Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 08, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Entity File Number | 0-26823 | |
Entity Registrant Name | ALLIANCE RESOURCE PARTNERS LP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 73-1564280 | |
Entity Address, Address Line One | 1717 South Boulder Avenue, Suite 400 | |
Entity Address, City or Town | Tulsa | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 74119 | |
City Area Code | 918 | |
Local Phone Number | 295-7600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common units | |
Trading Symbol | ARLP | |
Security Exchange Name | NASDAQ | |
Entity Common Units Outstanding | 127,195,219 | |
Entity Central Index Key | 0001086600 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 106,089 | $ 122,403 |
Trade receivables | 230,577 | 129,531 |
Other receivables | 431 | 680 |
Inventories, net | 109,676 | 60,302 |
Advance royalties | 3,458 | 4,958 |
Prepaid expenses and other assets | 15,853 | 21,354 |
Total current assets | 466,084 | 339,228 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Property, plant and equipment, at cost | 3,656,835 | 3,608,347 |
Less accumulated depreciation, depletion and amortization | (1,970,964) | (1,909,669) |
Total property, plant and equipment, net | 1,685,871 | 1,698,678 |
OTHER ASSETS: | ||
Advance royalties | 70,800 | 63,524 |
Equity method investments | 46,388 | 26,325 |
Equity securities | 32,639 | |
Goodwill | 4,373 | 4,373 |
Operating lease right-of-use assets | 14,731 | 14,158 |
Other long-term assets | 12,305 | 13,120 |
Total other assets | 181,236 | 121,500 |
TOTAL ASSETS | 2,333,191 | 2,159,406 |
CURRENT LIABILITIES: | ||
Accounts payable | 90,408 | 69,586 |
Accrued taxes other than income taxes | 13,972 | 17,787 |
Accrued payroll and related expenses | 38,796 | 36,805 |
Accrued interest | 5,000 | 5,000 |
Workers' compensation and pneumoconiosis benefits | 12,276 | 12,293 |
Current finance lease obligations | 486 | 840 |
Current operating lease obligations | 2,157 | 1,820 |
Other current liabilities | 18,511 | 17,375 |
Current maturities, long-term debt, net | 14,942 | 16,071 |
Total current liabilities | 196,548 | 177,577 |
LONG-TERM LIABILITIES: | ||
Long-term debt, excluding current maturities, net | 412,991 | 418,942 |
Pneumoconiosis benefits | 108,819 | 107,560 |
Accrued pension benefit | 24,130 | 25,590 |
Workers' compensation | 38,701 | 44,911 |
Asset retirement obligations | 124,180 | 123,517 |
Long-term finance lease obligations | 562 | 618 |
Long-term operating lease obligations | 12,657 | 12,366 |
Deferred income tax liabilities | 37,331 | 391 |
Other liabilities | 25,079 | 21,865 |
Total long-term liabilities | 784,450 | 755,760 |
Total liabilities | 980,998 | 933,337 |
COMMITMENTS AND CONTINGENCIES - (Note 3) | ||
ARLP Partners' Capital: | ||
Limited Partners - Common Unitholders 127,195,219 units outstanding | 1,403,733 | 1,279,183 |
Accumulated other comprehensive loss | (62,645) | (64,229) |
Total ARLP Partners' Capital | 1,341,088 | 1,214,954 |
Noncontrolling interest | 11,105 | 11,115 |
Total Partners' Capital | 1,352,193 | 1,226,069 |
TOTAL LIABILITIES AND PARTNERS' CAPITAL | $ 2,333,191 | $ 2,159,406 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Jun. 30, 2022 | Dec. 31, 2021 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common units outstanding | 127,195,219 | 127,195,219 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
SALES AND OPERATING REVENUES: | ||||
Revenues | $ 616,501 | $ 362,443 | $ 1,077,364 | $ 681,065 |
EXPENSES: | ||||
Outside coal purchases | 151 | 114 | 151 | 114 |
General and administrative | 22,457 | 17,492 | 41,053 | 32,996 |
Depreciation, depletion and amortization | 66,734 | 64,733 | 130,048 | 123,935 |
Total operating expenses | 441,229 | 307,436 | 814,257 | 589,730 |
INCOME FROM OPERATIONS | 175,272 | 55,007 | 263,107 | 91,335 |
Interest expense (net of interest capitalized for the three and six months ended June 30, 2022 and 2021 of $171, $105, $241 and $191, respectively) | (9,397) | (9,842) | (19,059) | (20,238) |
Interest income | 93 | 15 | 128 | 32 |
Equity method investment income | 1,585 | 341 | 2,468 | 403 |
Other income (expense) | 579 | (1,351) | 1,145 | (2,548) |
INCOME BEFORE INCOME TAXES | 168,132 | 44,170 | 247,789 | 68,984 |
INCOME TAX EXPENSE (BENEFIT) | 6,331 | 5 | 49,046 | (7) |
NET INCOME | 161,801 | 44,165 | 198,743 | 68,991 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | (323) | (130) | (613) | (208) |
NET INCOME ATTRIBUTABLE TO ARLP | $ 161,478 | $ 44,035 | $ 198,130 | $ 68,783 |
EARNINGS PER LIMITED PARTNER UNIT - BASIC (in dollars per unit) | $ 1.23 | $ 0.34 | $ 1.51 | $ 0.53 |
EARNINGS PER LIMITED PARTNER UNIT - DILUTED (in dollars per unit) | $ 1.23 | $ 0.34 | $ 1.51 | $ 0.53 |
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING - BASIC (in units) | 127,195,219 | 127,195,219 | 127,195,219 | 127,195,219 |
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING - DILUTED (in units) | 127,195,000 | 127,195,000 | 127,195,000 | 127,195,000 |
Product | ||||
EXPENSES: | ||||
Operating expenses (excluding depreciation, depletion and amortization) | $ 316,502 | $ 213,039 | $ 578,248 | $ 409,559 |
Coal sales | ||||
SALES AND OPERATING REVENUES: | ||||
Revenues | 531,807 | 325,974 | 920,167 | 613,461 |
Oil & gas royalties | ||||
SALES AND OPERATING REVENUES: | ||||
Revenues | 35,927 | 17,114 | 66,854 | 31,113 |
Transportation | ||||
SALES AND OPERATING REVENUES: | ||||
Revenues | 35,385 | 12,058 | 64,757 | 23,126 |
EXPENSES: | ||||
Operating expenses (excluding depreciation, depletion and amortization) | 35,385 | 12,058 | 64,757 | 23,126 |
Other revenues | ||||
SALES AND OPERATING REVENUES: | ||||
Revenues | $ 13,382 | $ 7,297 | $ 25,586 | $ 13,365 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||
Interest expense, interest capitalized | $ 171 | $ 105 | $ 241 | $ 191 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
NET INCOME | $ 161,801 | $ 44,165 | $ 198,743 | $ 68,991 |
OTHER COMPREHENSIVE INCOME: | ||||
OTHER COMPREHENSIVE INCOME | 794 | 2,231 | 1,584 | 4,462 |
COMPREHENSIVE INCOME | 162,595 | 46,396 | 200,327 | 73,453 |
Less: Comprehensive income attributable to noncontrolling interest | (323) | (130) | (613) | (208) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO ARLP | 162,272 | 46,266 | 199,714 | 73,245 |
Defined benefit pension plan | ||||
OTHER COMPREHENSIVE INCOME: | ||||
Amortization of prior service cost | 46 | 46 | 93 | 93 |
Amortization of net actuarial loss | 489 | 1,142 | 972 | 2,283 |
Total recognized in accumulated other comprehensive loss | 535 | 1,188 | 1,065 | 2,376 |
Pneumoconiosis benefits | ||||
OTHER COMPREHENSIVE INCOME: | ||||
Amortization of net actuarial loss | 259 | 1,043 | 519 | 2,086 |
Total recognized in accumulated other comprehensive loss | $ 259 | $ 1,043 | $ 519 | $ 2,086 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
CASH FLOWS FROM OPERATING ACTIVITIES | $ 235,317 | $ 158,216 | |
Property, plant and equipment: | |||
Capital expenditures | (121,982) | (55,626) | |
Increase in accounts payable and accrued liabilities | 8,951 | 1,547 | |
Proceeds from sale of property, plant and equipment | 3,373 | 2,838 | |
Contributions to equity method investments | (20,110) | ||
Purchase of equity security | (32,639) | ||
Distributions received from investments in excess of cumulative earnings | 47 | 994 | |
Other | (982) | ||
Net cash used in investing activities | (163,342) | (50,247) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under securitization facility | 27,500 | 35,000 | |
Payments under securitization facility | (27,500) | (52,800) | |
Payments on equipment financings | (8,696) | (8,535) | |
Borrowings under revolving credit facilities | 15,000 | ||
Payments under revolving credit facilities | (102,500) | ||
Borrowings from line of credit | 1,830 | ||
Payments on finance lease obligations | (410) | (375) | |
Payment of debt issuance costs | (6) | ||
Distributions paid to Partners | (78,560) | (13,045) | $ (52,158) |
Other | (623) | (363) | |
Net cash used in financing activities | (88,289) | (125,794) | |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (16,314) | (17,825) | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 122,403 | 55,574 | 55,574 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 106,089 | 37,749 | $ 122,403 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Cash paid for interest | 17,506 | 18,817 | |
Cash paid for income taxes | 10,964 | 11 | |
SUPPLEMENTAL NON-CASH ACTIVITY: | |||
Accounts payable for purchase of property, plant and equipment | 17,276 | $ 7,278 | |
Right-of-use assets acquired by operating lease | $ 99 |
ORGANIZATION AND PRESENTATION
ORGANIZATION AND PRESENTATION | 6 Months Ended |
Jun. 30, 2022 | |
ORGANIZATION AND PRESENTATION | |
ORGANIZATION AND PRESENTATION | 1. ORGANIZATION AND PRESENTATION Significant Relationships Referenced in Notes to Condensed Consolidated Financial Statements ● References to "we," "us," "our" or "ARLP Partnership" mean the business and operations of Alliance Resource Partners, L.P., the parent company, as well as its consolidated subsidiaries. ● References to "ARLP" mean Alliance Resource Partners, L.P., individually as the parent company, and not on a consolidated basis. ● References to "MGP" mean Alliance Resource Management GP, LLC, ARLP's general partner. ● References to "Mr. Craft" mean Joseph W. Craft III, the Chairman, President and Chief Executive Officer of MGP. ● References to "Intermediate Partnership" mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P. ● References to "Alliance Coal" mean Alliance Coal, LLC, the holding company for our coal mining operations. ● References to "Alliance Minerals" mean Alliance Minerals, LLC, the holding company for our oil and gas mineral interests. ● References to "Alliance Resource Properties" mean Alliance Resource Properties, LLC, the land holding company for certain of our coal mineral interests, including the subsidiaries of Alliance Resource Properties, LLC. Organization ARLP is a Delaware limited partnership listed on the NASDAQ Global Select Market under the ticker symbol "ARLP." ARLP was formed in May 1999 and completed its initial public offering on August 19, 1999 when it acquired substantially all of the coal production and marketing assets of Alliance Resource Holdings, Inc., a Delaware corporation, and its subsidiaries. We are managed by our general partner, MGP, a Delaware limited liability company which holds a non-economic general partner interest in ARLP. Change in Tax Status On March 15, 2022, Alliance Minerals changed its federal income tax status from a pass-through entity to a taxable entity via a "check the box" election (the "Tax Election"), which became effective January 1, 2022. This election for Alliance Minerals is anticipated to reduce the total income tax burden on our oil & gas royalties, as Alliance Minerals will pay entity-level taxes at corporate tax rates that are well below individual tax rates that would otherwise be paid by our unitholders. For more information on the Tax Election please see Note 7 – Income Taxes. Francis Investment On April 5, 2022, we committed to invest up to $50 million in Francis Renewable Energy, LLC ("Francis") through the purchase of preferred equity interests. Francis currently is active in the installation, management and operation of metered-for-fee, public-access electric vehicle ("EV") charging stations. Francis also develops and constructs EV charging stations for third-party customers. Our investment in Francis furthers our business strategy to develop strategic relationships and invest in attractive opportunities in the fast-growing energy infrastructure transition. For more information on this investment please see Note 8 – Variable Interest Entities. Infinitum Investment On April 29, 2022, we purchased $32.6 million of Series D Preferred Stock from Infinitum Electric, Inc. ("Infinitum"), a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators which have the potential to result in motors that are smaller, lighter, quieter, more efficient and capable of operating at a fraction of the carbon footprint of conventional electric motors. The preferred stock provides for non-cumulative dividends when and if declared by Infinitum’s board of directors. Each share is convertible, at any time, at our option, into shares of common stock of Infinitum. Our investment in Infinitum furthers our business strategy to develop strategic relationships and invest in attractive opportunities in the fast-growing energy infrastructure transition. For more information on this investment please see Note 9 – Investments. NGP ETP IV Investment On June 2, 2022, we committed to purchase $25.0 million of limited partner interests in NGP ETP IV, L.P. ("NGP ETP IV"), a Basis of Presentation The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of June 30, 2022 and December 31, 2021, the results of our operations and comprehensive income for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021. All intercompany transactions and accounts have been eliminated. These condensed consolidated financial statements and notes are prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting and do not include all the information normally included with financial statements prepared in accordance with generally accepted accounting principles ("GAAP") of the United States. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021. These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of the results for the periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2022. Use of Estimates The preparation of the ARLP Partnership's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in our condensed consolidated financial statements. Actual results could differ from those estimates. Income Taxes We are not a taxable entity for federal or state income tax purposes; the tax effect of our activities accrues to our unitholders. Although publicly traded partnerships as a general rule are taxed as corporations, we qualify for an exemption because at least 90% of our income consists of qualifying income, as defined in Section 7704(c) of the Internal Revenue Code. Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax basis and financial reporting basis of assets and liabilities and the taxable income allocation requirements under our partnership agreement. Individual unitholders have different investment bases depending upon the timing and price of acquisition of their partnership units. Furthermore, each unitholder's tax accounting, which is partially dependent upon the unitholder's tax position, differs from the accounting followed in our consolidated financial statements. Accordingly, the aggregate difference in the basis of our net assets for financial and tax reporting purposes cannot be readily determined because information regarding each unitholder's tax attributes in our partnership is not available to us. Our subsidiary Alliance Minerals within our Oil & Gas Royalties segment and certain other subsidiaries within our Other, Corporate and Elimination category are subject to federal and state income taxes. We use the liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities and (ii) operating losses and tax credit carryforwards. Deferred income tax assets and liabilities are based on enacted rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax status or a change in tax rates on deferred tax assets and liabilities is recognized in the period the change in status is elected or rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2022 | |
NEW ACCOUNTING STANDARDS | |
NEW ACCOUNTING STANDARDS | 2. NEW ACCOUNTING STANDARDS New Accounting Standards Issued and Adopted In November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance ("ASU 2021-10"). ASU 2021-10 increases the transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. We adopted ASU 2021-10 on January 1, 2022. The adoption of ASU 2021-10 did not have a material impact on our condensed consolidated financial statements. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
CONTINGENCIES | |
CONTINGENCIES | 3. CONTINGENCIES We are party to litigation that has been initiated against certain of our subsidiaries in which the plaintiffs allege violations of the Fair Labor Standards Act and Kentucky Wage and Hour Act due to an alleged failure to compensate for time "donning" and "doffing" equipment and to account for certain bonuses in the calculation of overtime rates and pay. The plaintiffs seek class or collective action certification. Because the litigation of these matters is in the early stages, we cannot reasonably estimate a range of potential exposure at this time. We believe the plaintiffs’ claims are without merit and our ultimate exposure, if any, will not be material to our results of operations or financial position and we intend to defend the litigation vigorously. However, if our current belief that the claims are without merit is not upheld, it is reasonably possible that the ultimate resolution of these matters could result in a potential loss that may be material to our results of operations. We also have various other lawsuits, claims and regulatory proceedings incidental to our business that are pending against the ARLP Partnership. We record an accrual for a potential loss related to these matters when, in management's opinion, such loss is probable and reasonably estimable. Based on known facts and circumstances, we believe the ultimate outcome of these outstanding lawsuits, claims and regulatory proceedings will not have a material adverse effect on our financial condition, results of operations or liquidity. However, if the results of these matters are different from management's current expectations and in amounts greater than our accruals, such matters could have a material adverse effect on our business and operations. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2022 | |
INVENTORIES | |
INVENTORIES | 4. INVENTORIES Inventories consist of the following: June 30, December 31, 2022 2021 (in thousands) Coal $ 63,933 $ 24,845 Supplies (net of reserve for obsolescence of $5,620 and $5,554, respectively) 45,743 35,457 Total inventories, net $ 109,676 $ 60,302 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 5. FAIR VALUE MEASUREMENTS The following table summarizes our fair value measurements within the hierarchy not included elsewhere in these notes: June 30, 2022 December 31, 2021 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Long-term debt $ — $ 428,645 $ — $ — $ 457,758 $ — Total $ — $ 428,645 $ — $ — $ 457,758 $ — The carrying amounts for cash equivalents, accounts receivable, accounts payable, accrued and other liabilities approximate fair value due to the short maturity of those instruments. The estimated fair value of our long-term debt, including current maturities, is based on interest rates that we believe are currently available to us in active markets for issuance of debt with similar terms and remaining maturities (See Note 6 – Long-Term Debt). The fair value of debt, which is based upon these interest rates, is classified as a Level 2 measurement under the fair value hierarchy. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2022 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 6. LONG-TERM DEBT Long-term debt consists of the following: Unamortized Discount and Principal Debt Issuance Costs June 30, December 31, June 30, December 31, 2022 2021 2022 2021 (in thousands) Revolving credit facility $ — $ — $ (3,861) $ (5,019) Senior notes 400,000 400,000 (2,592) (3,048) Securitization facility — — — — May 2019 equipment financing — 1,503 — — November 2019 equipment financing 26,587 31,972 — — June 2020 equipment financing 7,799 9,605 — — 434,386 443,080 (6,453) (8,067) Less current maturities (14,942) (16,071) — — Total long-term debt $ 419,444 $ 427,009 $ (6,453) $ (8,067) Credit Facility. The Credit Agreement is guaranteed by certain of our Intermediate Partnership's material direct and indirect subsidiaries (the "Restricted Subsidiaries") and is secured by substantially all the assets of the Restricted Subsidiaries. The Credit Agreement is also guaranteed by Alliance Minerals but the oil and gas mineral assets of Alliance Minerals and its direct and indirect subsidiaries (collectively with Alliance Minerals, the "Unrestricted Subsidiaries") are not collateral under the Credit Agreement. Borrowings under the Revolving Credit Facility bear interest, at our option, at either (i) the Base Rate at the greater of three benchmarks or (ii) a Eurodollar Rate, plus margins for (i) or (ii), as applicable, that fluctuate depending upon the ratio of Consolidated Debt to Consolidated Cash Flow (each as defined in the Credit Agreement). The Eurodollar Rate, with applicable margin, under the Revolving Credit Facility was 4.14% as of June 30, 2022. On June 30, 2022, we had $44.1 million of letters of credit outstanding with $415.4 million available for borrowing under the Revolving Credit Facility. We incur an annual commitment fee of 0.35% on the undrawn portion of the Revolving Credit Facility. We utilize the Revolving Credit Facility, as appropriate, for working capital requirements, capital expenditures and investments, scheduled debt payments and distribution payments. The Credit Agreement contains various restrictions affecting the Intermediate Partnership and its Restricted Subsidiaries including, among other things, restrictions on incurrence of additional indebtedness and liens, sale of assets, investments, mergers and consolidations and transactions with affiliates, including transactions with Unrestricted Subsidiaries. In each case, these restrictions are subject to various exceptions. In addition, the payment of cash distributions is restricted if such payment would result in a fixed charge coverage ratio of less than 1.0 to 1.0 (as defined in the Credit Agreement) for the four most recently ended fiscal quarters. The Credit Agreement requires the Intermediate Partnership to maintain (a) a debt to cash flow ratio of not more than 2.5 to 1.0, (b) a cash flow to interest expense ratio of not less than 3.0 to 1.0 and (c) a first lien debt to cash flow ratio of not more than 1.5 to 1.0, in each case, during the four most recently ended fiscal quarters. The debt to cash flow ratio, cash flow to interest expense ratio and first lien debt to cash flow ratio were 0.74 to 1.0, 15.52 to 1.0 and 0.07 to 1.0, respectively, for the trailing twelve months ended June 30, 2022. We remained in compliance with the covenants of the Credit Agreement as of June 30, 2022 and anticipate remaining in compliance with the covenants. Senior Notes. On April 24, 2017, the Intermediate Partnership and Alliance Resource Finance Corporation (as co-issuer), a wholly owned subsidiary of the Intermediate Partnership ("Alliance Finance"), issued an aggregate principal amount of $400.0 million of senior unsecured notes due 2025 ("Senior Notes") in a private placement to qualified institutional buyers. The Senior Notes have a term of eight years , maturing on May 1, 2025 (the "Term") and accrue interest at an annual rate of 7.5% . Interest is payable semi-annually in arrears on each May 1 and November 1. The indenture governing the Senior Notes contains customary terms, events of default and covenants relating to, among other things, the incurrence of debt, the payment of distributions or similar restricted payments, undertaking transactions with affiliates and limitations on asset sales. The issuers of the Senior Notes may redeem all or a part of the notes at any time at redemption prices set forth in the indenture governing the Senior Notes. Accounts Receivable Securitization. May 2019 Equipment Financing . On May 17, 2019, the Intermediate Partnership entered into an equipment financing arrangement accounted for as debt, wherein the Intermediate Partnership received $10.0 million in exchange for conveying its interest in certain equipment owned indirectly by the Intermediate Partnership and entering into a master lease agreement for that equipment (the "May 2019 Equipment Financing"). The May 2019 Equipment Financing contained customary terms and events of default and provided for thirty-six monthly payments with an implicit interest rate of 6.25% . The May 2019 Equipment Financing matured on May 1, 2022 and the equipment reverted to the Intermediate Partnership. November 2019 Equipment Financing. On November 6, 2019, the Intermediate Partnership entered into an equipment financing arrangement accounted for as debt, wherein the Intermediate Partnership received $53.1 million in exchange for conveying its interest in certain equipment owned indirectly by the Intermediate Partnership and entering into a master lease agreement for that equipment (the "November 2019 Equipment Financing"). The November 2019 Equipment Financing contains customary terms and events of default and an implicit interest rate of 4.75% , providing for a four-year term with forty-seven monthly payments of $1.0 million and a balloon payment of $11.6 million upon maturity on November 6, 2023. Upon maturity, the equipment will revert to the Intermediate Partnership. June 2020 Equipment Financing. customary terms and events of default and provides for forty-eight monthly payments with an implicit interest rate of 6.1% , maturing on June 5, 2024. Upon maturity, the equipment will revert to the Intermediate Partnership. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
INCOME TAXES | |
INCOME TAXES | 7. INCOME TAXES Components of income tax expense (benefit) are as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Current: Federal $ 6,175 $ — $ 11,209 $ (1) State 445 — 831 — 6,620 — 12,040 (1) Deferred: Federal (255) 5 34,665 (6) State (34) — 2,341 — (289) 5 37,006 (6) Income tax expense (benefit) $ 6,331 $ 5 $ 49,046 $ (7) Alliance Minerals' Tax Election resulted in the recognition of an initial deferred tax liability of $37.3 million and a corresponding increase to income tax expense for the six months ended June 30, 2022. This increase in income tax expense reduced net income by $37.3 million, or approximately $0.29 per basic and diluted limited partner unit, for the six months ended June 30, 2022. Recognition of the initial deferred tax liability and expense is primarily the result of the $177.0 million non-cash acquisition gain recognized in 2019 related to the acquisition of the remaining interests in AllDale Minerals LP ("AllDale I") and AllDale Minerals II, LP ("AllDale II", and collectively with AllDale I, "AllDale I & II") (the “Acquisition Gain”). The Acquisition Gain was recognized to step up to fair value the financial reporting basis of the interests we already owned at the time of acquisition. The tax basis of the underlying properties of AllDale I & II did not include the Acquisition Gain. Reconciliations of income taxes at the U.S. federal statutory tax rate to income taxes at our effective tax rate are as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Income taxes at statutory rate $ 30,738 $ 9,276 $ 47,466 $ 14,487 Less: Income taxes at statutory rate on Partnership income not subject to income taxes (25,018) (9,141) (37,105) (14,174) Increase (decrease) resulting from: State taxes, net of federal income tax 457 34 818 72 Change in valuation allowance of deferred tax assets 11 (142) 1 (305) Deferred taxes related to tax election — — 37,253 — Other 143 (22) 613 (87) Income tax expense (benefit) $ 6,331 $ 5 $ 49,046 $ (7) The effective income tax rate for our income tax expense for the three months ended June 30, 2022 is less than the federal statutory rate, primarily due to the portion of income not subject to income taxes, partially offset by the effect of the Tax Election previously discussed. The effective income tax rate for our income tax expense for the six months ended June 30, 2022 is greater than the federal statutory rate, primarily due to the effect of the Tax Election, partially offset by the portion of income not subject to income taxes. The effective income tax rate for our income tax expense (benefit) for the three and six months ended June 30, 2021 is less than the federal statutory rate, primarily due to the portion of income not subject to income taxes. Significant components of deferred tax liabilities and deferred tax assets are as follows: June 30, December 31, 2022 2021 (in thousands) Deferred tax liabilities: Property, plant and equipment $ (38,710) $ (2,169) Total deferred tax liabilities (38,710) (2,169) Deferred tax assets: Federal loss carryovers and credits 933 1,328 Other 764 808 Total deferred tax assets 1,697 2,136 Less valuation allowance (318) (317) Net deferred tax assets 1,379 1,819 Overall net deferred tax liabilities $ (37,331) $ (350) The change in deferred tax liabilities for property, plant and equipment is primarily as a result of the Alliance Minerals’ Tax Election and associated impact of the Acquisition Gain discussed above. Federal loss carryovers and credits are primarily due to net operating losses and research and development credits associated with the operations of other subsidiaries that are taxable for federal income tax purposes. The valuation allowance as of June 30, 2022 and 2021 serves to reduce the available deferred tax assets to amounts that will, more likely than not, be realized. We considered all available positive and negative evidence, which incorporates available tax planning strategies and our estimate of future reversals of existing temporary differences, and have determined that a portion of our deferred tax assets relating to state losses and credits may not be realized. Our 2018 through 2021 tax years remain open to examination by tax authorities. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2022 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 8. VARIABLE INTEREST ENTITIES Cavalier Minerals On November 10, 2014, our subsidiary, Alliance Minerals, and Bluegrass Minerals Management, LLC ("Bluegrass Minerals") entered into a limited liability company agreement (the "Cavalier Agreement") to create Cavalier Minerals JV, LLC ("Cavalier Minerals"), which was formed to indirectly acquire oil & gas mineral interests through its ownership in AllDale I & II. Alliance Minerals owns a 96% member interest in Cavalier Minerals, and Bluegrass Minerals owns a 4% member interest in Cavalier Minerals and a profits interest which entitles it to receive distributions equal to 25% of all distributions (including in liquidation) after all members have recovered their investment. Distributions with respect to Bluegrass Minerals' profits interest will be offset by all distributions received by Bluegrass Minerals from the former general partners of AllDale I & II. To date, there has been no profits interest distribution. We hold the managing member interest in Cavalier Minerals. Total contributions to and cumulative distributions from Cavalier Minerals are as follows: Alliance Bluegrass Minerals Minerals (in thousands) Contributions $ 143,112 $ 5,963 Distributions 124,945 5,205 We have concluded that Cavalier Minerals is a variable interest entity ("VIE") which we consolidate as the primary beneficiary because we are the managing member and a substantial equity owner in Cavalier Minerals. Bluegrass Minerals' equity ownership of Cavalier Minerals is accounted for as noncontrolling ownership interest in our condensed consolidated balance sheets. In addition, earnings attributable to Bluegrass Minerals are recognized as noncontrolling interest in our condensed consolidated statements of income. AllDale III In February 2017, Alliance Minerals committed to directly invest $30.0 million in AllDale Minerals III, LP ("AllDale III") which was created for similar investment purposes as AllDale I & II. Alliance Minerals completed funding of this commitment in 2018. The AllDale III Partnership Agreement includes a 25% profits interest for the general partner, subject to a return hurdle equal to the greater of 125% of cumulative capital contributions and a 10% internal rate of return, and following an 80/20 "catch-up" provision for the general partner. Since AllDale III is structured as a limited partnership with the limited partners (i) not having the ability to remove the general partner and (ii) not participating significantly in the operational decisions, we concluded that AllDale III is a VIE. Francis On April 5, 2022, we committed to invest up to $50 million in Francis through the purchase of preferred equity interests. We funded the first $20 million on April 5, 2022, in the form of a convertible note with a maturity date of April 1, 2023. Our convertible note represents a 15.4% ownership interest in Francis. The note converts into preferred equity interests in Francis at maturity, or any time prior at our option. We have determined the note more closely represents equity as opposed to debt. Therefore, we will account for the convertible note as an equity contribution even though we will not participate in Francis’ earnings or losses and will not be eligible to receive distributions until the note converts. We have options to acquire the remaining preferred equity interests as part of our investment. We have concluded that Francis is a VIE as the management structure is similar to a limited partnership with the non-managing members (i) not having the ability to remove the managing member and (ii) not participating significantly in the operational decisions. We are not the primary beneficiary of Francis as we do not have the power to direct the activities that most significantly impact Francis's economic performance. We account for our ownership interest in the income or loss of Francis as an equity method investment. We record equity income or loss based on Francis’ distribution structure. See Note 9 – Investments for more information. NGP ETP IV On June 2, 2022, we committed to purchase $25.0 million of limited partner interests in NGP ETP IV, a private equity fund sponsored by NGP and focused on investments that are part of the global transition toward a lower carbon economy. We funded $0.1 million on June 21, 2022. Our final ownership percentage in NGP ETP IV is not yet known. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2022 | |
INVESTMENTS | |
INVESTMENTS | 9. INVESTMENT S AllDale III As discussed in Note 8 – Variable Interest Entities, we account for our ownership interest in the income or loss of AllDale III as an equity method investment. The changes in our equity method investment in AllDale III for each of the periods presented were as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Beginning balance $ 26,194 $ 26,907 $ 26,325 $ 27,268 Equity method investment income 1,585 341 2,468 403 Distributions received (1,501) (974) (2,515) (1,397) Ending balance $ 26,278 $ 26,274 $ 26,278 $ 26,274 Francis As discussed in Note 8 – Variable Interest Entities, we accounted for our ownership interest in the income or loss of Francis as an equity method investment. The changes in our equity method investment in Francis for three months ended June 30, 2022 were as follows: Three Months Ended June 30, 2022 (in thousands) Beginning balance $ — Contributions 20,000 Ending balance $ 20,000 NGP ETP IV As discussed in Note 8 – Variable Interest Entities, we account for our ownership interest in the income or loss of NGP ETP IV as an equity method investment. The changes in our equity method investment in NGP ETP IV for three months ended June 30, 2022 were as follows: Three Months Ended June 30, 2022 (in thousands) Beginning balance $ — Contributions 110 Ending balance $ 110 Infinitum On April 29, 2022, we purchased $32.6 million of Series D Preferred Stock from Infinitum, a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators. The preferred stock provides for non-cumulative dividends when and if declared by Infinitum’s board of directors. Each share is convertible, at any time, at our option, into shares of common stock of Infinitum. We account for our ownership interest in Infinitum as an equity investment without a readily determinable fair value. It is not practicable to estimate the fair value of our investment in Infinitum because of the lack of a quoted market price for our ownership interests. Therefore, we use a measurement alternative other than fair value to account for our investment. There were no changes in our investment in Infinitum for three months ended June 30, 2022. |
PARTNERS' CAPITAL
PARTNERS' CAPITAL | 6 Months Ended |
Jun. 30, 2022 | |
PARTNERS' CAPITAL | |
PARTNERS' CAPITAL | 10. PARTNERS' CAPITAL Distributions Distributions paid or declared during 2021 and 2022 were as follows: Payment Date Per Unit Cash Distribution Total Cash Distribution (in thousands) May 14, 2021 $ 0.1000 $ 13,045 August 13, 2021 0.1000 13,041 November 12, 2021 0.2000 26,072 Total $ 0.4000 $ 52,158 February 14, 2022 $ 0.2500 $ 32,750 May 13, 2022 0.3500 45,810 August 12, 2022 (1) 0.4000 — Total $ 1.0000 $ 78,560 (1) On July 26, 2022, we declared this quarterly distribution payable on August 12, 2022 to all unitholders of record as of August 5, 2022. Unit Repurchase Program In May 2018, the MGP board of directors approved the establishment of a unit repurchase program authorizing us to repurchase and retire up to $100 million of ARLP common units. 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. No unit repurchases were made during the six months ended June 30, 2022. Since inception of the unit repurchase program, we have repurchased and retired 5,460,639 units at an average unit price of $17.12 for an aggregate purchase price of $93.5 million. Change in Partners' Capital The following tables present the quarterly change in Partners' Capital for the six months ended June 30, 2022 and 2021: Accumulated Number of Limited Other Limited Partner Partners' Comprehensive Noncontrolling Total Partners' Units Capital Income (Loss) Interest Capital (in thousands, except unit data) Balance at January 1, 2022 127,195,219 $ 1,279,183 $ (64,229) $ 11,115 $ 1,226,069 Comprehensive income: Net income — 36,652 — 290 36,942 Actuarially determined long-term liability adjustments — — 790 — 790 Total comprehensive income 37,732 Common unit-based compensation — 2,640 — — 2,640 Distributions on deferred common unit-based compensation — (950) — — (950) Distributions from consolidated company to noncontrolling interest — — — (298) (298) Distributions to Partners — (31,800) — — (31,800) Balance at March 31, 2022 127,195,219 1,285,725 (63,439) 11,107 1,233,393 Comprehensive income: Net income — 161,478 — 323 161,801 Actuarially determined long-term liability adjustments — — 794 — 794 Total comprehensive income 162,595 Common unit-based compensation — 2,340 — — 2,340 Distributions on deferred common unit-based compensation — (1,292) — — (1,292) Distributions from consolidated company to noncontrolling interest — — — (325) (325) Distributions to Partners — (44,518) — — (44,518) Balance at June 30, 2022 127,195,219 $ 1,403,733 $ (62,645) $ 11,105 $ 1,352,193 Accumulated Number of Limited Other Limited Partner Partners' Comprehensive Noncontrolling Total Partners' Units Capital Income (Loss) Interest Capital (in thousands, except unit data) Balance at January 1, 2021 127,195,219 $ 1,148,565 $ (87,674) $ 11,376 $ 1,072,267 Comprehensive income: Net income — 24,748 — 78 24,826 Actuarially determined long-term liability adjustments — — 2,231 — 2,231 Total comprehensive income 27,057 Common unit-based compensation — 723 — — 723 Distributions from consolidated company to noncontrolling interest — — — (141) (141) Balance at March 31, 2021 127,195,219 1,174,036 (85,443) 11,313 1,099,906 Comprehensive income: Net income — 44,035 — 130 44,165 Actuarially determined long-term liability adjustments — — 2,231 — 2,231 Total comprehensive loss 46,396 Common unit-based compensation — 1,485 — — 1,485 Distributions on deferred common unit-based compensation — (324) — — (324) Distributions from consolidated company to noncontrolling interest — — — (222) (222) Distributions to Partners — (12,721) — — (12,721) Balance at June 30, 2021 127,195,219 $ 1,206,511 $ (83,212) $ 11,221 $ 1,134,520 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2022 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 11. REVENUE FROM CONTRACTS WITH CUSTOMERS The following table illustrates the disaggregation of our revenues by type, including a reconciliation to our segment presentation as presented in Note 16 – Segment Information. Coal Operations Royalties Other, Illinois Corporate and Basin Appalachia Oil & Gas Coal Elimination Consolidated (in thousands) Three Months Ended June 30, 2022 Coal sales $ 290,389 $ 241,418 $ — $ — $ — $ 531,807 Oil & gas royalties — — 35,927 — — 35,927 Coal royalties — — — 14,525 (14,525) — Transportation revenues 21,449 13,936 — — — 35,385 Other revenues 1,659 328 652 — 10,743 13,382 Total revenues $ 313,497 $ 255,682 $ 36,579 $ 14,525 $ (3,782) $ 616,501 Three Months Ended June 30, 2021 Coal sales $ 210,157 $ 115,817 $ — $ — $ — $ 325,974 Oil & gas royalties — — 17,114 — — 17,114 Coal royalties — — — 11,653 (11,653) — Transportation revenues 7,434 4,624 — — — 12,058 Other revenues 642 282 473 — 5,900 7,297 Total revenues $ 218,233 $ 120,723 $ 17,587 $ 11,653 $ (5,753) $ 362,443 Six Months Ended June 30, 2022 Coal sales $ 544,294 $ 375,873 $ — $ — $ — $ 920,167 Oil & gas royalties — — 66,854 — — 66,854 Coal royalties — — — 29,692 (29,692) — Transportation revenues 40,340 24,417 — — — 64,757 Other revenues 3,559 691 686 — 20,650 25,586 Total revenues $ 588,193 $ 400,981 $ 67,540 $ 29,692 $ (9,042) $ 1,077,364 Six Months Ended June 30, 2021 Coal sales $ 392,798 $ 220,663 $ — $ — $ — $ 613,461 Oil & gas royalties — — 31,113 — — 31,113 Coal royalties — — — 22,954 (22,954) — Transportation revenues 15,114 8,012 — — — 23,126 Other revenues 1,255 667 494 — 10,949 13,365 Total revenues $ 409,167 $ 229,342 $ 31,607 $ 22,954 $ (12,005) $ 681,065 The following table illustrates the amount of our transaction price for all current coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied as of June 30, 2022 and disaggregated by segment and contract duration. 2025 and 2022 2023 2024 Thereafter Total (in thousands) Illinois Basin Coal Operations coal revenues $ 650,837 $ 729,307 $ 361,381 $ 290,746 $ 2,032,271 Appalachia Coal Operations coal revenues 381,828 335,595 236,536 40,701 994,660 Total coal revenues (1) $ 1,032,665 $ 1,064,902 $ 597,917 $ 331,447 $ 3,026,931 (1) Coal revenues generally consists of consolidated revenues excluding our Oil & Gas Royalties segment as well as intercompany revenues from our Coal Royalties segment . |
EARNINGS PER LIMITED PARTNER UN
EARNINGS PER LIMITED PARTNER UNIT | 6 Months Ended |
Jun. 30, 2022 | |
EARNINGS PER LIMITED PARTNER UNIT | |
EARNINGS PER LIMITED PARTNER UNIT | 12. EARNINGS PER LIMITED PARTNER UNIT We utilize the two-class method in calculating basic and diluted earnings per limited partner unit ("EPU"). Net income attributable to ARLP is allocated to limited partners and participating securities under deferred compensation plans, which include rights to nonforfeitable distributions or distribution equivalents. Net losses attributable to ARLP are allocated to limited partners but not to participating securities. Our participating securities are outstanding restricted unit awards under our Long-Term Incentive Plan ("LTIP") and phantom units in notional accounts under our Supplemental Executive Retirement Plan ("SERP") and the MGP Amended and Restated Deferred Compensation Plan for Directors ("Directors' Deferred Compensation Plan"). The following is a reconciliation of net income attributable to ARLP used for calculating basic and diluted earnings per unit and the weighted-average units used in computing EPU for the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands, except per unit data) Net income attributable to ARLP $ 161,478 $ 44,035 $ 198,130 $ 68,783 Less: Distributions to participating securities (1,720) (401) (3,272) (619) Undistributed earnings attributable to participating securities (3,645) (825) (3,245) (934) Net income attributable to ARLP available to limited partners $ 156,113 $ 42,809 $ 191,613 $ 67,230 Weighted-average limited partner units outstanding – basic and diluted 127,195 127,195 127,195 127,195 Earnings per limited partner unit - basic and diluted (1) $ 1.23 $ 0.34 $ 1.51 $ 0.53 (1) Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive. The combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 3,529 and 3,289 for the three and six months ended June 30, 2022, respectively, and 1,525 and 1,397 for the three and six months ended June 30, 2021 , respectively, were considered anti-dilutive under the treasury stock method . |
WORKERS' COMPENSATION AND PNEUM
WORKERS' COMPENSATION AND PNEUMOCONIOSIS | 6 Months Ended |
Jun. 30, 2022 | |
WORKERS' COMPENSATION AND PNEUMOCONIOSIS | |
WORKERS' COMPENSATION AND PNEUMOCONIOSIS | 13. WORKERS' COMPENSATION AND PNEUMOCONIOSIS The changes in the workers' compensation liability, including current and long-term liability balances, for each of the periods presented were as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Beginning balance $ 53,206 $ 54,233 $ 53,448 $ 54,739 Accruals increase 2,271 1,565 4,546 3,237 Payments (3,278) (2,565) (6,082) (4,975) Interest accretion 287 231 574 463 Valuation gain (1) (5,265) (1,405) (5,265) (1,405) Ending balance $ 47,221 $ 52,059 $ 47,221 $ 52,059 (1) Our estimate of the liability for the present value of current workers′ compensation benefits is based on our actuarial calculations. Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claims development patterns, mortality, medical costs and interest rates. The valuation gain in 2022 is due to an increase in the discount rate from 2.41% on December 31, 2021 to 4.22% on June 30, 202 2 . The valuation gain in 2021 is due to an increase in the discount rate from 1.95% on December 31, 2020 to 2.34% on June 30, 202 1 . We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a claim have been met. The deductible level may vary by claim year. Our workers' compensation liability above is presented on a gross basis and does not include our expected receivables on our insurance policy. Our receivables for traumatic injury claims under this policy as of June 30, 2022 are $5.7 million and are included in Other long-term assets Certain of our mine operating entities are liable under state statutes and the Federal Coal Mine Health and Safety Act of 1969, as amended, to pay pneumoconiosis, or black lung, benefits to eligible employees and former employees and their dependents. Components of the net periodic benefit cost for each of the periods presented are as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Service cost $ 954 $ 989 $ 1,901 $ 2,020 Interest cost (1) 749 637 1,496 1,273 Net amortization (1) 259 1,043 519 2,086 Net periodic benefit cost $ 1,962 $ 2,669 $ 3,916 $ 5,379 (1) Interest cost and net amortization are included in the Other income (expense) line item within our condensed consolidated statements of income. |
COMMON UNIT-BASED COMPENSATION
COMMON UNIT-BASED COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2022 | |
COMMON UNIT-BASED COMPENSATION PLANS | |
COMMON UNIT-BASED COMPENSATION PLANS | 14. COMMON UNIT-BASED COMPENSATION PLANS Long-Term Incentive Plan We maintain the LTIP for certain employees and officers of MGP and its affiliates who perform services for us. As part of our LTIP, unit awards of non-vested "phantom" or notional units, also referred to as "restricted units", may be granted which upon satisfaction of time and performance-based vesting requirements, entitle the LTIP participant to receive ARLP common units. Certain awards may also contain a minimum-value guarantee payable in ARLP common units or cash that would be paid regardless of whether or not the awards vest, as long as service requirements are met. Annual grant levels, vesting provisions and minimum-value guarantees of restricted units for designated participants are recommended by Mr. Craft, subject to review and approval of the compensation committee of the MGP board of directors (the "Compensation Committee"). Vesting of all restricted units outstanding is subject to the satisfaction of certain financial tests. If it is not probable the financial tests for a particular grant of restricted units will be met, any previously expensed amounts for that grant are reversed and no future expense will be recognized for that grant. Assuming the financial tests are met, grants of restricted units issued to LTIP participants are generally expected to cliff vest on January 1st of the third year following issuance of the grants. We expect to settle restricted unit grants by delivery of newly-issued ARLP common units, except for the portion of the grants that will satisfy employee tax withholding obligations of LTIP participants. We account for forfeitures of non-vested LTIP restricted unit grants as they occur. As provided under the distribution equivalent rights ("DERs") provisions of the LTIP and the terms of the LTIP restricted unit awards, all non-vested restricted units include contingent rights to receive quarterly distributions in cash or, at the discretion of the Compensation Committee, phantom units in lieu of cash credited to a bookkeeping account with value equal to the cash distributions we make to unitholders during the vesting period. If it is not probable the financial tests for a particular grant of restricted units will be met, any previously paid DER amounts for that grant are reversed from Partners’ Capital and recorded as compensation expense and future DERs for that grant, if any, will be recognized as compensation expense when paid. A summary of non-vested LTIP grants as of and for the six months ended June 30, 2022 is as follows: Number of units Weighted average grant date fair value per unit Intrinsic value (in thousands) Non-vested grants at January 1, 2022 3,130,475 $ 5.59 $ 39,569 Granted (1) 687,719 13.34 Forfeited (165,224) 6.72 Non-vested grants at June 30, 2022 3,652,970 7.00 66,594 (1) The restricted units granted during 2022 have minimum-value guarantees of either $9.62 or $6.41 per unit, regardless of whether or not the awards vest. LTIP expense for grants of restricted units was $2.1 million and $ 1.4 million for the three months ended June 30, 2022 and 2021, respectively, and $4.4 million and $2.1 million for the six months ended June 30, 2022 and 2021, respectively. The total obligation associated with LTIP grants of restricted units as of June 30, 2022 was $ 11.0 million and is included in the partners' capital Limited partners-common unitholders line item in our condensed consolidated balance sheets. As of June 30, 2022, there was $14.5 million in total unrecognized compensation expense related to the non-vested LTIP restricted unit grants that are expected to vest. That expense is expected to be recognized over a weighted-average period of 1.3 years. Supplemental Executive Retirement Plan and Directors' Deferred Compensation Plan We utilize the SERP to provide deferred compensation benefits for certain officers and key employees. All allocations made to participants under the SERP are made in the form of "phantom" ARLP units and SERP distributions will be settled in the form of ARLP common units. The SERP is administered by the Compensation Committee. Our directors participate in the Directors' Deferred Compensation Plan. Pursuant to the Directors' Deferred Compensation Plan, for amounts deferred either automatically or at the election of the director, a notional account is established and credited with notional common units of ARLP, described in the Directors' Deferred Compensation Plan as "phantom" units. Distributions from the Directors' Deferred Compensation Plan will be settled in the form of ARLP common units. For both the SERP and Directors' Deferred Compensation Plan, when quarterly cash distributions are made with respect to ARLP common units, an amount equal to such quarterly distribution is credited to each participant's notional account as additional phantom units. All grants of phantom units under the SERP and Directors' Deferred Compensation Plan vest immediately. A summary of SERP and Directors' Deferred Compensation Plan activity as of and for the six months ended June 30, 2022 is as follows: Number of units Weighted average grant date fair value per unit Intrinsic value (in thousands) Phantom units outstanding as of January 1, 2022 668,698 $ 20.37 $ 8,452 Granted 25,359 15.80 Phantom units outstanding as of June 30, 2022 694,057 20.20 12,653 Total SERP and Directors' Deferred Compensation Plan expense was $0.3 million and $0.1 million for the three months ended June 30, 2022 and 2021, respectively, and $0.6 million and $0.2 million for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, the total obligation associated with the SERP and Directors' Deferred Compensation Plan was $14.0 million and is included in the partners' capital Limited partners-common unitholders |
COMPONENTS OF PENSION PLAN NET
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS | 6 Months Ended |
Jun. 30, 2022 | |
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS | |
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS | 15. COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS Eligible employees at certain of our mining operations participate in a defined benefit plan (the "Pension Plan") that we sponsor. The Pension Plan is currently closed to new applicants and participants in the Pension Plan are no longer receiving benefit accruals for service. The benefit formula for the Pension Plan is a fixed dollar unit based on years of service. Components of the net periodic benefit cost for each of the periods presented are as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Interest cost $ 936 $ 860 $ 1,868 $ 1,720 Expected return on plan assets (1,664) (1,671) (3,329) (3,342) Amortization of prior service cost 46 46 93 93 Amortization of net loss 489 1,142 972 2,283 Net periodic benefit cost (1) $ (193) $ 377 $ (396) $ 754 (1) Net periodic benefit cost for the Pension Plan is included in the Other income (expense) line item within our condensed consolidated statements of income. As a result of certain pension plan contribution relief provided by the American Rescue Plan Act enacted in March 2021, we do not expect to make contributions to the Pension Plan during 2022. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 16. 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. Our two 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. The two 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 operating mining complexes (a) the Gibson County Coal, LLC mining complex, (b) the Warrior Coal, LLC mining complex, (c) the River View Coal, LLC mining complex and (d) the Hamilton County Coal, LLC 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 Illinois Basin mining complexes. The Appalachia Coal Operations reportable segment includes operating mining complexes (a) the Mettiki mining complex, (b) the Tunnel Ridge, LLC mining complex and (c) the MC Mining, LLC mining complex. The Mettiki mining complex includes Mettiki Coal (WV), LLC's Mountain View mine and Mettiki Coal, LLC's preparation plant. The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by AR Midland, LP ("AR Midland") and AllDale I & II and includes Alliance Minerals' equity interests in both AllDale III (Note 9 – Investments) and Cavalier Minerals. The 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 two thirds 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, Matrix Design Group, LLC, its subsidiaries, and Alliance Design Group, LLC (collectively referred to as the "Matrix Group"), our investments in Francis, Infinitum and NGP ETP IV (see Note 9 – Investments), Wildcat Insurance, LLC, which assists the ARLP Partnership with its insurance requirements, AROP Funding and Alliance Finance (both discussed in Note 6 – Long-Term Debt), Pontiki Coal, LLC's workers' compensation and pneumoconiosis liabilities and other miscellaneous activities. 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 Other, Illinois Corporate and Basin Appalachia Oil & Gas Coal Elimination Consolidated (in thousands) Three Months Ended June 30, 2022 Revenues - Outside $ 313,497 $ 255,682 $ 36,579 $ — $ 10,743 $ 616,501 Revenues - Intercompany — — — 14,525 (14,525) — Total revenues (1) 313,497 255,682 36,579 14,525 (3,782) 616,501 Segment Adjusted EBITDA Expense (2) 194,697 117,369 3,234 5,398 (4,624) 316,074 Segment Adjusted EBITDA (3) 97,352 124,377 34,609 9,127 839 266,304 Capital expenditures 35,343 22,491 — — 4,995 62,829 Three Months Ended June 30, 2021 Revenues - Outside $ 218,233 $ 120,723 $ 17,587 $ — $ 5,900 $ 362,443 Revenues - Intercompany — — — 11,653 (11,653) — Total revenues (1) 218,233 120,723 17,587 11,653 (5,753) 362,443 Segment Adjusted EBITDA Expense (2) 140,176 74,456 2,419 4,871 (7,418) 214,504 Segment Adjusted EBITDA (3) 70,623 41,641 15,379 6,782 1,667 136,092 Capital expenditures 12,515 10,382 — — 1,292 24,189 Six Months Ended June 30, 2022 Revenues - Outside $ 588,193 $ 400,981 $ 67,540 $ — $ 20,650 $ 1,077,364 Revenues - Intercompany — — — 29,692 (29,692) — Total revenues (1) 588,193 400,981 67,540 29,692 (9,042) 1,077,364 Segment Adjusted EBITDA Expense (2) 372,286 201,084 6,235 10,217 (12,568) 577,254 Segment Adjusted EBITDA (3) 175,567 175,480 63,161 19,475 3,525 437,208 Total assets 748,291 457,724 667,278 288,509 171,389 2,333,191 Capital expenditures 71,890 40,836 — — 9,256 121,982 Six Months Ended June 30, 2021 Revenues - Outside $ 409,167 $ 229,342 $ 31,607 $ — $ 10,949 $ 681,065 Revenues - Intercompany — — — 22,954 (22,954) — Total revenues (1) 409,167 229,342 31,607 22,954 (12,005) 681,065 Segment Adjusted EBITDA Expense (2) 265,757 148,182 4,477 8,899 (15,094) 412,221 Segment Adjusted EBITDA (3) 128,296 73,147 27,325 14,055 3,090 245,913 Total assets 726,555 425,574 604,355 292,134 66,895 2,115,513 Capital expenditures 28,916 22,048 — — 4,662 55,626 (1) Revenues included in the Other, Corporate and Elimination column are attributable to intercompany eliminations, which are primarily intercompany coal royalty 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 and other income. Transportation expenses are excluded as transportation revenues are recognized in an amount equal to transportation expenses when title passes to the customer. The following is a reconciliation of consolidated Segment Adjusted EBITDA Expense to Operating expenses (excluding depreciation, depletion and amortization) Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Segment Adjusted EBITDA Expense $ 316,074 $ 214,504 $ 577,254 $ 412,221 Outside coal purchases (151) (114) (151) (114) Other income (expense) 579 (1,351) 1,145 (2,548) Operating expenses (excluding depreciation, depletion and amortization) $ 316,502 $ 213,039 $ 578,248 $ 409,559 (3) 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. Management therefore is able 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. Consolidated Segment Adjusted EBITDA is reconciled to net income as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Consolidated Segment Adjusted EBITDA $ 266,304 $ 136,092 $ 437,208 $ 245,913 General and administrative (22,457) (17,492) (41,053) (32,996) Depreciation, depletion and amortization (66,734) (64,733) (130,048) (123,935) Interest expense, net (9,304) (9,827) (18,931) (20,206) Income tax (expense) benefit (6,331) (5) (49,046) 7 Net income attributable to ARLP $ 161,478 $ 44,035 $ 198,130 $ 68,783 Noncontrolling interest 323 130 613 208 Net income $ 161,801 $ 44,165 $ 198,743 $ 68,991 |
ORGANIZATION AND PRESENTATION (
ORGANIZATION AND PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
ORGANIZATION AND PRESENTATION | |
Consolidation | Significant Relationships Referenced in Notes to Condensed Consolidated Financial Statements ● References to "we," "us," "our" or "ARLP Partnership" mean the business and operations of Alliance Resource Partners, L.P., the parent company, as well as its consolidated subsidiaries. ● References to "ARLP" mean Alliance Resource Partners, L.P., individually as the parent company, and not on a consolidated basis. ● References to "MGP" mean Alliance Resource Management GP, LLC, ARLP's general partner. ● References to "Mr. Craft" mean Joseph W. Craft III, the Chairman, President and Chief Executive Officer of MGP. ● References to "Intermediate Partnership" mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P. ● References to "Alliance Coal" mean Alliance Coal, LLC, the holding company for our coal mining operations. ● References to "Alliance Minerals" mean Alliance Minerals, LLC, the holding company for our oil and gas mineral interests. ● References to "Alliance Resource Properties" mean Alliance Resource Properties, LLC, the land holding company for certain of our coal mineral interests, including the subsidiaries of Alliance Resource Properties, LLC. Organization ARLP is a Delaware limited partnership listed on the NASDAQ Global Select Market under the ticker symbol "ARLP." ARLP was formed in May 1999 and completed its initial public offering on August 19, 1999 when it acquired substantially all of the coal production and marketing assets of Alliance Resource Holdings, Inc., a Delaware corporation, and its subsidiaries. We are managed by our general partner, MGP, a Delaware limited liability company which holds a non-economic general partner interest in ARLP. |
Change in Tax Status | Change in Tax Status On March 15, 2022, Alliance Minerals changed its federal income tax status from a pass-through entity to a taxable entity via a "check the box" election (the "Tax Election"), which became effective January 1, 2022. This election for Alliance Minerals is anticipated to reduce the total income tax burden on our oil & gas royalties, as Alliance Minerals will pay entity-level taxes at corporate tax rates that are well below individual tax rates that would otherwise be paid by our unitholders. For more information on the Tax Election please see Note 7 – Income Taxes. |
Investment | Francis Investment On April 5, 2022, we committed to invest up to $50 million in Francis Renewable Energy, LLC ("Francis") through the purchase of preferred equity interests. Francis currently is active in the installation, management and operation of metered-for-fee, public-access electric vehicle ("EV") charging stations. Francis also develops and constructs EV charging stations for third-party customers. Our investment in Francis furthers our business strategy to develop strategic relationships and invest in attractive opportunities in the fast-growing energy infrastructure transition. For more information on this investment please see Note 8 – Variable Interest Entities. Infinitum Investment On April 29, 2022, we purchased $32.6 million of Series D Preferred Stock from Infinitum Electric, Inc. ("Infinitum"), a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators which have the potential to result in motors that are smaller, lighter, quieter, more efficient and capable of operating at a fraction of the carbon footprint of conventional electric motors. The preferred stock provides for non-cumulative dividends when and if declared by Infinitum’s board of directors. Each share is convertible, at any time, at our option, into shares of common stock of Infinitum. Our investment in Infinitum furthers our business strategy to develop strategic relationships and invest in attractive opportunities in the fast-growing energy infrastructure transition. For more information on this investment please see Note 9 – Investments. NGP ETP IV Investment On June 2, 2022, we committed to purchase $25.0 million of limited partner interests in NGP ETP IV, L.P. ("NGP ETP IV"), a |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of June 30, 2022 and December 31, 2021, the results of our operations and comprehensive income for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021. All intercompany transactions and accounts have been eliminated. These condensed consolidated financial statements and notes are prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting and do not include all the information normally included with financial statements prepared in accordance with generally accepted accounting principles ("GAAP") of the United States. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021. These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of the results for the periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2022. |
Use of Estimates | Use of Estimates The preparation of the ARLP Partnership's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in our condensed consolidated financial statements. Actual results could differ from those estimates. |
Income Taxes | Income Taxes We are not a taxable entity for federal or state income tax purposes; the tax effect of our activities accrues to our unitholders. Although publicly traded partnerships as a general rule are taxed as corporations, we qualify for an exemption because at least 90% of our income consists of qualifying income, as defined in Section 7704(c) of the Internal Revenue Code. Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax basis and financial reporting basis of assets and liabilities and the taxable income allocation requirements under our partnership agreement. Individual unitholders have different investment bases depending upon the timing and price of acquisition of their partnership units. Furthermore, each unitholder's tax accounting, which is partially dependent upon the unitholder's tax position, differs from the accounting followed in our consolidated financial statements. Accordingly, the aggregate difference in the basis of our net assets for financial and tax reporting purposes cannot be readily determined because information regarding each unitholder's tax attributes in our partnership is not available to us. Our subsidiary Alliance Minerals within our Oil & Gas Royalties segment and certain other subsidiaries within our Other, Corporate and Elimination category are subject to federal and state income taxes. We use the liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities and (ii) operating losses and tax credit carryforwards. Deferred income tax assets and liabilities are based on enacted rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax status or a change in tax rates on deferred tax assets and liabilities is recognized in the period the change in status is elected or rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized. |
New Accounting Standards Issued and Adopted | New Accounting Standards Issued and Adopted In November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance ("ASU 2021-10"). ASU 2021-10 increases the transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. We adopted ASU 2021-10 on January 1, 2022. The adoption of ASU 2021-10 did not have a material impact on our condensed consolidated financial statements. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
INVENTORIES | |
Schedule of inventories | June 30, December 31, 2022 2021 (in thousands) Coal $ 63,933 $ 24,845 Supplies (net of reserve for obsolescence of $5,620 and $5,554, respectively) 45,743 35,457 Total inventories, net $ 109,676 $ 60,302 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
Summary of fair value measurements within the hierarchy | June 30, 2022 December 31, 2021 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Long-term debt $ — $ 428,645 $ — $ — $ 457,758 $ — Total $ — $ 428,645 $ — $ — $ 457,758 $ — |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
LONG-TERM DEBT | |
Schedule of long-term debt | Unamortized Discount and Principal Debt Issuance Costs June 30, December 31, June 30, December 31, 2022 2021 2022 2021 (in thousands) Revolving credit facility $ — $ — $ (3,861) $ (5,019) Senior notes 400,000 400,000 (2,592) (3,048) Securitization facility — — — — May 2019 equipment financing — 1,503 — — November 2019 equipment financing 26,587 31,972 — — June 2020 equipment financing 7,799 9,605 — — 434,386 443,080 (6,453) (8,067) Less current maturities (14,942) (16,071) — — Total long-term debt $ 419,444 $ 427,009 $ (6,453) $ (8,067) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
INCOME TAXES | |
Components of income tax expense (benefit) | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Current: Federal $ 6,175 $ — $ 11,209 $ (1) State 445 — 831 — 6,620 — 12,040 (1) Deferred: Federal (255) 5 34,665 (6) State (34) — 2,341 — (289) 5 37,006 (6) Income tax expense (benefit) $ 6,331 $ 5 $ 49,046 $ (7) |
Reconciliation from provision for income taxes at U.S. federal statutory rate to effective tax rate | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Income taxes at statutory rate $ 30,738 $ 9,276 $ 47,466 $ 14,487 Less: Income taxes at statutory rate on Partnership income not subject to income taxes (25,018) (9,141) (37,105) (14,174) Increase (decrease) resulting from: State taxes, net of federal income tax 457 34 818 72 Change in valuation allowance of deferred tax assets 11 (142) 1 (305) Deferred taxes related to tax election — — 37,253 — Other 143 (22) 613 (87) Income tax expense (benefit) $ 6,331 $ 5 $ 49,046 $ (7) |
Components of deferred tax liabilities and deferred tax assets | June 30, December 31, 2022 2021 (in thousands) Deferred tax liabilities: Property, plant and equipment $ (38,710) $ (2,169) Total deferred tax liabilities (38,710) (2,169) Deferred tax assets: Federal loss carryovers and credits 933 1,328 Other 764 808 Total deferred tax assets 1,697 2,136 Less valuation allowance (318) (317) Net deferred tax assets 1,379 1,819 Overall net deferred tax liabilities $ (37,331) $ (350) |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
VARIABLE INTEREST ENTITIES | |
Schedule of distributions | Alliance Bluegrass Minerals Minerals (in thousands) Contributions $ 143,112 $ 5,963 Distributions 124,945 5,205 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
All Dale Minerals III | |
INVESTMENTS | |
Schedule of changes in equity method investments | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Beginning balance $ 26,194 $ 26,907 $ 26,325 $ 27,268 Equity method investment income 1,585 341 2,468 403 Distributions received (1,501) (974) (2,515) (1,397) Ending balance $ 26,278 $ 26,274 $ 26,278 $ 26,274 |
Francis Renewable Energy | |
INVESTMENTS | |
Schedule of changes in equity method investments | Three Months Ended June 30, 2022 (in thousands) Beginning balance $ — Contributions 20,000 Ending balance $ 20,000 |
NGP ETP | |
INVESTMENTS | |
Schedule of changes in equity method investments | Three Months Ended June 30, 2022 (in thousands) Beginning balance $ — Contributions 110 Ending balance $ 110 |
PARTNERS' CAPITAL (Tables)
PARTNERS' CAPITAL (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
PARTNERS' CAPITAL | |
Summary of quarterly per unit distribution paid | Payment Date Per Unit Cash Distribution Total Cash Distribution (in thousands) May 14, 2021 $ 0.1000 $ 13,045 August 13, 2021 0.1000 13,041 November 12, 2021 0.2000 26,072 Total $ 0.4000 $ 52,158 February 14, 2022 $ 0.2500 $ 32,750 May 13, 2022 0.3500 45,810 August 12, 2022 (1) 0.4000 — Total $ 1.0000 $ 78,560 (1) On July 26, 2022, we declared this quarterly distribution payable on August 12, 2022 to all unitholders of record as of August 5, 2022. |
Summary of changes to Partners' Capital | Accumulated Number of Limited Other Limited Partner Partners' Comprehensive Noncontrolling Total Partners' Units Capital Income (Loss) Interest Capital (in thousands, except unit data) Balance at January 1, 2022 127,195,219 $ 1,279,183 $ (64,229) $ 11,115 $ 1,226,069 Comprehensive income: Net income — 36,652 — 290 36,942 Actuarially determined long-term liability adjustments — — 790 — 790 Total comprehensive income 37,732 Common unit-based compensation — 2,640 — — 2,640 Distributions on deferred common unit-based compensation — (950) — — (950) Distributions from consolidated company to noncontrolling interest — — — (298) (298) Distributions to Partners — (31,800) — — (31,800) Balance at March 31, 2022 127,195,219 1,285,725 (63,439) 11,107 1,233,393 Comprehensive income: Net income — 161,478 — 323 161,801 Actuarially determined long-term liability adjustments — — 794 — 794 Total comprehensive income 162,595 Common unit-based compensation — 2,340 — — 2,340 Distributions on deferred common unit-based compensation — (1,292) — — (1,292) Distributions from consolidated company to noncontrolling interest — — — (325) (325) Distributions to Partners — (44,518) — — (44,518) Balance at June 30, 2022 127,195,219 $ 1,403,733 $ (62,645) $ 11,105 $ 1,352,193 Accumulated Number of Limited Other Limited Partner Partners' Comprehensive Noncontrolling Total Partners' Units Capital Income (Loss) Interest Capital (in thousands, except unit data) Balance at January 1, 2021 127,195,219 $ 1,148,565 $ (87,674) $ 11,376 $ 1,072,267 Comprehensive income: Net income — 24,748 — 78 24,826 Actuarially determined long-term liability adjustments — — 2,231 — 2,231 Total comprehensive income 27,057 Common unit-based compensation — 723 — — 723 Distributions from consolidated company to noncontrolling interest — — — (141) (141) Balance at March 31, 2021 127,195,219 1,174,036 (85,443) 11,313 1,099,906 Comprehensive income: Net income — 44,035 — 130 44,165 Actuarially determined long-term liability adjustments — — 2,231 — 2,231 Total comprehensive loss 46,396 Common unit-based compensation — 1,485 — — 1,485 Distributions on deferred common unit-based compensation — (324) — — (324) Distributions from consolidated company to noncontrolling interest — — — (222) (222) Distributions to Partners — (12,721) — — (12,721) Balance at June 30, 2021 127,195,219 $ 1,206,511 $ (83,212) $ 11,221 $ 1,134,520 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of disaggregation of revenues by type | Coal Operations Royalties Other, Illinois Corporate and Basin Appalachia Oil & Gas Coal Elimination Consolidated (in thousands) Three Months Ended June 30, 2022 Coal sales $ 290,389 $ 241,418 $ — $ — $ — $ 531,807 Oil & gas royalties — — 35,927 — — 35,927 Coal royalties — — — 14,525 (14,525) — Transportation revenues 21,449 13,936 — — — 35,385 Other revenues 1,659 328 652 — 10,743 13,382 Total revenues $ 313,497 $ 255,682 $ 36,579 $ 14,525 $ (3,782) $ 616,501 Three Months Ended June 30, 2021 Coal sales $ 210,157 $ 115,817 $ — $ — $ — $ 325,974 Oil & gas royalties — — 17,114 — — 17,114 Coal royalties — — — 11,653 (11,653) — Transportation revenues 7,434 4,624 — — — 12,058 Other revenues 642 282 473 — 5,900 7,297 Total revenues $ 218,233 $ 120,723 $ 17,587 $ 11,653 $ (5,753) $ 362,443 Six Months Ended June 30, 2022 Coal sales $ 544,294 $ 375,873 $ — $ — $ — $ 920,167 Oil & gas royalties — — 66,854 — — 66,854 Coal royalties — — — 29,692 (29,692) — Transportation revenues 40,340 24,417 — — — 64,757 Other revenues 3,559 691 686 — 20,650 25,586 Total revenues $ 588,193 $ 400,981 $ 67,540 $ 29,692 $ (9,042) $ 1,077,364 Six Months Ended June 30, 2021 Coal sales $ 392,798 $ 220,663 $ — $ — $ — $ 613,461 Oil & gas royalties — — 31,113 — — 31,113 Coal royalties — — — 22,954 (22,954) — Transportation revenues 15,114 8,012 — — — 23,126 Other revenues 1,255 667 494 — 10,949 13,365 Total revenues $ 409,167 $ 229,342 $ 31,607 $ 22,954 $ (12,005) $ 681,065 |
Schedule of current coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied | 2025 and 2022 2023 2024 Thereafter Total (in thousands) Illinois Basin Coal Operations coal revenues $ 650,837 $ 729,307 $ 361,381 $ 290,746 $ 2,032,271 Appalachia Coal Operations coal revenues 381,828 335,595 236,536 40,701 994,660 Total coal revenues (1) $ 1,032,665 $ 1,064,902 $ 597,917 $ 331,447 $ 3,026,931 (1) Coal revenues generally consists of consolidated revenues excluding our Oil & Gas Royalties segment as well as intercompany revenues from our Coal Royalties segment . |
EARNINGS PER LIMITED PARTNER _2
EARNINGS PER LIMITED PARTNER UNIT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
EARNINGS PER LIMITED PARTNER UNIT | |
Reconciliation of net income and EPU calculations | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands, except per unit data) Net income attributable to ARLP $ 161,478 $ 44,035 $ 198,130 $ 68,783 Less: Distributions to participating securities (1,720) (401) (3,272) (619) Undistributed earnings attributable to participating securities (3,645) (825) (3,245) (934) Net income attributable to ARLP available to limited partners $ 156,113 $ 42,809 $ 191,613 $ 67,230 Weighted-average limited partner units outstanding – basic and diluted 127,195 127,195 127,195 127,195 Earnings per limited partner unit - basic and diluted (1) $ 1.23 $ 0.34 $ 1.51 $ 0.53 (1) Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive. The combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 3,529 and 3,289 for the three and six months ended June 30, 2022, respectively, and 1,525 and 1,397 for the three and six months ended June 30, 2021 , respectively, were considered anti-dilutive under the treasury stock method . |
WORKERS' COMPENSATION AND PNE_2
WORKERS' COMPENSATION AND PNEUMOCONIOSIS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Black lung benefits: | |
Reconciliation of changes in workers' compensation liability | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Beginning balance $ 53,206 $ 54,233 $ 53,448 $ 54,739 Accruals increase 2,271 1,565 4,546 3,237 Payments (3,278) (2,565) (6,082) (4,975) Interest accretion 287 231 574 463 Valuation gain (1) (5,265) (1,405) (5,265) (1,405) Ending balance $ 47,221 $ 52,059 $ 47,221 $ 52,059 (1) Our estimate of the liability for the present value of current workers′ compensation benefits is based on our actuarial calculations. Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claims development patterns, mortality, medical costs and interest rates. The valuation gain in 2022 is due to an increase in the discount rate from 2.41% on December 31, 2021 to 4.22% on June 30, 202 2 . The valuation gain in 2021 is due to an increase in the discount rate from 1.95% on December 31, 2020 to 2.34% on June 30, 202 1 . |
Pneumoconiosis benefits | |
Black lung benefits: | |
Components of net periodic benefit cost | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Service cost $ 954 $ 989 $ 1,901 $ 2,020 Interest cost (1) 749 637 1,496 1,273 Net amortization (1) 259 1,043 519 2,086 Net periodic benefit cost $ 1,962 $ 2,669 $ 3,916 $ 5,379 (1) Interest cost and net amortization are included in the Other income (expense) line item within our condensed consolidated statements of income. |
COMMON UNIT-BASED COMPENSATIO_2
COMMON UNIT-BASED COMPENSATION PLANS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
COMMON UNIT-BASED COMPENSATION PLANS | |
Summary of non-vested share activity | Number of units Weighted average grant date fair value per unit Intrinsic value (in thousands) Non-vested grants at January 1, 2022 3,130,475 $ 5.59 $ 39,569 Granted (1) 687,719 13.34 Forfeited (165,224) 6.72 Non-vested grants at June 30, 2022 3,652,970 7.00 66,594 (1) The restricted units granted during 2022 have minimum-value guarantees of either $9.62 or $6.41 per unit, regardless of whether or not the awards vest. |
SERP and Deferred Compensation Plans | |
COMMON UNIT-BASED COMPENSATION PLANS | |
Summary of activity in share-based plans | Number of units Weighted average grant date fair value per unit Intrinsic value (in thousands) Phantom units outstanding as of January 1, 2022 668,698 $ 20.37 $ 8,452 Granted 25,359 15.80 Phantom units outstanding as of June 30, 2022 694,057 20.20 12,653 |
COMPONENTS OF PENSION PLAN NE_2
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Defined benefit pension plan | |
Employee Benefit Plans | |
Components of net periodic benefit cost | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Interest cost $ 936 $ 860 $ 1,868 $ 1,720 Expected return on plan assets (1,664) (1,671) (3,329) (3,342) Amortization of prior service cost 46 46 93 93 Amortization of net loss 489 1,142 972 2,283 Net periodic benefit cost (1) $ (193) $ 377 $ (396) $ 754 (1) Net periodic benefit cost for the Pension Plan is included in the Other income (expense) line item within our condensed consolidated statements of income. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SEGMENT INFORMATION | |
Schedule of reportable segment results | Coal Operations Royalties Other, Illinois Corporate and Basin Appalachia Oil & Gas Coal Elimination Consolidated (in thousands) Three Months Ended June 30, 2022 Revenues - Outside $ 313,497 $ 255,682 $ 36,579 $ — $ 10,743 $ 616,501 Revenues - Intercompany — — — 14,525 (14,525) — Total revenues (1) 313,497 255,682 36,579 14,525 (3,782) 616,501 Segment Adjusted EBITDA Expense (2) 194,697 117,369 3,234 5,398 (4,624) 316,074 Segment Adjusted EBITDA (3) 97,352 124,377 34,609 9,127 839 266,304 Capital expenditures 35,343 22,491 — — 4,995 62,829 Three Months Ended June 30, 2021 Revenues - Outside $ 218,233 $ 120,723 $ 17,587 $ — $ 5,900 $ 362,443 Revenues - Intercompany — — — 11,653 (11,653) — Total revenues (1) 218,233 120,723 17,587 11,653 (5,753) 362,443 Segment Adjusted EBITDA Expense (2) 140,176 74,456 2,419 4,871 (7,418) 214,504 Segment Adjusted EBITDA (3) 70,623 41,641 15,379 6,782 1,667 136,092 Capital expenditures 12,515 10,382 — — 1,292 24,189 Six Months Ended June 30, 2022 Revenues - Outside $ 588,193 $ 400,981 $ 67,540 $ — $ 20,650 $ 1,077,364 Revenues - Intercompany — — — 29,692 (29,692) — Total revenues (1) 588,193 400,981 67,540 29,692 (9,042) 1,077,364 Segment Adjusted EBITDA Expense (2) 372,286 201,084 6,235 10,217 (12,568) 577,254 Segment Adjusted EBITDA (3) 175,567 175,480 63,161 19,475 3,525 437,208 Total assets 748,291 457,724 667,278 288,509 171,389 2,333,191 Capital expenditures 71,890 40,836 — — 9,256 121,982 Six Months Ended June 30, 2021 Revenues - Outside $ 409,167 $ 229,342 $ 31,607 $ — $ 10,949 $ 681,065 Revenues - Intercompany — — — 22,954 (22,954) — Total revenues (1) 409,167 229,342 31,607 22,954 (12,005) 681,065 Segment Adjusted EBITDA Expense (2) 265,757 148,182 4,477 8,899 (15,094) 412,221 Segment Adjusted EBITDA (3) 128,296 73,147 27,325 14,055 3,090 245,913 Total assets 726,555 425,574 604,355 292,134 66,895 2,115,513 Capital expenditures 28,916 22,048 — — 4,662 55,626 (1) Revenues included in the Other, Corporate and Elimination column are attributable to intercompany eliminations, which are primarily intercompany coal royalty 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 and other income. Transportation expenses are excluded as transportation revenues are recognized in an amount equal to transportation expenses when title passes to the customer. |
Reconciliation of consolidated Segment Adjusted EBITDA Expense to operating expenses (excluding depreciation, depletion and amortization) | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Segment Adjusted EBITDA Expense $ 316,074 $ 214,504 $ 577,254 $ 412,221 Outside coal purchases (151) (114) (151) (114) Other income (expense) 579 (1,351) 1,145 (2,548) Operating expenses (excluding depreciation, depletion and amortization) $ 316,502 $ 213,039 $ 578,248 $ 409,559 |
Reconciliation of consolidated Segment Adjusted EBITDA to net income | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Consolidated Segment Adjusted EBITDA $ 266,304 $ 136,092 $ 437,208 $ 245,913 General and administrative (22,457) (17,492) (41,053) (32,996) Depreciation, depletion and amortization (66,734) (64,733) (130,048) (123,935) Interest expense, net (9,304) (9,827) (18,931) (20,206) Income tax (expense) benefit (6,331) (5) (49,046) 7 Net income attributable to ARLP $ 161,478 $ 44,035 $ 198,130 $ 68,783 Noncontrolling interest 323 130 613 208 Net income $ 161,801 $ 44,165 $ 198,743 $ 68,991 |
ORGANIZATION AND PRESENTATION_2
ORGANIZATION AND PRESENTATION (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 02, 2022 | Apr. 29, 2022 | Apr. 05, 2022 |
Ownership interests | ||||
Equity investment without readily determinable fair value | $ 32,639 | |||
Francis Renewable Energy | ||||
Ownership interests | ||||
Funding commitment | $ 50,000 | |||
Infinitum Electric | ||||
Ownership interests | ||||
Equity investment without readily determinable fair value | $ 32,600 | |||
NGP ETP | ||||
Ownership interests | ||||
Funding commitment | $ 25,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
INVENTORIES | ||
Coal | $ 63,933 | $ 24,845 |
Supplies (net of reserve for obsolescence of $5,571 and $5,554, respectively) | 45,743 | 35,457 |
Total inventories, net | 109,676 | 60,302 |
Reserve for obsolescence | $ 5,620 | $ 5,554 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Estimated fair value - Significant Observable Inputs (Level 2) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
FAIR VALUE MEASUREMENTS | ||
Long-term debt | $ 428,645 | $ 457,758 |
Total | $ 428,645 | $ 457,758 |
LONG-TERM DEBT - Components (De
LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Principal | ||
Aggregate maturities of long-term debt | $ 434,386 | $ 443,080 |
Less current maturities | (14,942) | (16,071) |
Total long-term debt | 419,444 | 427,009 |
Unamortized Discount and Debt Issuance Costs | ||
Unamortized debt issuance costs including current and non-current | (6,453) | (8,067) |
Total unamortized debt issuance costs | (6,453) | (8,067) |
Revolving credit facility | ||
Unamortized Discount and Debt Issuance Costs | ||
Unamortized debt issuance costs including current and non-current | (3,861) | (5,019) |
Senior notes due 2025 | ||
Principal | ||
Aggregate maturities of long-term debt | 400,000 | 400,000 |
Unamortized Discount and Debt Issuance Costs | ||
Unamortized debt issuance costs including current and non-current | (2,592) | (3,048) |
May 2019 equipment financing | ||
Principal | ||
Aggregate maturities of long-term debt | 1,503 | |
November 2019 equipment financing | ||
Principal | ||
Aggregate maturities of long-term debt | 26,587 | 31,972 |
June 2020 equipment financing | ||
Principal | ||
Aggregate maturities of long-term debt | $ 7,799 | $ 9,605 |
LONG-TERM DEBT - Credit Facilit
LONG-TERM DEBT - Credit Facility (Details) $ in Millions | 6 Months Ended | |
Mar. 09, 2020 USD ($) | Jun. 30, 2022 USD ($) | |
Credit Agreement | ||
Long-Term Debt | ||
Maximum borrowing capacity | $ 459.5 | |
ARLP debt arrangements requirements, fixed charge coverage ratio | 1 | |
ARLP debt arrangements requirements, debt to cash flow ratio | 2.5 | |
ARLP debt arrangements requirements, cash flow to interest expense ratio | 3 | |
Actual debt to cash flow ratio for trailing twelve months | 0.74 | |
Actual cash flow to interest expense ratio for trailing twelve months | 15.52 | |
ARLP debt arrangements requirements, period over which the ratios are required to be maintained | 12 months | |
Credit Agreement | Credit Agreement, first lien | ||
Long-Term Debt | ||
ARLP debt arrangements requirements, debt to cash flow ratio | 1.5 | |
Actual debt to cash flow ratio for trailing twelve months | 0.07 | |
Revolving credit facility | ||
Long-Term Debt | ||
Debt available for borrowing | $ 415.4 | |
Annual commitment fee percentage, undrawn portion | 0.35% | |
Revolving credit facility | Eurodollar Rate | ||
Long-Term Debt | ||
Effective interest rate (as a percent) | 4.14% | |
Letters of credit subfacility | ||
Long-Term Debt | ||
Maximum borrowing capacity | $ 125 | |
Letters of credit outstanding | $ 44.1 | |
Swingline subfacility | ||
Long-Term Debt | ||
Maximum borrowing capacity | $ 15 |
LONG-TERM DEBT - 2025 Senior No
LONG-TERM DEBT - 2025 Senior Notes (Details) - Senior notes due 2025 $ in Millions | Apr. 24, 2017 USD ($) |
Issuance of Senior Notes | |
Principal amount | $ 400 |
Term | 8 years |
Interest rate (as a percent) | 7.50% |
LONG-TERM DEBT - Securitization
LONG-TERM DEBT - Securitization Facility (Details) - Securitization Facility - USD ($) $ in Millions | Jun. 30, 2022 | Jan. 31, 2021 | Dec. 05, 2014 |
Long-Term Debt | |||
Maximum borrowing capacity | $ 60 | $ 100 | |
Letters of credit outstanding | $ 9.2 | ||
Debt available for borrowing | 50.8 | ||
Facility outstanding amount | $ 0 |
LONG-TERM DEBT - Equipment fina
LONG-TERM DEBT - Equipment financing and other (Details) $ in Millions | Jun. 05, 2020 USD ($) | Nov. 06, 2019 USD ($) payment | May 17, 2019 USD ($) |
May 2019 Equipment Financing | |||
Long-Term Debt | |||
Principal amount | $ 10 | ||
Term | 36 months | ||
Effective interest rate (as a percent) | 6.25% | ||
November 2019 Equipment Financing | |||
Long-Term Debt | |||
Principal amount | $ 53.1 | ||
Term | 4 years | ||
Effective interest rate (as a percent) | 4.75% | ||
Number of monthly payments | payment | 47 | ||
Periodic Payment | $ 1 | ||
Balloon payment on maturity | $ 11.6 | ||
June 2020 equipment financing | |||
Long-Term Debt | |||
Principal amount | $ 14.7 | ||
Term | 48 months | ||
Effective interest rate (as a percent) | 6.10% |
INCOME TAXES - Components (Deta
INCOME TAXES - Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current: | ||||
Federal | $ 6,175 | $ 11,209 | $ (1) | |
State | 445 | 831 | ||
Total current income tax expense (benefit) | 6,620 | 12,040 | (1) | |
Deferred: | ||||
Federal | (255) | $ 5 | 34,665 | (6) |
State | (34) | 2,341 | ||
Total deferred income tax expense (benefit) | (289) | 5 | 37,006 | (6) |
Income tax expense (benefit) | $ 6,331 | $ 5 | $ 49,046 | $ (7) |
INCOME TAXES - Tax election (De
INCOME TAXES - Tax election (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2019 | Dec. 31, 2021 | |
Taxes | ||||||
Deferred tax liability | $ 37,331 | $ 37,331 | $ 350 | |||
Income tax expense | $ 6,331 | $ 5 | $ 49,046 | $ (7) | ||
Earnings per limited partner unit - basic (in dollars per unit) | $ 1.23 | $ 0.34 | $ 1.51 | $ 0.53 | ||
Earnings per limited partner unit - diluted (in dollars per unit) | $ 1.23 | $ 0.34 | $ 1.51 | $ 0.53 | ||
AllDale I and II | ||||||
Taxes | ||||||
Non - cash acquisition gain recognized | $ 177,000 | |||||
Change in tax accounting | ||||||
Taxes | ||||||
Deferred tax liability | $ 37,300 | $ 37,300 | ||||
Income tax expense | $ 37,300 | |||||
Earnings per limited partner unit - basic (in dollars per unit) | $ (0.29) | |||||
Earnings per limited partner unit - diluted (in dollars per unit) | $ (0.29) |
INCOME TAXES - Reconciliation (
INCOME TAXES - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Taxes | ||||
Income taxes at statutory rate | $ 30,738 | $ 9,276 | $ 47,466 | $ 14,487 |
Less: Income taxes at statutory rate on Partnership income not subject to income taxes | (25,018) | (9,141) | (37,105) | (14,174) |
Increase/(decrease) resulting from: | ||||
State taxes, net of federal income tax | 457 | 34 | 818 | 72 |
Change in valuation allowance of deferred tax assets | 11 | (142) | 1 | (305) |
Other | 143 | (22) | 613 | (87) |
Income tax expense (benefit) | $ 6,331 | $ 5 | 49,046 | $ (7) |
Change in tax accounting | ||||
Increase/(decrease) resulting from: | ||||
Deferred taxes related to tax election | 37,253 | |||
Income tax expense (benefit) | $ 37,300 |
INCOME TAXES - Deferred tax (De
INCOME TAXES - Deferred tax (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Deferred tax liabilities: | ||
Property, plant and equipment | $ (38,710) | $ (2,169) |
Deferred tax liabilities | (38,710) | (2,169) |
Deferred tax assets: | ||
Federal loss carryovers and credits | 933 | 1,328 |
Other | 764 | 808 |
Total deferred tax assets | 1,697 | 2,136 |
Less valuation allowance | (318) | (317) |
Net deferred tax assets | 1,379 | 1,819 |
Overall net deferred tax liabilities | $ (37,331) | $ (350) |
VARIABLE INTEREST ENTITIES - Ca
VARIABLE INTEREST ENTITIES - Cavalier (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||
May 13, 2022 | Feb. 14, 2022 | Nov. 12, 2021 | Aug. 13, 2021 | May 14, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Variable Interest Entities | ||||||||
Distributions paid to Partners | $ 45,810 | $ 32,750 | $ 26,072 | $ 13,041 | $ 13,045 | $ 78,560 | $ 13,045 | $ 52,158 |
Cavalier Minerals | Alliance Minerals | ||||||||
Variable Interest Entities | ||||||||
Contributions | 143,112 | |||||||
Distributions paid to Partners | 124,945 | |||||||
Cavalier Minerals | Bluegrass Minerals | ||||||||
Variable Interest Entities | ||||||||
Contributions | 5,963 | |||||||
Distributions paid to Partners | $ 5,205 | |||||||
Cavalier Minerals | Bluegrass Minerals | ||||||||
Variable Interest Entities | ||||||||
Incentive distribution of available cash (as a percent) | 25% | |||||||
Cavalier Minerals | ||||||||
Variable Interest Entities | ||||||||
Ownership interest in VIE (as a percent) | 96% | |||||||
Cavalier Minerals | Bluegrass Minerals | ||||||||
Variable Interest Entities | ||||||||
Noncontrolling ownership interest (as a percent) | 4% |
VARIABLE INTEREST ENTITIES - Al
VARIABLE INTEREST ENTITIES - All Dale III (Detail) - All Dale Minerals III - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Feb. 28, 2017 | |
Investments | ||
Other Commitment | $ 30 | |
Distribution after hurdles (as a percent) | 25% | |
Specified internal rate of return (as a percent) | 10% | |
Percentage of available cash distributed | 125% | |
All Dale Minerals III | ||
Investments | ||
Ownership percentage by limited partners | 13.90% |
VARIABLE INTEREST ENTITIES - In
VARIABLE INTEREST ENTITIES - Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 21, 2022 | Apr. 05, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 02, 2022 | |
Investments | |||||
Purchase of equity method investment | $ 20,110 | ||||
Francis Renewable Energy | |||||
Investments | |||||
Funding commitment | $ 50,000 | ||||
Purchase of equity method investment | $ 20,000 | $ 20,000 | |||
Francis Renewable Energy | Francis Renewable Energy | |||||
Investments | |||||
Ownership interest in VIE (as a percent) | 15.40% | ||||
NGP ETP | |||||
Investments | |||||
Funding commitment | $ 25,000 | ||||
Purchase of equity method investment | $ 100 | $ 110 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 21, 2022 | Apr. 29, 2022 | Apr. 05, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investments | |||||||
Beginning balance | $ 26,325 | ||||||
Contributions | 20,110 | ||||||
Equity method investment income | $ 1,585 | $ 341 | 2,468 | $ 403 | |||
Ending balance | 46,388 | 46,388 | |||||
Payment to acquire investment | 32,639 | ||||||
All Dale Minerals III | |||||||
Investments | |||||||
Beginning balance | 26,194 | 26,907 | 26,325 | 27,268 | |||
Equity method investment income | 1,585 | 341 | 2,468 | 403 | |||
Distributions received | (1,501) | (974) | (2,515) | (1,397) | |||
Ending balance | 26,278 | $ 26,274 | 26,278 | $ 26,274 | |||
Francis Renewable Energy | |||||||
Investments | |||||||
Contributions | $ 20,000 | 20,000 | |||||
Ending balance | 20,000 | 20,000 | |||||
NGP ETP | |||||||
Investments | |||||||
Contributions | $ 100 | 110 | |||||
Ending balance | $ 110 | $ 110 | |||||
Infinitum Electric | |||||||
Investments | |||||||
Payment to acquire investment | $ 32,600 |
PARTNERS' CAPITAL - Distributio
PARTNERS' CAPITAL - Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Aug. 12, 2022 | May 13, 2022 | Feb. 14, 2022 | Nov. 12, 2021 | Aug. 13, 2021 | May 14, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
PARTNERS' CAPITAL | |||||||||
Quarterly distribution paid (in dollars per unit) | $ 0.4000 | $ 0.3500 | $ 0.2500 | $ 0.2000 | $ 0.1000 | $ 0.1000 | $ 1 | $ 0.4000 | |
Total Cash Distribution | $ 45,810 | $ 32,750 | $ 26,072 | $ 13,041 | $ 13,045 | $ 78,560 | $ 13,045 | $ 52,158 |
PARTNERS' CAPITAL - Narrative (
PARTNERS' CAPITAL - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 50 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | May 31, 2018 | |
Partners' capital | |||
Treasury units retired | $ 0 | ||
Limited Partners' Capital | |||
Partners' capital | |||
Repurchase and retire authorization | $ 100 | ||
Treasury units retired | $ 93.5 | ||
Number of units retired | 5,460,639 | ||
Repurchase price (in dollars per unit) | $ 17.12 | ||
Remaining authorized amount | $ 6.5 | $ 6.5 |
PARTNERS' CAPITAL - Change (Det
PARTNERS' CAPITAL - Change (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Increase (decrease) in Partners' Capital | ||||||
Balance at beginning of period | $ 1,233,393 | $ 1,226,069 | $ 1,099,906 | $ 1,072,267 | $ 1,226,069 | $ 1,072,267 |
Balance at beginning of period (in units) | 127,195,219 | 127,195,219 | ||||
Comprehensive income (loss): | ||||||
Net income | 161,801 | $ 36,942 | 44,165 | 24,826 | $ 198,743 | 68,991 |
Actuarially determined long-term liability adjustments | 794 | 790 | 2,231 | 2,231 | 1,584 | 4,462 |
COMPREHENSIVE INCOME | 162,595 | 37,732 | 46,396 | 27,057 | 200,327 | 73,453 |
Common unit-based compensation | 2,340 | 2,640 | 1,485 | 723 | ||
Distributions on deferred common unit-based compensation | (1,292) | (950) | (324) | |||
Distributions from consolidated company to noncontrolling interest | (325) | (298) | (222) | (141) | ||
Distributions to Partners | (44,518) | (31,800) | (12,721) | |||
Balance at end of period | $ 1,352,193 | 1,233,393 | 1,134,520 | 1,099,906 | $ 1,352,193 | 1,134,520 |
Balance at end of period (in units) | 127,195,219 | 127,195,219 | ||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Increase (decrease) in Partners' Capital | ||||||
Balance at beginning of period | $ (63,439) | (64,229) | (85,443) | (87,674) | $ (64,229) | (87,674) |
Comprehensive income (loss): | ||||||
Actuarially determined long-term liability adjustments | 794 | 790 | 2,231 | 2,231 | ||
Balance at end of period | (62,645) | (63,439) | (83,212) | (85,443) | (62,645) | (83,212) |
Noncontrolling Interest | ||||||
Increase (decrease) in Partners' Capital | ||||||
Balance at beginning of period | 11,107 | 11,115 | 11,313 | 11,376 | 11,115 | 11,376 |
Comprehensive income (loss): | ||||||
Net income | 323 | 290 | 130 | 78 | ||
Distributions from consolidated company to noncontrolling interest | (325) | (298) | (222) | (141) | ||
Balance at end of period | 11,105 | 11,107 | 11,221 | 11,313 | 11,105 | 11,221 |
Limited Partners' Capital | ||||||
Increase (decrease) in Partners' Capital | ||||||
Balance at beginning of period | $ 1,285,725 | $ 1,279,183 | $ 1,174,036 | $ 1,148,565 | $ 1,279,183 | $ 1,148,565 |
Balance at beginning of period (in units) | 127,195,219 | 127,195,219 | 127,195,219 | 127,195,219 | 127,195,219 | 127,195,219 |
Comprehensive income (loss): | ||||||
Net income | $ 161,478 | $ 36,652 | $ 44,035 | $ 24,748 | ||
Common unit-based compensation | 2,340 | 2,640 | 1,485 | 723 | ||
Distributions on deferred common unit-based compensation | (1,292) | (950) | (324) | |||
Distributions to Partners | (44,518) | (31,800) | (12,721) | |||
Balance at end of period | $ 1,403,733 | $ 1,285,725 | $ 1,206,511 | $ 1,174,036 | $ 1,403,733 | $ 1,206,511 |
Balance at end of period (in units) | 127,195,219 | 127,195,219 | 127,195,219 | 127,195,219 | 127,195,219 | 127,195,219 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of revenues | ||||
Revenues | $ 616,501 | $ 362,443 | $ 1,077,364 | $ 681,065 |
Illinois Basin | ||||
Disaggregation of revenues | ||||
Revenues | 313,497 | 218,233 | 588,193 | 409,167 |
Appalachia | ||||
Disaggregation of revenues | ||||
Revenues | 255,682 | 120,723 | 400,981 | 229,342 |
Oil & Gas Royalties | ||||
Disaggregation of revenues | ||||
Revenues | 36,579 | 17,587 | 67,540 | 31,607 |
Coal Royalties | ||||
Disaggregation of revenues | ||||
Revenues | 14,525 | 11,653 | 29,692 | 22,954 |
Other, Corporate and Elimination | ||||
Disaggregation of revenues | ||||
Revenues | (3,782) | (5,753) | (9,042) | (12,005) |
Coal sales | ||||
Disaggregation of revenues | ||||
Revenues | 531,807 | 325,974 | 920,167 | 613,461 |
Coal sales | Illinois Basin | ||||
Disaggregation of revenues | ||||
Revenues | 290,389 | 210,157 | 544,294 | 392,798 |
Coal sales | Appalachia | ||||
Disaggregation of revenues | ||||
Revenues | 241,418 | 115,817 | 375,873 | 220,663 |
Oil & gas royalties | ||||
Disaggregation of revenues | ||||
Revenues | 35,927 | 17,114 | 66,854 | 31,113 |
Oil & gas royalties | Oil & Gas Royalties | ||||
Disaggregation of revenues | ||||
Revenues | 35,927 | 17,114 | 66,854 | 31,113 |
Coal royalties | Coal Royalties | ||||
Disaggregation of revenues | ||||
Revenues | 14,525 | 11,653 | 29,692 | 22,954 |
Coal royalties | Other, Corporate and Elimination | ||||
Disaggregation of revenues | ||||
Revenues | (14,525) | (11,653) | (29,692) | (22,954) |
Transportation | ||||
Disaggregation of revenues | ||||
Revenues | 35,385 | 12,058 | 64,757 | 23,126 |
Transportation | Illinois Basin | ||||
Disaggregation of revenues | ||||
Revenues | 21,449 | 7,434 | 40,340 | 15,114 |
Transportation | Appalachia | ||||
Disaggregation of revenues | ||||
Revenues | 13,936 | 4,624 | 24,417 | 8,012 |
Other revenues | ||||
Disaggregation of revenues | ||||
Revenues | 13,382 | 7,297 | 25,586 | 13,365 |
Other revenues | Illinois Basin | ||||
Disaggregation of revenues | ||||
Revenues | 1,659 | 642 | 3,559 | 1,255 |
Other revenues | Appalachia | ||||
Disaggregation of revenues | ||||
Revenues | 328 | 282 | 691 | 667 |
Other revenues | Oil & Gas Royalties | ||||
Disaggregation of revenues | ||||
Revenues | 652 | 473 | 686 | 494 |
Other revenues | Other, Corporate and Elimination | ||||
Disaggregation of revenues | ||||
Revenues | $ 10,743 | $ 5,900 | $ 20,650 | $ 10,949 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Supply contracts (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 3,026,931 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 1,032,665 |
Expected timing of satisfaction period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 1,064,902 |
Expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 597,917 |
Expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 331,447 |
Expected timing of satisfaction period | 1 year |
Illinois Basin | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 2,032,271 |
Illinois Basin | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 650,837 |
Expected timing of satisfaction period | 6 months |
Illinois Basin | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 729,307 |
Expected timing of satisfaction period | 1 year |
Illinois Basin | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 361,381 |
Expected timing of satisfaction period | 1 year |
Illinois Basin | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 290,746 |
Expected timing of satisfaction period | 1 year |
Appalachia | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 994,660 |
Appalachia | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 381,828 |
Expected timing of satisfaction period | 6 months |
Appalachia | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 335,595 |
Expected timing of satisfaction period | 1 year |
Appalachia | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 236,536 |
Expected timing of satisfaction period | 1 year |
Appalachia | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Performance obligations unsatisfied or partially unsatisfied | |
Total | $ 40,701 |
Expected timing of satisfaction period | 1 year |
EARNINGS PER LIMITED PARTNER _3
EARNINGS PER LIMITED PARTNER UNIT - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
EARNINGS PER LIMITED PARTNER UNIT | ||||
Net income attributable to ARLP | $ 161,478 | $ 44,035 | $ 198,130 | $ 68,783 |
Distributions to participating securities | (1,720) | (401) | (3,272) | (619) |
Undistributed earnings attributable to participating securities | (3,645) | (825) | (3,245) | (934) |
Net income attributable to ARLP available to limited partners | $ 156,113 | $ 42,809 | $ 191,613 | $ 67,230 |
Weighted-average limited partner units outstanding - basic (in units) | 127,195,219 | 127,195,219 | 127,195,219 | 127,195,219 |
Weighted-average limited partner units outstanding - diluted (in units) | 127,195,000 | 127,195,000 | 127,195,000 | 127,195,000 |
Earnings per limited partner unit - basic (in dollars per unit) | $ 1.23 | $ 0.34 | $ 1.51 | $ 0.53 |
Earnings per limited partner unit - diluted (in dollars per unit) | $ 1.23 | $ 0.34 | $ 1.51 | $ 0.53 |
Anti-dilutive under the treasury stock method (in units) | 3,529,000 | 1,525,000 | 3,289,000 | 1,397,000 |
WORKERS' COMPENSATION AND PNE_3
WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in the workers' compensation liability | ||||||
Beginning balance | $ 53,206 | $ 54,233 | $ 53,448 | $ 54,739 | $ 54,739 | |
Accruals increase | 2,271 | 1,565 | 4,546 | 3,237 | ||
Payments | (3,278) | (2,565) | (6,082) | (4,975) | ||
Interest accretion | 287 | 231 | 574 | 463 | ||
Valuation gain | (5,265) | (1,405) | (5,265) | (1,405) | ||
Ending balance | 47,221 | $ 52,059 | $ 47,221 | $ 52,059 | $ 53,448 | $ 54,739 |
Estimated present value of future obligations and other information | ||||||
Workers' compensation discount rate | 4.22% | 2.34% | 2.41% | 1.95% | ||
Other long-term assets | ||||||
Estimated present value of future obligations and other information | ||||||
Receivables for traumatic injury claims | $ 5,700 | $ 5,700 |
WORKERS' COMPENSATION AND PNE_4
WORKERS' COMPENSATION AND PNEUMOCONIOSIS - Periodic Benefit Cost (Details) - Pneumoconiosis benefits - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Black lung benefits: | ||||
Service cost | $ 954 | $ 989 | $ 1,901 | $ 2,020 |
Interest cost | $ 749 | $ 637 | $ 1,496 | $ 1,273 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Net amortization | $ 259 | $ 1,043 | $ 519 | $ 2,086 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Net periodic benefit cost | $ 1,962 | $ 2,669 | $ 3,916 | $ 5,379 |
COMMON UNIT-BASED COMPENSATIO_3
COMMON UNIT-BASED COMPENSATION PLANS - LTIP Grants (Details) - ARLP LTIP - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Number of units | ||
Balance at the beginning of the period (in units) | 3,130,475 | |
Granted (in units) | 687,719 | |
Forfeited (in units) | (165,224) | |
Balance at the end of the period (in units) | 3,652,970 | |
Weighted average grant date fair value per unit | ||
Balance at the beginning of the period (in dollars per unit) | $ 5.59 | |
Granted (in dollars per unit) | 13.34 | |
Forfeited (in dollars per unit) | 6.72 | |
Balance at the end of the period (in dollars per unit) | $ 7 | |
Intrinsic value (in dollars) | ||
Intrinsic value of outstanding grants (in dollars) | $ 66,594 | $ 39,569 |
$9.62 minimum-value guarantee | ||
Other information | ||
Guaranteed minimum (in dollars per unit) | $ 9.62 | |
$6.41 minimum-value guarantee | ||
Other information | ||
Guaranteed minimum (in dollars per unit) | $ 6.41 |
COMMON UNIT-BASED COMPENSATIO_4
COMMON UNIT-BASED COMPENSATION PLANS - LTIP Other (Details) - ARLP LTIP - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other information | ||||
Unit-based compensation expense | $ 2.1 | $ 1.4 | $ 4.4 | $ 2.1 |
Total unit-based obligation recorded | 11 | 11 | ||
Unrecognized compensation expense (in dollars) | $ 14.5 | $ 14.5 | ||
Weighted-average period for recognition of expense | 1 year 3 months 18 days |
COMMON UNIT-BASED COMPENSATIO_5
COMMON UNIT-BASED COMPENSATION PLANS - SERP and Directors Comp (Details) - SERP and Deferred Compensation Plans - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Other information | |||||
Unit-based compensation expense | $ 300 | $ 100 | $ 600 | $ 200 | |
Total unit-based obligation recorded | $ 14,000 | $ 14,000 | |||
Phantom Share Units (PSUs) | |||||
Number of units | |||||
Balance at the beginning of the period (in units) | 668,698 | ||||
Granted (in units) | 25,359 | ||||
Balance at the end of the period (in units) | 694,057 | 694,057 | |||
Weighted average grant date fair value per unit | |||||
Balance at the beginning of the period (in dollars per unit) | $ 20.37 | ||||
Granted (in dollars per unit) | 15.80 | ||||
Balance at the end of the period (in dollars per unit) | $ 20.20 | $ 20.20 | |||
Intrinsic value of outstanding grants (in dollars) | $ 12,653 | $ 12,653 | $ 8,452 |
COMPONENTS OF PENSION PLAN NE_3
COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS (Details) - Defined benefit pension plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Components of net periodic benefit cost: | ||||
Interest cost | $ 936 | $ 860 | $ 1,868 | $ 1,720 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Expected return on plan assets | $ (1,664) | $ (1,671) | $ (3,329) | $ (3,342) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Amortization of prior service cost | $ 46 | $ 46 | $ 93 | $ 93 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Amortization of net loss | $ 489 | $ 1,142 | $ 972 | $ 2,283 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Net periodic benefit cost | $ (193) | $ 377 | $ (396) | $ 754 |
SEGMENT INFORMATION - General (
SEGMENT INFORMATION - General (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
SEGMENT INFORMATION | |
Number of reportable segments | 4 |
Number Of Coal Reportable Segments | 2 |
Number Of Mining Complex | 7 |
SEGMENT INFORMATION - Segment R
SEGMENT INFORMATION - Segment Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Reportable segment results | |||||
Revenues | $ 616,501 | $ 362,443 | $ 1,077,364 | $ 681,065 | |
Segment Adjusted EBITDA Expense | 316,074 | 214,504 | 577,254 | 412,221 | |
Segment Adjusted EBITDA | 266,304 | 136,092 | 437,208 | 245,913 | |
Total assets | 2,333,191 | 2,115,513 | 2,333,191 | 2,115,513 | $ 2,159,406 |
Capital expenditures | 62,829 | 24,189 | 121,982 | 55,626 | |
Illinois Basin | |||||
Reportable segment results | |||||
Revenues | 313,497 | 218,233 | 588,193 | 409,167 | |
Segment Adjusted EBITDA Expense | 194,697 | 140,176 | 372,286 | 265,757 | |
Segment Adjusted EBITDA | 97,352 | 70,623 | 175,567 | 128,296 | |
Total assets | 748,291 | 726,555 | 748,291 | 726,555 | |
Capital expenditures | 35,343 | 12,515 | 71,890 | 28,916 | |
Appalachia | |||||
Reportable segment results | |||||
Revenues | 255,682 | 120,723 | 400,981 | 229,342 | |
Segment Adjusted EBITDA Expense | 117,369 | 74,456 | 201,084 | 148,182 | |
Segment Adjusted EBITDA | 124,377 | 41,641 | 175,480 | 73,147 | |
Total assets | 457,724 | 425,574 | 457,724 | 425,574 | |
Capital expenditures | 22,491 | 10,382 | 40,836 | 22,048 | |
Oil & Gas Royalties | |||||
Reportable segment results | |||||
Revenues | 36,579 | 17,587 | 67,540 | 31,607 | |
Segment Adjusted EBITDA Expense | 3,234 | 2,419 | 6,235 | 4,477 | |
Segment Adjusted EBITDA | 34,609 | 15,379 | 63,161 | 27,325 | |
Total assets | 667,278 | 604,355 | 667,278 | 604,355 | |
Coal Royalties | |||||
Reportable segment results | |||||
Revenues | 14,525 | 11,653 | 29,692 | 22,954 | |
Segment Adjusted EBITDA Expense | 5,398 | 4,871 | 10,217 | 8,899 | |
Segment Adjusted EBITDA | 9,127 | 6,782 | 19,475 | 14,055 | |
Total assets | 288,509 | 292,134 | 288,509 | 292,134 | |
Other, Corporate and Elimination | |||||
Reportable segment results | |||||
Revenues | (3,782) | (5,753) | (9,042) | (12,005) | |
Segment Adjusted EBITDA Expense | (4,624) | (7,418) | (12,568) | (15,094) | |
Segment Adjusted EBITDA | 839 | 1,667 | 3,525 | 3,090 | |
Total assets | 171,389 | 66,895 | 171,389 | 66,895 | |
Capital expenditures | 4,995 | 1,292 | 9,256 | 4,662 | |
Operating segments | |||||
Reportable segment results | |||||
Revenues | 616,501 | 362,443 | 1,077,364 | 681,065 | |
Operating segments | Illinois Basin | |||||
Reportable segment results | |||||
Revenues | 313,497 | 218,233 | 588,193 | 409,167 | |
Operating segments | Appalachia | |||||
Reportable segment results | |||||
Revenues | 255,682 | 120,723 | 400,981 | 229,342 | |
Operating segments | Oil & Gas Royalties | |||||
Reportable segment results | |||||
Revenues | 36,579 | 17,587 | 67,540 | 31,607 | |
Operating segments | Other, Corporate and Elimination | |||||
Reportable segment results | |||||
Revenues | 10,743 | 5,900 | 20,650 | 10,949 | |
Elimination | Coal Royalties | |||||
Reportable segment results | |||||
Revenues | 14,525 | 11,653 | 29,692 | 22,954 | |
Elimination | Other, Corporate and Elimination | |||||
Reportable segment results | |||||
Revenues | $ (14,525) | $ (11,653) | $ (29,692) | $ (22,954) |
SEGMENT INFORMATION - EBITDA Ex
SEGMENT INFORMATION - EBITDA Expense Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of consolidated Segment Adjusted EBITDA Expense | ||||
Segment Adjusted EBITDA Expense | $ 316,074 | $ 214,504 | $ 577,254 | $ 412,221 |
Outside coal purchases | (151) | (114) | (151) | (114) |
Other income (expense) | 579 | (1,351) | 1,145 | (2,548) |
Product | ||||
Reconciliation of consolidated Segment Adjusted EBITDA Expense | ||||
Operating expenses (excluding depreciation, depletion and amortization) | $ 316,502 | $ 213,039 | $ 578,248 | $ 409,559 |
SEGMENT INFORMATION - EBITDA Re
SEGMENT INFORMATION - EBITDA Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of consolidated Segment Adjusted EBITDA to net income | ||||||
Consolidated Segment Adjusted EBITDA | $ 266,304 | $ 136,092 | $ 437,208 | $ 245,913 | ||
General and administrative | (22,457) | (17,492) | (41,053) | (32,996) | ||
Depreciation, depletion and amortization | (66,734) | (64,733) | (130,048) | (123,935) | ||
Interest expense, net | (9,304) | (9,827) | (18,931) | (20,206) | ||
Income tax (expense) benefit | (6,331) | (5) | (49,046) | 7 | ||
NET INCOME ATTRIBUTABLE TO ARLP | 161,478 | 44,035 | 198,130 | 68,783 | ||
Noncontrolling interest | 323 | 130 | 613 | 208 | ||
NET INCOME | $ 161,801 | $ 36,942 | $ 44,165 | $ 24,826 | $ 198,743 | $ 68,991 |