ALLIANCE RESOURCE PARTNERS LP

For the period ended Dec 31, 2024. Filed Feb 27, 2025.

About this filing

A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2024 · Filed Feb 27, 2025

ARLP$24.76+1.5%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

See the whole filing, with its images and exhibits

Contents

25. 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 and international utilities and industrial users 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. Ourtwo 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. Thetwo 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 and (d) the Hamilton mining complex. The segment also includes our Mt. Vernon Transfer Terminal, LLC 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 mining complex and (c) the MC Mining 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).

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. Approximately 63% of the coal sold by our coal operations’ mines is leased from our Coal Royalties entities.

Other, Corporate and Elimination includes marketing and administrative activities, the Matrix Group, Bitiki, which holds our crypto-mining activities (see Note 7 – Digital Assets), our investments in Francis, Infinitum, NGP ET IV and Ascend (see Note 3 – Variable Interest Entities and Note 10 – Equity Investments), Wildcat Insurance, which assists the ARLP Partnership with its insurance requirements, and AROP Funding and Alliance Finance (both discussed in Note 12 – 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)
Year Ended December 31, 2024

Revenues - Outside	$1,496,143	$743,242	$139,136	$65	$2,378,586
Revenues - Intercompany	—	—	—	69,676	69,676
Total revenues (1)	1,496,143	743,242	139,136	69,741	2,448,262
Less:
Segment Adjusted EBITDA Expense (2)	937,083	551,734	19,853	25,759	1,534,429
Transportation expenses	85,142	27,448	—	—	112,590
Other segment items (3)	—	—	2,325	—	2,325
Segment Adjusted EBITDA (4)	473,918	164,060	116,958	43,982	798,918

Total assets (5)	1,028,622	467,463	818,502	307,924	2,622,511
Capital expenditures (6)	301,591	109,315	—	—	410,906

Year Ended December 31, 2023

Revenues - Outside	$1,481,556	$883,334	$141,525	$42	$2,506,457
Revenues - Intercompany	—	—	—	65,572	65,572
Total revenues (1)	1,481,556	883,334	141,525	65,614	2,572,029
Less:
Segment Adjusted EBITDA Expense (2)	861,288	516,471	16,532	24,451	1,418,742
Transportation expenses	106,150	36,140	—	—	142,290
Other segment items (3)	—	—	3,485	—	3,485
Segment Adjusted EBITDA (4)	514,118	330,723	121,508	41,163	1,007,512

Total assets (5)	966,102	488,427	781,184	315,592	2,551,305
Capital expenditures (6)	257,885	116,217	—	400	374,502

Year Ended December 31, 2022

Revenues - Outside	$1,296,305	$928,087	$154,897	$56	$2,379,345
Revenues - Intercompany	—	—	—	60,624	60,624
Total revenues (1)	1,296,305	928,087	154,897	60,680	2,439,969
Less:
Segment Adjusted EBITDA Expense (2)	806,080	464,029	15,395	21,871	1,307,375
Transportation expenses	69,541	44,319	—	—	113,860
Other segment items (3)	—	(6,663)	(3,677)	—	(10,340)
Segment Adjusted EBITDA (4)	420,684	426,402	143,179	38,809	1,029,074

Total assets (5)	779,018	431,913	778,465	321,587	2,310,983
Capital expenditures (6)	158,624	76,603	—	38,276	273,503

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


· · Year Ended December 31, ·
· · 2024 · 2023 · 2022 ·
· · (in thousands) ·
Total segment revenues	$2,448,262	$2,572,029	$2,439,969
Other, Corporate and Elimination revenues - Outside	70,122	60,244	40,622
Other, Corporate and Elimination revenues - Intercompany	(69,676)	(65,572)	(60,624)
Total consolidated revenues	$2,448,708	$2,566,701	$2,419,967

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 such as certain litigation accruals. 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:

Appalachia Coal Operations – a settlement gain at our Tunnel Ridge mine during 2022

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 modified for certain items that we characterize as unrepresentative of our ongoing operations, such as the change in fair value of digital assets and certain litigation accruals. Segment Adjusted EBITDA is used as a financial measure by Mr. Craft, the Chairman, President and Chief Executive Officer of MGP, 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:


· · Year Ended December 31,
· 2024 · 2023 · 2022
· · (in thousands) ·
Segment Adjusted EBITDA – total segments	$798,918	$1,007,512	$1,029,074
Other, Corporate and Elimination profit (loss)	(2,464)	4,661	3,495
General and administrative	(82,224)	(79,096)	(80,425)
Depreciation, depletion and amortization	(285,446)	(267,982)	(276,670)
Asset Impairments	(31,130)	—	—
Interest expense, net	(28,007)	(26,697)	(35,296)
Change in fair value of digital assets	22,395	—	—
Litigation expense accrual	(15,250)	—	—
Noncontrolling interest	4,702	6,052	1,958
Income before income taxes	$381,494	$644,450	$642,136

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:


· · December 31, ·
· · 2024 · 2023 · 2022 ·
· · (in thousands) ·
Total segment assets	$2,622,511	$2,551,305	$2,310,983
Other, Corporate and Elimination total assets	293,219	237,121	417,038
Total consolidated assets	$2,915,730	$2,788,426	$2,728,021

(6)

Capital expenditures shown exclude $24.7 million, $110.9 million and $92.6 million paid for oil & gas acquisitions in 2024, 2023 and 2022, respectively. See Note 4 – Acquisitions for more information. The following is a reconciliation of our total segment capital expenditures to total consolidated capital expenditures:


· · Year Ended December 31, ·
· · 2024 · 2023 · 2022 ·
· · (in thousands) ·
Total segment capital expenditures	$410,906	$374,502	$273,503
Other, Corporate and Elimination capital expenditures	17,835	4,836	12,891
Total consolidated capital expenditures	$428,741	$379,338	$286,394

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.