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SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2025

SEGMENT INFORMATION

SEGMENT INFORMATION

17.SEGMENT INFORMATION

​

We operate in the United States as a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic utilities, industrial users and international customers as well as royalty income from oil & gas mineral interests. We aggregate multiple operating segments into four reportable segments, Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties. We also have an “all other” category referred to as Other, Corporate and Elimination. Our two coal operations reportable segments correspond to major coal producing regions in the eastern United States with similar economic characteristics including coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues. The two coal operations reportable segments include seven mining complexes operating in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia and a coal loading terminal in Indiana on the Ohio River. Our Oil & Gas Royalties reportable segment includes our oil & gas mineral interests which are located primarily in the Permian (Delaware and Midland), Anadarko (SCOOP/STACK) and Williston (Bakken) basins. The operations within our Oil & Gas Royalties reportable segment primarily include receiving royalties and lease bonuses for our oil & gas mineral interests. Our Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties, which are either (a) leased to our mining complexes or (b) near our coal mining operations but not yet leased.

​

The Illinois Basin Coal Operations reportable segment includes (a) the Gibson County Coal, LLC’s mining complex, (b) the Warrior Coal, LLC mining complex, (c) the River View mining complex, which includes the River View and Henderson County mines and (d) the Hamilton mining complex. The segment also includes our Mt. Vernon Transfer Terminal, LLC (“Mt. Vernon”) coal loading terminal in Indiana which operates on the Ohio River, Mid-America Carbonates, LLC and other support services, and our non-operating mining complexes.      

​

The Appalachia Coal Operations reportable segment includes (a) the Mettiki mining complex, (b) the Tunnel Ridge, LLC mining complex and (c) the MC Mining complex.

​

The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by Alliance Minerals through its consolidated subsidiaries as well as equity interests held in AllDale III (Note 3 – Variable Interest Entities).

​

The Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties that are (a) leased to certain of our mining complexes in both the Illinois Basin Coal Operations and Appalachia Coal Operations reportable segments or (b) located near our operations and external mining operations.

​

Other, Corporate and Elimination includes marketing and administrative activities, certain of our subsidiaries, primarily consisting of Matrix Design Group, LLC, its subsidiaries, and Alliance Design Group, LLC (collectively referred to as "Matrix Group"), Bitiki KY, LLC, which holds our crypto-mining activities (see Note 6 – Digital Assets), our non oil & gas equity investments (see Note 3 – Variable Interest Entities and Note 7 – Equity Investments), Wildcat Insurance, LLC which assists the ARLP Partnership with its insurance requirements, AROP Funding and Alliance Finance (both discussed in Note 8 – Long-Term Debt). The eliminations included in Other, Corporate and Elimination primarily represent the intercompany coal royalty transactions described above between our Coal Royalties reportable segment and our coal operations’ mines.

​

Reportable segment results are presented below.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Coal Operations

​

Royalties

​

​

​

​

​

Illinois

​

​

​

​

​

​

​

​

Basin

Appalachia

Oil & Gas

Coal

Total

​

​

(in thousands)

Three Months Ended March 31, 2025

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenues - Outside

​

$

342,995

​

$

139,496

​

$

36,913

​

$

—

​

$

519,404

​

Revenues - Intercompany

​

​

—

​

​

—

​

​

—

​

​

15,795

​

​

15,795

​

Total revenues (1)

​

​

342,995

​

​

139,496

​

​

36,913

​

​

15,795

​

​

535,199

​

Less:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Segment Adjusted EBITDA Expense (2)

​

209,959

​

​

120,568

​

​

5,721

​

​

6,400

​

342,648

​

Transportation expenses

​

​

6,863

​

​

3,337

​

​

—

​

​

—

​

​

10,200

​

Other segment items (3)

​

​

—

​

​

—

​

​

1,308

​

​

—

​

​

1,308

​

Segment Adjusted EBITDA (4)

​

126,173

​

​

15,591

​

​

29,884

​

​

9,395

​

181,043

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total assets (5)

​

1,072,545

​

​

472,957

​

​

834,854

​

​

312,950

​

2,693,306

​

Capital expenditures (6)

​

52,585

​

​

30,828

​

​

—

​

​

45

​

83,458

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended March 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenues - Outside

​

$

397,841

​

$

198,014

​

$

37,345

​

$

6

​

$

633,206

​

Revenues - Intercompany

​

​

—

​

​

—

​

​

—

​

​

18,702

​

​

18,702

​

Total revenues (1)

​

​

397,841

​

​

198,014

​

​

37,345

​

​

18,708

​

​

651,908

​

Less:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Segment Adjusted EBITDA Expense (2)

​

233,087

​

​

117,502

​

​

4,940

​

​

6,264

​

361,793

​

Transportation expenses

​

​

24,476

​

​

6,277

​

​

—

​

​

—

​

​

30,753

​

Other segment items (3)

​

​

—

​

​

—

​

​

1,003

​

​

—

​

​

1,003

​

Segment Adjusted EBITDA (4)

​

140,278

​

​

74,235

​

​

31,402

​

​

12,444

​

258,359

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total assets (5)

​

1,019,209

​

​

520,093

​

​

783,309

​

​

320,217

​

2,642,828

​

Capital expenditures (6)

​

96,133

​

​

26,451

​

​

—

​

​

—

​

122,584

​

(1) The following is a reconciliation of our total segment revenues to total consolidated revenues:

​

​	​	​	​	​	​	​	​
​		Three Months Ended					​
​	​	March 31,					​
​	​	2025			2024		​
​	​	(in thousands)					​
Total segment revenues	​	$	535,199	​	$	651,908	​
Other, Corporate and Elimination revenues - Outside	​	​	21,064	​	​	18,491	​
Other, Corporate and Elimination revenues - Intercompany	​	​	(15,795)	​	​	(18,702)	​
Total consolidated revenues	​	$	540,468	​	$	651,697	​

​

Revenues included in Other, Corporate and Elimination are attributable to intercompany eliminations, which are primarily intercompany coal royalties eliminations, outside revenues at the Matrix Group and other outside miscellaneous sales and revenue activities.

​

(2) Segment Adjusted EBITDA Expense 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. Segment Adjusted EBITDA Expense is used as a 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.

​

(3) Other segment items for each reportable segment includes:

Oil & Gas Royalties – equity method investment income from AllDale III and income allocated to noncontrolling interest

​

(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 adjusted for certain items that we characterize as unrepresentative of our ongoing operations. Segment Adjusted EBITDA is used as a financial measure by Mr. Craft, who is also our chief operating decision maker (“CODM”), other management and by external users of our financial statements such as investors, commercial banks, research analysts and others. Our CODM uses Segment Adjusted EBITDA in assessing segment performance and deciding how to allocate resources. Segment Adjusted EBITDA provides useful information to our CODM and investors regarding our performance and results of operations because Segment Adjusted EBITDA (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, (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations and (iv) allows our CODM and 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 total Segment Adjusted EBITDA for our segments to consolidated income before income taxes:

​

​	​	​	​	​	​	​	​
​		Three Months Ended					​
​	​	March 31,					​
​	​	2025			2024
​	​	(in thousands)					​
Segment Adjusted EBITDA – total segments	​	$	181,043	​	$	258,359	​
Other, Corporate and Elimination profit (loss)	​	​	(528)	​		2,195	​
General and administrative	​	​	(20,580)	​	​	(22,129)	​
Depreciation, depletion and amortization	​	​	(68,629)	​	​	(65,549)	​
Interest expense, net	​	​	(7,567)	​	​	(6,473)	​
Change in fair value of digital assets	​	​	(5,574)	​	​	11,853	​
Litigation expense accrual	​		—	​		(15,250)	​
Noncontrolling interest	​	​	1,577	​	​	1,510	​
Income before income taxes	​	$	79,742	​	$	164,516	​

​

Other, Corporate and Elimination profit (loss) represents profit (loss) from operating segments below the quantitative thresholds when determining our reportable segments as well as the elimination of intersegment profit (loss) between our reportable segments. The operating segments included are those described as part of our Other, Corporate and Eliminations category.

​

(5) The following is a reconciliation of our total segment assets to total consolidated assets:

​

​	​	​	​	​	​	​	​
​		Three Months Ended					​
​	​	March 31,					​
​	​	2025			2024		​
​	​	(in thousands)					​
Total segment assets	​	$	2,693,306	​	$	2,642,828	​
Other, Corporate and Elimination total assets	​	​	209,429	​	​	322,959	​
Total consolidated assets	​	$	2,902,735	​	$	2,965,787	​

​

(6) Capital expenditures exclude $1.8 million paid towards oil & gas reserve acquisitions for the three months ended March 31, 2024.

​

​	​	​	​	​	​	​	​
​		Three Months Ended					​
​	​	March 31,					​
​	​	2025			2024		​
​	​	(in thousands)					​
Total segment capital expenditures	​	$	83,458	​	$	122,584	​
Other, Corporate and Elimination capital expenditures	​	​	3,318	​	​	1,262	​
Total consolidated capital expenditures	​	$	86,776	​	$	123,846	​

​

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- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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