Alliance Resource Partners, L.P. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues were $603.0 million for the quarter ended September 30, 2026, an increase of 5.5% year-over-year and 9.3% sequentially compared to the quarter ended June 30, 2026.
• Net income attributable to ARLP was $139.6 million for the quarter, up 46.8% year-over-year and 75.5% sequentially.
• Earnings per basic and diluted unit were $1.08 for the quarter, up 47.9% year-over-year and 77.0% sequentially.
• Adjusted EBITDA attributable to ARLP was $233.9 million for the quarter, an increase of 26.3% year-over-year and 26.4% sequentially.
• Distributable Cash Flow was $136.8 million for the quarter, with a Distribution Coverage Ratio of 1.76x.
• Total debt and finance leases were $679.9 million as of September 30, 2026.
• The Partnership's net leverage ratio was 0.78 times debt to trailing twelve months Adjusted EBITDA attributable to ARLP as of September 30, 2026.
• Total liquidity was $430.8 million, consisting of $84.8 million in cash and cash equivalents and $346.0 million available under revolving credit and accounts receivable securitization facilities.
• The Partnership held 673 bitcoins valued at $56.3 million as of September 30, 2026.
• Operating expenses were $339.2 million for the quarter, down 4.4% year-over-year.

Guidance and Future Outlook:

• Full-year 2026 total coal sales tons guidance is updated to 34.50 – 35.50 million short tons.
• Full-year 2026 Illinois Basin sales tons guidance is 26.50 – 27.00 million tons; Appalachia sales tons guidance is 8.00 – 8.50 million tons.
• Full-year 2026 total coal sales price per ton sold guidance is $54.25 – $54.75.
• Full-year 2026 Segment Adjusted EBITDA Expense per ton sold guidance is $37.50 – $38.50.
• Full-year 2026 Oil & Gas Royalties volumes guidance: 1.900 – 2.000 million barrels of oil, 10.250 – 10.750 million MCF of natural gas, and 1.100 – 1.200 million barrels of liquids.
• Full-year 2026 Coal Royalties guidance: 29.5 – 30.2 million royalty tons sold, $3.00 – $3.20 revenue per royalty ton, and $1.10 – $1.20 Segment Adjusted EBITDA Expense per royalty ton.
• Full-year 2026 Consolidated guidance includes Depreciation, depletion and amortization of $325 – $335 million; General and administrative of $100 – $105 million; Net interest expense of $53 – $55 million; Income tax expense of $35 – $40 million; and Total capital expenditures of $270 – $290 million.
• The Partnership has 31.7 million tons committed and priced for 2027.
• Management expects 2027 results to compare favorably to 2026 due to the full-year contribution of minerals acquired in 2026 and anticipated mineral investments.
• Management anticipates potential upside to 2027 sales volumes from additional export opportunities.

Business Segments and Product Lines:

• Coal Operations: Segment Adjusted EBITDA was $186.8 million for the quarter, up 18.6% year-over-year and 23.1% sequentially.
  • Illinois Basin tons sold were 7.033 million, up 6.4% year-over-year.
  • Appalachia tons sold were 2.315 million, up 10.7% year-over-year.
  • Total Coal Operations tons sold were 9.348 million, up 7.4% year-over-year.
  • Segment Adjusted EBITDA Expense per ton sold for Coal Operations was $35.64, down 13.1% year-over-year.
  • Coal sales price per ton sold was $53.93, down 8.3% year-over-year.
• Royalties:
  • Oil & Gas Royalties: Segment Adjusted EBITDA attributable to ARLP was a record $43.6 million, up 61.4% year-over-year and 16.8% sequentially.
    • BOE sold were 1.450 million, up 61.3% year-over-year.
    • Average sales price per BOE was $41.21, up 15.5% year-over-year.
  • Coal Royalties: Segment Adjusted EBITDA was $18.2 million, up 6.2% year-over-year.
    • Royalty tons sold were 8.350 million, up 18.4% year-over-year.
• The AllDale III & IV acquisition, completed on July 1, 2026, for approximately $206.2 million, added control of approximately 48,500 net royalty acres across the Permian, Anadarko, Bakken, and Haynesville basins.
• The Partnership added 4.2 million committed and priced tons through 2028 during the quarter.
• Export market commitments were 3.7 million tons for 2026 and 3.0 million tons for 2027.

Market and Competitive Landscape:

• Electricity load in served markets is growing, while permitting, interconnection, and supply chain constraints are slowing new generation capacity.
• Data center-driven demand is expected to extend the runway for the existing coal fleet.
• The Partnership is the second largest coal producer in the eastern United States.
• Market conditions remain dynamic, with management cautiously optimistic about additional export opportunities.

Risks and Challenges:

• Risks include decline in coal industry share of electricity generation due to environmental concerns, cost of other energy sources, and retirement of coal-fired power plants.
• Risks include changes in commodity prices, demand, availability, and global economic conditions.
• Risks include geopolitical events, conflicts, and disruption of maritime traffic.
• Risks include potential shut-ins of production by operators of oil & gas mineral interests due to low commodity prices or lack of downstream demand.
• Risks include operational interruptions due to geologic, permitting, labor, weather, or supply chain shortages.
• Risks include cybersecurity threats, including unauthorized access, ransomware, and data privacy breaches.
• Risks include changes in tax rules, regulations, and tariffs.
• Risks include difficulty in making accurate assumptions regarding post-mine reclamation, pension, and black lung benefit liabilities.

Management Commentary and Tone:

• Joseph W. Craft III, Chairman, President and CEO, described the quarter as "outstanding," citing strong shipping, the resumption of longwall production at Hamilton, and improved operations at River View and Tunnel Ridge.
• Management stated that capital investments are translating into a "lower-cost, more reliable platform."
• Management noted the AllDale III & IV acquisition meaningfully increases the Oil & Gas Royalties segment's contribution to consolidated cash flows.
• Management expressed confidence that fundamentals supporting coal demand continue to build.
• Management indicated that if crude oil prices remain elevated, the Oil & Gas Royalties segment could achieve another record quarter to finish the year.

Other Key Points:

• The Board of Directors declared a quarterly cash distribution of $0.60 per unit ($2.40 annualized), payable on November 13, 2026, to unitholders of record as of November 6, 2026.
• The Distribution Coverage Ratio for the quarter was 1.76x, an improvement of over 27% sequentially.
• ARLP announced qualified notice to brokers regarding the tax treatment of distributions to non-U.S. investors, treating 100% of distributions as effectively connected income subject to federal income tax withholding.
• The Partnership recognized a $16.5 million increase in the fair value of digital assets and a $6.3 million gain from the remeasurement of a previously held equity investment in AllDale III.
• The Partnership recognized a $7.3 million loss on derivative instruments acquired in the AllDale III & IV acquisition.
• As of September 30, 2026, the Partnership had outstanding derivative contracts for oil fixed price swaps covering 75,000 barrels in 2026 at a weighted average price of $71.08, 275,000 barrels in 2027 at $68.81, and 215,000 barrels in 2028 at $68.50.
• Total coal inventory was 0.9 million tons as of September 30, 2026.