XML 34 R21.htm IDEA: XBRL DOCUMENT

EARNINGS PER LIMITED PARTNER UNIT

9 Months Ended

Sep. 30, 2024

EARNINGS PER LIMITED PARTNER UNIT

EARNINGS PER LIMITED PARTNER UNIT

14.EARNINGS PER LIMITED PARTNER UNIT

We utilize the two-class method in calculating basic and diluted earnings per limited partner unit ("EPU"). Subsequent to the acquisition of oil & gas net royalty acres from JC Resources LP on February 22, 2023 (the "JC Resources Acquisition"), net income attributable to ARLP is allocated to limited partners and participating securities with nonforfeitable distributions or distribution equivalents, while net losses attributable to ARLP are allocated only to limited partners but not to participating securities. Prior to the JC Resources Acquisition, in addition to limited partners and participating securities allocations, amounts were also allocated to our general partner for historical earnings from the mineral interests acquired in the JC Resources Acquisition.

Our participating securities are outstanding restricted unit awards under our Long-Term Incentive Plan ("LTIP") and phantom units in notional accounts under our Supplemental Executive Retirement Plan ("SERP") and the MGP Amended and Restated Deferred Compensation Plan for Directors ("Directors' Deferred Compensation Plan").

The following is a reconciliation of net income attributable to ARLP used for calculating basic and diluted earnings per unit and the weighted-average units used in computing EPU:


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2024			2023			2024			2023

		(in thousands, except per unit data)

Net income attributable to ARLP		$	86,281		$	153,699		$	344,525		$	514,674
Less:
General partner's interest in net income attributable to ARLP			—			—			—			(1,384)

Limited partners' interest in net income attributable to ARLP			86,281			153,699			344,525			513,290

Less:
Distributions to participating securities			(1,616)			(2,414)			(4,984)			(7,242)
Undistributed earnings attributable to participating securities			—			(1,652)			(1,378)			(6,596)

Net income attributable to ARLP available to limited partners		$	84,665		$	149,633		$	338,163		$	499,452

Weighted-average limited partner units outstanding – basic and diluted			128,062			127,125			127,932			127,199

Earnings per limited partner unit - basic and diluted (1)		$	0.66		$	1.18		$	2.64		$	3.93

(1)

Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive. The combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 1,863 and 1,915 for the three and nine months ended September 30, 2024, respectively, and 2,759 and 2,878 for the three and nine months ended September 30, 2023, respectively, were considered anti-dilutive under the treasury stock method.