciation, depletion and amortization			66,454			68,639			132,003			134,189
Interest expense, net			7,193			6,808			13,666			16,694
Change in fair value of digital assets			3,748			—			(8,105)			—
Litigation expense accrual			—			—			15,250			—
Income tax expense			3,860			3,999			8,809			8,240
Consolidated Segment Adjusted EBITDA		$	202,004		$	269,366		$	462,558		$	561,313