ALLIANCE RESOURCE PARTNERS LP

We acquired certain derivative instruments, which were not designated as hedging instruments for accounting purposes, as part of the AllDale III & IV Acquisition. We are not actively entering into new derivative instruments. These derivative instruments were entered into to mitigate the commodity price risk associated with the mineral interests we

acquired and not for speculative or trading purposes. See Note 5 – Fair Value Measurements for additional fair value information and Note 4 – Acquisitions for more information on the AllDale III & IV Acquisition.

The table below summarizes the fair values and classifications of our derivative instruments, which are not designated as hedging instruments, in our condensed consolidated balance sheets:

We do not offset derivative assets and liabilities with the same counterparty. Accordingly, the amounts presented above represent both the gross fair values and the carrying values reported in our condensed consolidated balance sheets.

Changes in the fair values of our derivative assets and liabilities are presented on a net basis in our condensed consolidated statements of income and condensed consolidated statements of cash flows. Any cash impacts of settled derivative instruments are recorded as operating activities in our condensed consolidated statements of cash flows. These changes consist of the following:

The table below summarizes the pre-tax impacts of our derivative instruments, which are not designated as hedging instruments for accounting purposes, withinLoss on derivative instruments, net on our condensed consolidated statements of income:

We had the following open derivative contracts for oil as of September 30, 2026:

As of September 30, 2026, we hadno open natural gas derivative contracts. We didnot enter into any new oil or natural gas derivative contracts subsequent to September 30, 2026. As of September 30, 2026, we hadtwo derivative counterparties, both of which are rated Baa1 or better by Moody’s. None of our derivative instrument contracts contain credit-risk related contingent features and we had no cash collateral posted to our derivative counterparties as of September 30, 2026.