ALLIANCE RESOURCE PARTNERS LP

We utilize the two-class method in calculating basic and diluted earnings per limited partner unit (“EPU”). Subsequent to 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. Participating securities represent outstanding restricted unit awards under our LTIP. During 2024 and 2023, our participating securities also included phantom units in notional accounts under our SERP and Directors’ Deferred Compensation Plan. The SERP and Directors’ Deferred Compensation Plan were terminated and settled in December 2024 and no longer have participating securities that receive an allocation of income.

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.