ALLIANCE RESOURCE PARTNERS LP

Significant Relationships Referenced in Notes to Consolidated Financial Statements

Organization

ARLP is a Delaware limited partnership listed on the NASDAQ Global Select Market under the ticker symbol “ARLP.” ARLP was formed in May 1999 and completed its initial public offering on August 19, 1999 when it acquired substantially all of the coal production and marketing assets of Alliance Resource Holdings, Inc., a Delaware corporation (“ARH”), and its subsidiaries. We are managed by our general partner, MGP, a Delaware limited liability company, which holds a non-economic general partner interest in ARLP. Alliance GP, LLC, which is indirectly wholly owned by Mr. Craft, is the direct owner of MGP.

Acquisitions

JC Resources

On February 22, 2023, we acquired 2,682 oil & gas net royalty acres in the Delaware Basin from JC Resources LP (“JC Resources”), an entity owned by Mr. Craft, for $72.3 million (“JC Resources Acquisition”).

Skyland

On December 7, 2023, we acquired 2,372 oil & gas net royalty acres in the Anadarko, Williston and Delaware Basins from Skyland Minerals, L.P. (“Skyland”) and Haymaker Minerals & Royalties II, LLC (“Haymaker”) for a purchase price of $14.5 million (“Skyland Acquisition”).

Elk Range

On October 31, 2025, we acquired approximately 190 oil & gas net royalty acres in the Midland and Delaware Basins from 89 Energy II Minerals, LLC (“89 Energy”) for a purchase price of $10.0 million (“Elk Range Acquisition”).

The JC Resources, Skyland and Elk Range Acquisitions enhanced our ownership position in various basins and furthered our business strategy to grow our Oil & Gas Royalties segment through accretive acquisitions. See Note 4 – Acquisitions for more information.

Infinitum

On September 8, 2023, we purchased shares of Series E Preferred Stock (“Series E Preferred Stock”) for $24.6 million in Infinitum Electric, Inc. (“Infinitum”), a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators that have the potential to result in motors that are smaller, lighter, quieter, more efficient and capable of operating at a fraction of the carbon footprint of conventional electric motors. On December 31, 2025, we purchased shares of Series F Preferred Stock (“Series F Preferred Stock”) for $14.9 million in Infinitum. For more information on this investment, please see Note 10 – Investments.

Gavin Generation

In February 2025, we committed to invest up to $25.0 million of limited partner interests in Gavin Generation Holdings A, LP (“Gavin Generation”). Gavin Generation owns, indirectly, an interest in a joint venture holding company formed with a third party that indirectly owns and operates a coal-fired power plant. For more information on this investment, please see Note 3 – Variable Interest Entities.

The Infinitum and Gavin Generation investments further our business strategy to pursue opportunities that support the growth and development of energy and related infrastructure and leverage our core competencies and build platforms for future lines of business with long-term growth and cash flow generation.

Presentation

The consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of December 31, 2025 and 2024, and results of our operations, comprehensive income, cash flows and changes in partners’ capital for each of the three years in the period ended December 31, 2025. All of our intercompany transactions and accounts have been eliminated.