Alliance Resource Partners, L.P.

What we do

• Diversified natural resource company generating operating and royalty income from:
  • Coal production and marketing to domestic utilities, industrial users, and international customers.
  • Royalty income from oil and gas mineral interests in key U.S. producing regions.
• Growth priorities include leasing and developing coal and oil & gas mineral interests and pursuing strategic energy and infrastructure opportunities.
• Investments in technology and energy infrastructure through subsidiaries and third-party ventures.

Corporate structure

• Delaware limited partnership managed by its sole general partner, MGP.
• Coal operations are managed by Alliance Coal and organized into two regions: Illinois Basin and Appalachia.
• Alliance Resource Properties holds coal mineral reserves/resources and leases or subleases most of these to the company’s mining complexes or third parties.
• Oil and gas mineral interests include mineral and royalty positions primarily in the Permian (Delaware & Midland), Anadarko (SCOOP/STACK), Williston (Bakken), and Appalachia basins. All oil and gas reserves are in the continental U.S.

Scale and footprint (as of December 31, 2025)

Coal mining footprint

• Seven underground mining complexes across the Illinois Basin and Appalachia.
• Mt. Vernon Transfer Terminal (Ohio River, Mt. Vernon, IN) with capacity up to 8.0 million tons/year.
• Illinois Basin operations: Gibson Complex, River View Complex, Hamilton Complex, Warrior Complex.
• Appalachia operations: Tunnel Ridge Complex (WV), Mettiki Complex (MD/WV), MC Mining/Excel Mine No. 5 (KY).

Employees

• Total full-time employees: 3,575
  • 2,895 in active coal mining operations
  • 236 at Matrix Design (Matrix Group)
  • 237 supporting other operating activities
  • 207 corporate employees

Coal mineral resources and reserves

• Coal mineral reserves: ~586.5 million tons
• Coal mineral resources: ~1,066 million tons
• Alliance Resource Properties controls approximately 509.6 million tons of coal mineral reserves and 972.5 million tons of resources that are leased/subleased or held for lease.

Coal production and sales (2025)

• Coal produced: 33.2 million tons
• Coal sold: 33.0 million tons
• Approximately 73% of coal sold were leased from Alliance Resource Properties
• Coal quality mix: ~18.7% low-sulfur, 51.8% medium-sulfur, 29.5% high-sulfur
• Transportation mix: 45.8% barge, 34.8% rail, 19.4% truck
• Domestic electric utilities purchased 89.2% of 2025 tons; export/brokered transactions accounted for 8.6%; remaining sales to resellers and industrial customers
• Export tonnage represented about 8.6% of total tons sold in 2025

Oil & gas mineral interests (net royalty acres)

• Approximately 70,000 net royalty acres (standardized to 1/8th royalty)
• About 4,000 net royalty acres owned through AllDale III equity
• Net royalty acres include developed and undeveloped positions across Permian, Anadarko, Williston, and Appalachia basins

Oil & gas production (year ended 2025; excludes AllDale III)

• Oil: 1,628 MBbls
• Natural gas: 6,674 MMcf
• Natural gas liquids (NGL): 908 MBbls
• Total BOE: 3,648 MBOE
• Production by basin: Permian ~3,034 MBOE; Anadarko ~415 MBOE; Williston ~174 MBOE; Other ~145 MBOE
• Average realized prices (2025): Oil $64.12/Bbl; Natural gas $2.22/Mcf; NGL $21.74/Bbl
• Oil represented approximately 75.2% of oil & gas revenues in 2025; overall 44.5% of production was oil-related

Oil & gas reserves (as of December 31, 2025)

• Proved reserves (excluding AllDale III): Oil 10,597 MBbl; Natural gas 66,056 MMcf; NGL 8,520 MBbl; Total 30,125 MBOE
• AllDale III contributed about 2,037 MBBOE of proved reserves
• Proved undeveloped reserves: 3,091 MBOE (including additions from acquisitions and extensions)

Growth investments and other holdings

• Infinitum: Investment increased to $82.5 million (as of 12/31/2025) including $14.9 million of Series F Preferred Stock
• Gavin Generation: Committed up to $25 million; $17.3 million funded by 12/31/2025. Gavin Generation holds an indirect interest in a joint venture owning and operating a coal-fired power plant.
• Matrix Group: Develops and markets technology products and services for mining and other industries; Matrix Design collaborates with Infinitum on high-efficiency motors and motor controllers.
• Bitiki: Crypto-mining operations with 3,702 active miners and 1,056 hosted machines as of 12/31/2025; held 592.01 bitcoin valued at $51.8 million.
• Other growth investments include NGP ET IV (energy transition investments).

Revenue, customers, and indebtedness

• Major customers: Louisville Gas and Electric Company (LG&E) and American Electric Power Company, Inc. each accounted for more than 10% of total revenue in 2025.
• Revenue mix indicators:
  • 89.2% of total coal tons sold to domestic electric utilities (2025)
  • 8.6% of coal tons sold were exported (2025)
  • 86.5% of total coal sales were under long-term contracts (expirations 2026–2030)
  • 44.5% of production was oil-related; 75.2% of oil & gas revenues were from oil production (2025)
• Long-term indebtedness: $463.5 million (as of December 31, 2025)

Surface, leases, and terminal capacity

• Substantially all coal mineral resources and the majority of coal mineral reserves are owned or leased by Alliance Resource Properties and leased/subleased to the company’s mining complexes or third parties.
• Mt. Vernon Transfer Terminal handles coal loading on the Ohio River with ground storage and terminal capacity.

Market position and risks

• Second-largest coal producer in the eastern United States.
• Markets include domestic utilities, industrial users, and international customers; competitors include other U.S. and international coal suppliers.
• Mineral interests and royalty streams provide contract-driven cash flows with relatively low operating exposure.
• The filing discusses regulatory, environmental, and climate-related risks affecting coal and oil & gas markets.

Quick snapshot (highlights)

• 3,575 total employees
• 33.0 million tons of coal sold (2025); 33.2 million tons produced

• 10% of 2025 revenue from LG&E and >10% from American Electric Power (each)

• 70,000 oil & gas net royalty acres; 4,000 in AllDale III
• 586.5 million tons coal mineral reserves; 1,066 million tons coal mineral resources
• 51,233 developed and undeveloped oil & gas net acres
• 2025 production including AllDale III: Oil 1,677 MBbls; Natural gas 7,097 MMcf; NGL 908 MBbls; total BOE 3,768 MBOE (additional reserves from AllDale III)

Notes

• Information reflects statuses reported as of December 31, 2025 in the Form 10-K.