ALLIANCE RESOURCE PARTNERS LP
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 2026
ARLP$24.39-1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001104659-26-092001
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001104659-26-123864
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 100 previous paragraphs and 116 current paragraphs.
53 unchanged; 37 reworded; 24 added; 7 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 41 previous and 58 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
On September 30, 2026, we completed the Two Mile Acquisition for approximately $16.7 million, which was funded with cash on hand. For more information, please see “Item 1. Financial Statements (Unaudited) – Note 4 – Acquisitions.”
Current report
On November 2, 2026, we acquired certain assets and liabilities of Auxier Welding, Inc. (“Auxier”) for $23.2 million. The assets and liabilities acquired were used by Auxier to design, fabricate, manufacture, repair, service, and supply mining, industrial, and related equipment, components, systems, and parts. This acquisition will supplement our internal rebuild and technical services for equipment used at our coal operations’ mining complexes. We funded $17.2 million using cash on hand and deferred $6.0 million to be paid out in two $3.0 million installments on or prior to December 1, 2027 and 2028.
Current report
Beginning in the quarter ended September 30, 2026, we updated the definition of Segment Adjusted EBITDA to be inclusive of noncontrolling interest and Segment Adjusted EBITDA attributable to ARLP to be the measure we use to analyze our performance. Segment Adjusted EBITDA attributable to ARLP is Segment Adjusted EBITDA excluding amounts attributable to noncontrolling interest. The new definition of Segment Adjusted EBITDA attributable to ARLP is consistent with our previous definition of Segment Adjusted EBITDA that excluded noncontrolling interest; however, we now have the ability to focus either on the performance of our operations both including or excluding noncontrolling interest. Segment Adjusted EBITDA attributable to ARLP is our primary measure of profit or loss. Because Illinois Basin Coal Operations, Appalachia Coal Operations, Coal Royalties, and Other, Corporate and Eliminations do not have noncontrolling interests, the amounts for Segment Adjusted EBITDA are the same as Segment Adjusted EBITDA attributable to ARLP.
Current report
several mines and the benefits of investment in infrastructure over the past several years that has translated into lower-cost production as well as the following per ton cost decreases:
Current report
partially offsetting these decreases was an increase of $0.43 per ton for miscellaneous materials and supplies.
Current report
Equity method investment income
Current report
Loss on derivative instruments, net
Current report
Loss on derivative instruments, net was $7.3 million in the 2026 Quarter primarily due to changes in oil & gas prices decreasing the fair value of our derivative positions that we acquired in the AllDale III & IV Acquisition.
Current report
Acquisition gain
Current report
We recorded a non-cash acquisition gain of $6.3 million in the 2026 Quarter as a result of the remeasurement to fair value of our previously held equity investment in AllDale III in connection with the AllDale III & IV Acquisition.
Current report
Income tax expense
Current report
Income tax expense increased by $13.2 million in the 2026 Quarter compared to the 2025 Quarter. The increase was primarily due to higher taxable income and deferred taxes primarily resulting from the acquisition of AllDale III and AllDale IV.
Current report
Segment Adjusted EBITDA attributable ARLP
Current report
partially offset by an increase of $0.47 per ton for roof support.
Current report
General and administrative
Current report
Equity method investment income
Current report
Net income attributable to ARLP for the 2026 Period remained consistent with the 2025 Period. In the 2026 Period, net income attributable to ARLP benefited from higher revenues, lower operating expenses, reduced outside coal purchases, increased equity method investment income and the impact of an impairment loss taken in the 2025 Period. Offsetting these increases were higher depreciation, the change in the fair value of our digital assets, increased income tax expense and a $37.8 million non-cash asset impairment charge during the 2026 Period at our Mettiki mine.
Current report
Segment Adjusted EBITDA attributable to ARLP
Current report
Segment Adjusted EBITDA and Segment Adjusted EBITDA attributable to ARLP
Current report
Commodity Derivatives
Current report
In the AllDale III & IV Acquisition we acquired various derivative instruments entered into to mitigate the impact of commodity price volatility on cash generated from a portion of production on our oil & gas mineral interests. We have not designated our derivative instruments as fair value or cash flow hedges, even though they reduce our exposure to changes in oil and natural gas prices; therefore, the gains and losses arising from changes in fair value affect the amount of income we ultimately realize. We are not actively entering into new derivative instruments.
Current report
Our open derivative contracts consist of fixed-price swap contracts. Under fixed-price swap contracts, a counterparty is required to make a payment to us if the settlement price is less than the swap strike price. Conversely, we are required to make a payment to the counterparty if the settlement price is greater than the swap strike price. Our open oil derivative contracts as of September 30, 2026 are detailed in “Item 1. Financial Statements (Unaudited) – Note 8 – Derivative Financial Instruments.”
Current report
Two Mile Acquisition
Current report
On September 30, 2026, we completed the Two Mile Acquisition for approximately $16.7 million, which was funded with cash on hand. For more information, please see “Item 1. Financial Statements (Unaudited) – Note 4 – Acquisitions.”
Removed paragraphs (7)
Previous report
higher-priced legacy contracts. Higher coal sales volumes were primarily driven by increased volumes at our River View and Tunnel Ridge operations due to improved recoveries and higher productivity.
Previous report
Equity method investment income (loss)
Previous report
Segment Adjusted EBITDA Expense decreased 4.1% to $671.0 million for the 2026 Period compared to $699.6 million for the 2025 Period primarily due to decreased expenses at our coal operations and a $6.5 million benefit from the correction of black lung actuarial assumptions during the 2026 Period.
Previous report
Equity method investment income (loss)
Previous report
Impairment loss on investments
Previous report
Net income attributable to ARLP for the 2026 Period decreased 33.5% to $88.7 million, or $0.68 per basic and diluted limited partner unit, compared to $133.4 million, or $1.03 per basic and diluted limited partner unit for the 2025 Period, primarily as a result of lower revenues, higher depreciation, a decrease in the fair value of our digital assets, and the non-cash asset impairment charges at Mettiki, partially offset by the $25.0 million impairment loss on investments in the 2025 Period, higher equity method investment income and lower outside coal purchases.
Previous report
AllDale III & IV Acquisition
Reworded paragraphs (37)
Previous wording
During the six months ended June 30, 2026, we acquired 881 oil & gas net royalty acres through a series of transactions in the Permian Basin for an aggregate cash purchase price of $22.0 million which was funded with cash on hand. The interests include royalty interests in both developed properties and undeveloped properties. Please see “Item 1. Financial Statements (Unaudited) – Note 4 – Acquisitions” for additional information.
Current wording
During the nine months ended September 30, 2026, excluding the AllDale III & IV and Two Mile acquisitions discussed below, we acquired 1,467 oil & gas net royalty acres through a series of transactions in the Permian Basin for an aggregate cash purchase price of $31.9 million which was funded with cash on hand. The interests include royalty interests in both developed properties and undeveloped properties. Please see “Item 1. Financial Statements (Unaudited) – Note 4 – Acquisitions” for additional information.
Previous wording
In January 2026, we announced our decision to cease longwall production at our Mettiki mining complex due to a series of planned and unplanned outages at a key customer’s plant. While limited coal production is ongoing with continuous mining units, we continue to evaluate options concerning the mine’s future. Please see “Item 1. Financial Statements (Unaudited) – Note 8 – Long-Lived Asset Impairment” for additional information.
Current wording
In January 2026, we announced our decision to cease longwall production at our Mettiki mining complex due to a series of planned and unplanned outages at a key customer’s plant. The mine has transitioned from a longwall mine to a continuous mining unit operation to better align production with customer demand. Please see “Item 1. Financial Statements (Unaudited) – Note 9 – Long-Lived Asset Impairment” for additional information.
Previous wording
Our management uses a variety of financial and operational measurements to analyze our performance. Primary measurements include the following: (1) coal volumes; (2) coal sales; (3) oil & gas volumes; (4) oil & gas royalties; (5) intercompany coal royalties; (6) Segment Adjusted EBITDA Expense; and (7) Segment Adjusted EBITDA. Please see below and “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional information.
Current wording
Our management uses a variety of financial and operational measurements to analyze our performance. Primary measurements include the following: (1) coal volumes; (2) coal sales; (3) oil & gas volumes; (4) oil & gas royalties; (5) intercompany coal royalties; (6) Segment Adjusted EBITDA Expense; and (7) Segment Adjusted EBITDA attributable to ARLP. Please see below and “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional information.
Previous wording
Total revenues for the three months ended June 30, 2026 (“2026 Quarter”) increased 0.7% to $551.6 million compared to $547.5 million for the three months ended June 30, 2025 (“2025 Quarter”) as a result of record oil & gas royalty revenues, increased coal sales volumes and higher other revenues, partially offset by lower coal sales prices per ton.
Current wording
Total revenues for the three months ended September 30, 2026 (“2026 Quarter”) increased 5.5% to $603.0 million compared to $571.4 million for the three months ended September 30, 2025 (“2025 Quarter”) as a result of record oil & gas royalty revenues, increased coal sales volumes and higher other revenues, partially offset by lower coal sales price per ton.
Previous wording
Segment Adjusted EBITDA Expense for our coal operations decreased 3.2% to $656.6 million due to lower per ton costs, partially offset by higher coal sales volumes. Segment Adjusted EBITDA Expense per ton sold for our coal operations decreased 4.7% to $39.99 per ton sold in the 2026 Period compared to $41.98 per ton in the 2025 Period, primarily due to increased production at several mines as well as the following per ton cost decreases:
Current wording
Segment Adjusted EBITDA Expense decreased 5.6% to $339.3 million for the 2026 Quarter compared to $359.3 million for the 2025 Quarter primarily due to decreased expenses at our coal operations. Segment Adjusted EBITDA Expense for our coal operations decreased 6.6% to $333.1 million due to lower per ton costs, partially offset by higher coal sales volumes. Segment Adjusted EBITDA Expense per ton sold for our coal operations decreased 13.1% to $35.64 per ton sold in the 2026 Quarter compared to $40.99 per ton in the 2025 Quarter, primarily due to increased production at
Previous wording
General and administrative expenses for the 2026 Quarter increased to $25.8 million compared to $20.4 million in the 2025 Quarter. The increase of $5.4 million was primarily due to higher incentive compensation expenses and increased outside services.
Current wording
General and administrative expenses for the 2026 Quarter increased to $27.1 million compared to $21.4 million in the 2025 Quarter. The increase of $5.7 million was primarily due to higher incentive compensation expenses and increased outside services.
Previous wording
Equity method investment income was $9.5 million in the 2026 Quarter compared to a loss of $1.5 million in the 2025 Quarter. The change was primarily due to an increase in the value of our share of the net assets of Gavin Generation and NGP ET IV.
Current wording
Equity method investment income was $12.8 million in the 2026 Quarter compared to $4.5 million in the 2025 Quarter. The change was primarily due to increased investment income at Gavin Generation and an increase in the fair value of the net assets at both Gavin Generation and NGP ET IV.
Previous wording
The fair value adjustment on our digital assets decreased by $19.2 million for the 2026 Quarter compared to the 2025 Quarter reflecting movement in the price of bitcoin.
Current wording
The fair value adjustment on our digital assets increased by $12.7 million for the 2026 Quarter compared to the 2025 Quarter reflecting movement in the price of bitcoin.
Previous wording
Net income attributable to ARLP for the 2026 Quarter increased 33.9% to $79.6 million, or $0.61 per basic and diluted limited partner unit, compared to $59.4 million, or $0.46 per basic and diluted limited partner unit for the 2025 Quarter, primarily as a result of higher total revenues and equity method investment income as well as the impact of the impairment loss on investments in the 2025 Quarter.
Current wording
Net income attributable to ARLP for the 2026 Quarter increased 46.8% to $139.6 million, or $1.08 per basic and diluted limited partner unit, compared to $95.1 million, or $0.73 per basic and diluted limited partner unit for the 2025 Quarter, primarily as a result of higher total revenues and equity method investment income, lower operating expenses, increase in the fair value of our digital assets and the acquisition gain. Partially offsetting these increases were higher income tax expenses and a loss on derivative instruments.
Previous wording
Our 2026 Quarter Segment Adjusted EBITDA increased 16.0% to $211.5 million from the 2025 Quarter Segment Adjusted EBITDA of $182.3 million.
Current wording
Our 2026 Quarter Segment Adjusted EBITDA attributable to ARLP increased 26.3% to $260.9 million from the 2025 Quarter Segment Adjusted EBITDA attributable to ARLP of $206.5 million.
Previous wording
Illinois Basin Coal Operations – Segment Adjusted EBITDA decreased 8.8% to $104.2 million in the 2026 Quarter from $114.2 million in the 2025 Quarter. The decrease of $10.0 million was primarily attributable to lower average coal sales volumes. Tons sold decreased by 4.5% compared to the 2025 Quarter due primarily to decreased sales volumes from our Hamilton mine as a result of a planned extended longwall move during the 2026 Quarter, partially offset by a strong sales performance and productivity at our River View complex. Segment Adjusted EBITDA Expense decreased to $229.2 million in the 2026 Quarter from $231.2 million in the 2025 Quarter, primarily as a result of reduced volumes, partially offset by increased operating expenses per ton. Segment Adjusted EBITDA Expense per ton increased by 3.7% compared to the 2025 Quarter due primarily to the planned extended longwall move at our Hamilton mine during the 2026 Quarter.
Current wording
Illinois Basin Coal Operations – Segment Adjusted EBITDA increased 32.6% to $139.7 million in the 2026 Quarter from $105.4 million in the 2025 Quarter. The increase of $34.3 million was primarily attributable to higher average coal sales volumes and lower operating expenses. Tons sold increased by 6.4% compared to the 2025 Quarter due primarily to increased sales volumes from our Hamilton mine following an extended longwall move earlier in 2026. Segment Adjusted EBITDA Expense decreased to $223.5 million in the 2026 Quarter from $233.8 million in the 2025 Quarter, primarily as a result of reduced operating expenses per ton. Segment Adjusted EBITDA Expense per ton decreased by 10.2% compared to the 2025 Quarter due to higher production at Hamilton and improved per ton costs at our River View operation.
Previous wording
Appalachia Coal Operations – Segment Adjusted EBITDA increased 67.2% to $49.2 million for the 2026 Quarter from $29.4 million in the 2025 Quarter. The increase of $19.8 million was primarily attributable to reduced operating expenses and higher other revenues, partially offset by lower coal sales. The decrease in coal sales primarily reflects lower coal sales prices, which decreased by 22.9% compared to the 2025 Quarter primarily due to an increased sales mix of lower priced Tunnel Ridge sales volumes in the 2026 Quarter and reduced sales price per ton at Mettiki. Partially offsetting lower coal sales prices, coal sales volumes increased 27.6% compared to the 2025 Quarter primarily as a result of increased production at Tunnel Ridge due to improved recoveries and higher productivity. Other revenues increased by $10.6 million in the 2026 Quarter reflecting higher miscellaneous revenue activities. Segment Adjusted EBITDA Expense decreased 10.2% to $101.3 million in the 2026 Quarter from $112.8 million in the 2025 Quarter due primarily to lower per ton expenses, partially offset by increased sales volumes. Segment Adjusted EBITDA Expense per ton for the 2026 Quarter decreased by 29.7% compared to the 2025 Quarter as a result of increased production at our Tunnel Ridge operation.
Current wording
Appalachia Coal Operations – Segment Adjusted EBITDA decreased 10.4% to $48.5 million for the 2026 Quarter from $54.1 million in the 2025 Quarter. The decrease of $5.6 million was primarily attributable to lower coal sales, partially offset by reduced operating expenses and higher other revenues. The decrease in coal sales primarily reflects lower coal sales prices, which decreased by 25.1% compared to the 2025 Quarter primarily due to an increased sales mix of lower priced Tunnel Ridge volumes and lower sales price per ton at Tunnel Ridge and Mettiki. Partially offsetting lower coal sales prices, coal sales volumes increased 10.7% compared to the 2025 Quarter primarily as a result of increased production at Tunnel Ridge due to a longwall move in the 2025 Quarter. Other revenues increased by $7.3 million in the 2026 Quarter reflecting higher miscellaneous revenue activities. Segment Adjusted EBITDA Expense decreased 11.4% to $107.1 million in the 2026 Quarter from $120.8 million in the 2025 Quarter due primarily to lower per ton expenses, partially offset by increased sales volumes. Segment Adjusted EBITDA Expense per ton for the 2026 Quarter decreased by 19.9% compared to the 2025 Quarter as a result of increased production at our Tunnel Ridge operation as well as a higher sales mix of lower-cost Tunnel Ridge volumes.
Previous wording
Oil & Gas Royalties – Segment Adjusted EBITDA increased to a record $38.0 million in the 2026 Quarter compared to $29.9 million in the 2025 Quarter primarily due to higher average sales prices, which increased 22.7%, partially offset by higher expenses. Oil & gas royalty volumes increased 6.4% compared to the 2025 Quarter as a result of increased drilling and completion activities on our acreage combined with additional volumes from oil & gas mineral interests acquired.
Current wording
Oil & Gas Royalties – Segment Adjusted EBITDA attributable to ARLP increased to a record $43.6 million in the 2026 Quarter compared to $27.0 million in the 2025 Quarter primarily due to increased sales volumes and higher average sales prices, partially offset by higher expenses. Oil & gas royalty volumes increased significantly in the 2026 Quarter primarily due to additional volumes from the AllDale III & IV Acquisition. Average sales price per BOE increased 15.5% compared to the 2025 Quarter on higher realized crude oil prices, partially offset by a higher natural gas volume mix following the AllDale III & IV Acquisition.
Previous wording
Coal Royalties – Segment Adjusted EBITDA increased to $13.0 million in the 2026 Quarter compared to $11.8 million in the 2025 Quarter due to higher royalty tons sold, primarily from Tunnel Ridge and River View, partially offset by higher expenses.
Current wording
Coal Royalties – Segment Adjusted EBITDA increased to $18.2 million in the 2026 Quarter compared to $17.1 million in the 2025 Quarter due to higher royalty tons sold, primarily from Tunnel Ridge and Hamilton, partially offset by higher expenses.
Previous wording
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Current wording
Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025
Previous wording
Total revenues for the six months ended June 30, 2026 (“2026 Period”) decreased 1.9% to $1.07 billion compared to $1.09 billion for the six months ended June 30, 2025 (“2025 Period”) primarily due to lower coal sales, partially offset by record oil & gas royalty revenues.
Current wording
Total revenues for the nine months ended September 30, 2026 (“2026 Period”) increased 0.7% to $1.67 billion compared to $1.66 billion for the nine months ended September 30, 2025 (“2025 Period”) primarily due to record oil & gas royalty revenues and higher other revenues, partially offset by lower coal sales.
Previous wording
Segment Adjusted EBITDA Expense decreased 3.8% to $340.0 million for the 2026 Quarter compared to $353.5 million for the 2025 Quarter primarily due to decreased expenses at our coal operations. Segment Adjusted EBITDA Expense for our coal operations decreased 4.3% to $331.0 million due to lower per ton costs, partially offset by higher coal sales volumes. Segment Adjusted EBITDA Expense per ton sold for our coal operations decreased 6.3% to $38.68 per ton sold in the 2026 Quarter compared to $41.27 per ton in the 2025 Quarter, primarily due to increased production at several mines as well as the following per ton cost decreases:
Current wording
Segment Adjusted EBITDA Expense decreased 4.6% to $1.01 billion for the 2026 Period compared to $1.06 billion for the 2025 Period primarily due to decreased expenses at our coal operations. Segment Adjusted EBITDA Expense for our coal operations decreased 4.4% to $989.7 million due to lower per ton costs, partially offset by higher coal sales volumes. Segment Adjusted EBITDA Expense per ton sold for our coal operations decreased 7.7% to $38.41 per ton sold in the 2026 Period compared to $41.63 per ton in the 2025 Period, primarily due to increased production at several mines as well as the following per ton cost decreases:
Previous wording
Depreciation, depletion and amortization expense increased to $163.6 million for the 2026 Period compared to $145.0 million for the 2025 Period primarily as a result of new mine infrastructure and equipment placed in service during the second half of 2025 at our Hamilton and River View operations as well as increased sales volumes in the 2026 Period.
Current wording
Depreciation, depletion and amortization expense increased to $245.9 million for the 2026 Period compared to $223.2 million for the 2025 Period primarily as a result of new mine infrastructure and equipment placed in service during the second half of 2025 at our Hamilton and River View operations as well as increased sales volumes in the 2026 Period.
Previous wording
During the 2026 Period, we recorded $37.8 million of non-cash asset impairment charges due to our decision to cease longwall production at our Mettiki mining complex, along with uncertainty regarding future longwall production resumption and our evaluation of potential operation scenarios. Please read "Item 1. Financial Statements (Unaudited) – Note 8 – Long-Lived Asset Impairments."
Current wording
During the 2026 Period, we recorded $37.8 million of non-cash asset impairment charges due to our decision to cease longwall production at our Mettiki mining complex, along with uncertainty regarding future longwall production resumption and our evaluation of potential operation scenarios. Please read "Item 1. Financial Statements (Unaudited) – Note 9 – Long-Lived Asset Impairment."
Previous wording
Equity method investment income was $13.8 million in the 2026 Period compared to a loss of $3.5 million in the 2025 Period. The change was primarily due to an increase in the value of our share of the net assets of Gavin Generation and NGP ET IV.
Current wording
Equity method investment income was $26.5 million in the 2026 Period compared to $0.9 million in the 2025 Period. The change was primarily due to increased investment income at Gavin Generation and an increase in the fair value of the net assets at both Gavin Generation and NGP ET IV.
Previous wording
The fair value adjustment on our digital assets decreased by $25.3 million for the 2026 Period compared to the 2025 Period reflecting movement in the price of bitcoin.
Current wording
The fair value adjustment on our digital assets decreased by $12.5 million for the 2026 Period compared to the 2025 Period reflecting movement in the price of bitcoin.
Previous wording
Our 2026 Period Segment Adjusted EBITDA increased 7.6% to $390.6 million from the 2025 Period Segment Adjusted EBITDA of $362.8 million.
Current wording
Our 2026 Period Segment Adjusted EBITDA attributable to ARLP increased 14.5% to $650.1 million from the 2025 Period Segment Adjusted EBITDA attributable to ARLP of $567.8 million.
Previous wording
Illinois Basin Coal Operations – Segment Adjusted EBITDA decreased 15.4% to $203.4 million in the 2026 Period from $240.4 million in the 2025 Period. The decrease of $37.0 million was primarily attributable to lower coal sales. The decrease in coal sales reflects lower coal sales prices, which decreased by 3.4% compared to the 2025 Period as a result of the expiration of higher priced legacy contracts, and decreased coal sales volumes. Tons sold decreased by 2.1% compared to the 2025 Period due primarily to decreased sales volumes from our Hamilton mine as a result of the planned extended longwall move during the 2026 Period, partially offset by a strong sales performance and productivity at our River View complex. Segment Adjusted EBITDA Expense remained comparable to the 2025 Period as reduced sales volumes substantially offset higher per ton costs. Segment Adjusted EBITDA Expense per ton increased by 2.6% compared to the 2025 Period due primarily to the planned extended longwall move at our Hamilton mine during the 2026 Period.
Current wording
Illinois Basin Coal Operations – Segment Adjusted EBITDA decreased to $343.2 million in the 2026 Period from $345.8 million in the 2025 Period. The decrease of $2.6 million was primarily attributable to lower coal sales partially offset by reduced operating expenses. The decrease in coal sales reflects lower coal sales prices, which decreased by 2.2% compared to the 2025 Period as a result of the expiration of higher priced legacy contracts. Segment Adjusted EBITDA Expense decreased to $664.6 million in the 2026 Period from $675.0 million in the 2025 Period, primarily as a result of reduced operating expenses per ton. Segment Adjusted EBITDA Expense per ton decreased by 2.3% compared to the 2025 Period due primarily to increased sales volumes from our River View operations during the 2026 Period.
Previous wording
Appalachia Coal Operations – Segment Adjusted EBITDA increased 67.4% to $75.4 million for the 2026 Period from $45.0 million in the 2025 Period. The increase of $30.4 million was primarily attributable to reduced operating expenses and higher other revenues, partially offset by lower coal sales. The decrease in coal sales primarily reflects lower coal sales prices, which decreased by 14.8% compared to the 2025 Period primarily due to an increased sales mix of lower priced Tunnel Ridge sales volumes in the 2026 Period and reduced sales price per ton at Mettiki. Partially offsetting lower coal sales prices, coal sales volumes increased 15.6% compared to the 2025 Period primarily as a result of increased production at Tunnel Ridge due to improved recoveries, higher productivity, and fewer longwall move days during the
Current wording
Appalachia Coal Operations – Segment Adjusted EBITDA increased 25.0% to $123.8 million for the 2026 Period from $99.1 million in the 2025 Period. The increase of $24.7 million was primarily attributable to reduced operating expenses and higher other revenues, partially offset by lower coal sales. The decrease in coal sales primarily reflects lower coal sales prices, which decreased by 18.7% compared to the 2025 Period primarily due to an increased sales mix of lower priced Tunnel Ridge sales volumes in the 2026 Period and reduced sales price per ton at Tunnel Ridge and Mettiki. Partially offsetting lower coal sales prices, coal sales volumes increased 13.7% compared to the 2025 Period primarily as a result of increased production at Tunnel Ridge due to improved recoveries, higher productivity, and fewer longwall move days during the 2026 Period. Other revenues increased by $21.1 million in the 2026 Period reflecting higher miscellaneous revenue activities. Segment Adjusted EBITDA Expense decreased 9.7% to $319.8 million in the 2026 Period from $354.2 million in the 2025 Period due primarily to lower per ton expenses, partially offset by increased sales volumes. Segment Adjusted EBITDA Expense per ton for the 2026 Period decreased by 20.6% compared to the 2025 Period as a result of increased production at our Tunnel Ridge operation as well as a higher sales mix of lower-cost Tunnel Ridge volumes.
Previous wording
Oil & Gas Royalties – Segment Adjusted EBITDA increased to a record $72.6 million in the 2026 Period compared to $59.8 million in the 2025 Period due to record oil & gas royalty volumes, which increased 11.3% as a result of increased drilling and completion activities on our interests and acquisitions of additional oil & gas mineral interests, and higher average sales prices, which increased 10.1% compared to the 2025 Period.
Current wording
Oil & Gas Royalties – Segment Adjusted EBITDA attributable to ARLP increased to a record $115.0 million in the 2026 Period compared to $85.2 million in the 2025 Period primarily due to increased sales volumes and higher average sales prices, partially offset by higher expenses. Oil & gas royalty volumes increased significantly in the 2026 Period primarily due to additional volumes from the AllDale III & IV Acquisition, increased drilling and completion activities on our interests, and other acquisitions of oil & gas mineral interests. Average sales price per BOE increased 11.0% compared to the 2025 Period.
Previous wording
Coal Royalties – Segment Adjusted EBITDA increased to $25.2 million in the 2026 Period compared to $21.2 million in the 2025 Period due to higher royalty tons sold, primarily from Tunnel Ridge and River View, partially offset by lower average royalty rates per ton received from the Partnership’s mining subsidiaries.
Current wording
Coal Royalties – Segment Adjusted EBITDA increased to $43.4 million in the 2026 Period compared to $38.3 million in the 2025 Period due to higher royalty tons sold, primarily from Tunnel Ridge and River View, partially offset by lower average royalty rates per ton received from the Partnership’s mining subsidiaries.
Previous wording
We define Segment Adjusted EBITDA (a non-GAAP financial measure) 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 a key component of consolidated Adjusted 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 consolidated Adjusted EBITDA provides useful information to investors regarding our performance and results of operations because Adjusted 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.
Current wording
We define Segment Adjusted EBITDA (a non-GAAP financial measure) as net income 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 attributable to ARLP (a non-GAAP financial measure) is defined as Segment Adjusted EBITDA excluding amounts attributable to noncontrolling interests. Segment Adjusted EBITDA attributable to ARLP is a key component of consolidated Adjusted EBITDA attributable to ARLP, 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 consolidated Adjusted EBITDA attributable to ARLP provides useful information to investors regarding our performance and results of operations because Adjusted EBITDA attributable to ARLP, 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.
Previous wording
Segment Adjusted EBITDA is also used as a supplemental measure by our management for reasons similar to those stated in the previous explanation of Adjusted EBITDA. In addition, the exclusion of corporate general and administrative expenses from 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.
Current wording
Segment Adjusted EBITDA attributable to ARLP is also used as a supplemental measure by our management for reasons similar to those stated in the previous explanation of Adjusted EBITDA attributable to ARLP. In addition, the exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA attributable to ARLP 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, and also allows management to evaluate the portion of operating performance attributable to our unitholders and available for reinvestment or distribution.
Previous wording
The following is a reconciliation of net income, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA:
Current wording
The following is a reconciliation of net income, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA and Segment Adjusted EBITDA attributable to ARLP:
Previous wording
We have $80.6 million remaining authorized under our unit repurchase program as of June 30, 2026. No units were repurchased during the six months ended June 30, 2026. The program has no time limit and we may repurchase units from time to time in the open market or in other privately negotiated transactions. The unit repurchase program authorization does not obligate us to repurchase any dollar amount or number of units. The timing of any future unit repurchases and the ultimate number of units to be purchased will depend on several factors, including business and market conditions, our future financial performance, and other capital priorities. Please read “Part II - Item 2. Unregistered Sales of Equity Securities and Use of Proceeds” of this Quarterly Report on Form 10-Q for more information on the unit repurchase program.
Current wording
We have $80.6 million remaining authorized under our unit repurchase program as of September 30, 2026. No units were repurchased during the nine months ended September 30, 2026. The program has no time limit and we may repurchase units from time to time in the open market or in other privately negotiated transactions. The unit repurchase program authorization does not obligate us to repurchase any dollar amount or number of units. The timing of any future unit repurchases and the ultimate number of units to be purchased will depend on several factors, including business and market conditions, our future financial performance, and other capital priorities. Please read “Part II - Item 2. Unregistered Sales of Equity Securities and Use of Proceeds” of this Quarterly Report on Form 10-Q for more information on the unit repurchase program.
Previous wording
On July 1, 2026, Alliance Minerals, as borrower, entered into a term loan for an aggregate principal amount of $150.0 million (the “Alliance Minerals Term Loan”). The Alliance Minerals Term Loan matures on January 1, 2028. For additional information on the Alliance Minerals Term Loan, please see “Item 1. Financial Statements (Unaudited) – Note 10 – Long-Term Debt.”
Current wording
On July 1, 2026, Alliance Minerals, as borrower, entered into a term loan for an aggregate principal amount of $150.0 million (the “Alliance Minerals Term Loan”). The Alliance Minerals Term Loan matures on January 1, 2028. For
Previous wording
On July 1, 2026, we completed the AllDale III & IV Acquisition for approximately $206.2 million, which was funded using a combination of cash on hand, borrowings under our revolving credit facility and proceeds from the Alliance Minerals Term Loan.
Current wording
On July 1, 2026, we completed the AllDale III & IV Acquisition for approximately $206.2 million, which was funded using a combination of cash on hand, borrowings under our revolving credit facility and proceeds from the Alliance Minerals Term Loan. For more information, please see “Item 1. Financial Statements (Unaudited) – Note 4 – Acquisitions.”
Previous wording
Cash provided by operating activities was $258.5 million for the 2026 Period compared to $297.4 million for the 2025 Period. The decrease in cash provided by operating activities was primarily due to the decrease in net income adjusted for non-cash items and unfavorable working capital changes primarily related to trade and other receivables. These
Current wording
Cash provided by operating activities was $511.5 million for the 2026 Period compared to $507.3 million for the 2025 Period. The increase in cash provided by operating activities was primarily due to the increase in net income adjusted for non-cash items and favorable working capital changes primarily related to accrued payroll and related benefits, prepaid expenses and other miscellaneous changes compared to the 2025 Period. These increases were partially offset by unfavorable working capital changes primarily related to trade and other receivables and inventories compared to the 2025 Period.
Previous wording
Net cash used in investing activities was $181.2 million for the 2026 Period compared to $168.3 million for the 2025 Period. The increase in cash used in investing activities was primarily due to increased oil & gas reserve acquisitions in the 2026 Period as compared to the 2025 Period. This increase was partially offset by decrease in accounts payable and accrued liabilities and reduced capital expenditure during the 2026 Period.
Current wording
Net cash used in investing activities was $462.5 million for the 2026 Period compared to $251.0 million for the 2025 Period. The increase in cash used in investing activities was primarily due to increased business combination acquisitions including the AllDale III & IV Acquisition in the 2026 Period as compared to the 2025 Period. This increase was partially offset by decreases in contributions to equity method investments and reduced capital expenditures during the 2026 Period.
Previous wording
Net cash used in financing activities was $37.4 million for the 2026 Period compared to $211.2 million for the 2025 Period. The decrease in cash used in financing activities was primarily attributable to increased borrowings under both the revolving credit facility and Securitization Facility and reduced distributions paid to partners in the 2026 Period as compared to the 2025 Period. These decreases were partially offset by increased payments on the revolving credit facility and Securitization Facility in the 2026 Period compared to the 2025 Period.
Current wording
Net cash used in financing activities was $35.5 million for the 2026 Period compared to $298.8 million for the 2025 Period. The decrease in cash used in financing activities was primarily attributable to increased borrowings under both the revolving credit facility and Securitization Facility, proceeds received under the Alliance Minerals Term Loan, and reduced distributions paid to partners in the 2026 Period as compared to the 2025 Period. These decreases were partially offset by increased payments on the revolving credit facility and Securitization Facility in the 2026 Period compared to the 2025 Period.
Previous wording
Management anticipates having sufficient cash flow to meet 2026 cash requirements, including capital expenditures, acquisitions of oil & gas mineral interests, scheduled payments on long-term debt, lease obligations, asset retirement obligation costs and workers’ compensation and pneumoconiosis costs, with our June 30, 2026 cash and cash equivalents of $111.2 million, cash flows from operations, or borrowings under our revolving credit facility and Securitization Facility, if necessary. We project average estimated annual maintenance capital expenditures over the next five years of approximately $7.23 per ton produced. Our anticipated total capital expenditures, including maintenance capital expenditures, for 2026 are estimated in the range of $280.0 million to $300.0 million. We will continue to have significant cash requirements over the long term, which may require us to incur debt or seek additional equity capital. The availability and cost of additional capital will depend upon prevailing market conditions, the market price of our common units and several other factors over which we have limited control, as well as our financial condition and results of operations.
Current wording
Management anticipates having sufficient cash flow to meet 2026 cash requirements, including capital expenditures, acquisitions of oil & gas mineral interests, scheduled payments on long-term debt, lease obligations, asset retirement obligation costs and workers’ compensation and pneumoconiosis costs, with our September 30, 2026 cash and cash equivalents of $84.8 million, cash flows from operations, or borrowings under our revolving credit facility and Securitization Facility, if necessary. We project average estimated annual maintenance capital expenditures over the next five years of approximately $7.23 per ton produced. Our anticipated total capital expenditures, including maintenance capital expenditures, for 2026 are estimated in the range of $270.0 million to $290.0 million. We will continue to have significant cash requirements over the long term, which may require us to incur debt or seek additional equity capital. The availability and cost of additional capital will depend upon prevailing market conditions, the market price of our common units and several other factors over which we have limited control, as well as our financial condition and results of operations.
Previous wording
We have related-party transactions and activities with Mr. Craft, MGP and their respective affiliates as well as other related parties. These related-party transactions and activities relate principally to (1) an installment purchase obligation with The Joseph W. Craft III Foundation resulting from our January 2026 acquisition of ownership interests in certain coal reserves and associated surface rights that we had previously been leasing from The Joseph W. Craft III Foundation and The Kathleen S. Craft Foundation, (2) the use of aircraft, (3) master supply and services agreements for the purchase and servicing of electronic components and other parts used in mining equipment, and (4) contribution and exchange agreements entered with related parties of Mr. Craft in connection with the AllDale III & IV Acquisition on July 1, 2026. We also have related-party transactions with (a) WKY CoalPlay LLC, a company owned by entities related to Mr. Craft, regarding three mineral leases, and (b) entities in which we hold equity investments. For more information, please read “Item 1. Financial Statements (Unaudited) – Note 9– Investments, Note 10– Long-Term Debt and Note 17 – Related-Party Transactions” of this Quarterly Report on Form 10-Q. Please read our Annual Report on Form 10-K for the year ended December 31, 2025, “Item 8. Financial Statements and Supplementary Data—Note 21– Related-Party Transactions” for additional information concerning related-party transactions.
Current wording
We have related-party transactions and activities with Mr. Craft, MGP and their respective affiliates as well as other related parties. These related-party transactions and activities relate principally to (1) an installment purchase obligation with The Joseph W. Craft III Foundation resulting from our January 2026 acquisition of ownership interests in certain coal reserves and associated surface rights that we had previously been leasing from The Joseph W. Craft III Foundation and The Kathleen S. Craft Foundation, (2) the use of aircraft, (3) master supply and services agreements for the purchase and servicing of electronic components and other parts used in mining equipment, and (4) distributions associated with contribution and exchange agreements entered into with related parties of Mr. Craft in connection with the AllDale III & IV Acquisition on July 1, 2026. We also have related-party transactions with (a) WKY CoalPlay LLC, a company owned by entities related to Mr. Craft, regarding three mineral leases, and (b) entities in which we hold equity investments. For more information, please read “Item 1. Financial Statements (Unaudited) – Note 10– Investments, Note 11– Long-Term Debt, Note 16 – Noncontrolling Interests and Note 19 – Related-Party Transactions” of this Quarterly Report on Form 10-Q. Please read our Annual Report on Form 10-K for the year ended December 31, 2025, “Item 8. Financial Statements and Supplementary Data—Note 21– Related-Party Transactions” for additional information concerning related-party transactions.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
General and administrative expenses for the 2026 Period increased to $77.0 million compared to $62.3 million in the 2025 Period. The increase of $14.7 million was primarily due to higher incentive compensation expenses and increased outside services.
Current report — wording carried from elsewhere
additional information on the Alliance Minerals Term Loan, please see “Item 1. Financial Statements (Unaudited) – Note 11 – Long-Term Debt.”
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
During the 2025 Quarter, we recorded a $25.0 million impairment on our equity investment in Ascend. Please read “Item 1. Financial Statements (Unaudited) – Note 9 – Investments” for more information.
Previous report — wording carried elsewhere
2026 Period. Other revenues increased by $13.8 million in the 2026 Period reflecting higher miscellaneous revenue activities. Segment Adjusted EBITDA Expense decreased 8.9% to $212.7 million in the 2026 Period from $233.4 million in the 2025 Period due primarily to lower per ton expenses, partially offset by increased sales volumes. Segment Adjusted EBITDA Expense per ton for the 2026 Period decreased by 21.1% compared to the 2025 Period as a result of increased production at our Tunnel Ridge operation.
Previous report — wording carried elsewhere
decreases were partially offset by favorable working capital changes primarily related to inventories and other miscellaneous changes compared to the 2025 Period.