ITEM 1. FINANCIAL STATEMENTS
​
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except unit data)
(Unaudited)
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | September 30, | ​ | December 31, | ​ |
| ​ | ​ | 2019 | 2018 | ​ |
| ASSETS | ​ | ​ | ​ | ​ | ​ |
| CURRENT ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Cash and cash equivalents | ​ | $ | 31,817 | ​ | $ | 244,150 | ​ |
| Trade receivables | ​ | 182,094 | ​ | 174,914 | ​ |
| Other receivables | ​ | 524 | ​ | 395 | ​ |
| Inventories, net | ​ | 114,100 | ​ | 59,206 | ​ |
| Advance royalties, net | ​ | 1,229 | ​ | 1,274 | ​ |
| Prepaid expenses and other assets | 11,600 | 20,747 | ​ |
| Total current assets | ​ | 341,364 | ​ | 500,686 | ​ |
| PROPERTY, PLANT AND EQUIPMENT: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Property, plant and equipment, at cost | ​ | 3,673,436 | ​ | 2,925,808 | ​ |
| Less accumulated depreciation, depletion and amortization | ​ | ( 1,647,933 ) | ​ | ( 1,513,450 ) | ​ |
| Total property, plant and equipment, net | ​ | 2,025,503 | ​ | 1,412,358 | ​ |
| OTHER ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Advance royalties, net | ​ | 51,863 | ​ | 42,923 | ​ |
| Equity method investments | ​ | 28,721 | ​ | 161,309 | ​ |
| Equity securities | ​ | ​ | — | ​ | 122,094 | ​ |
| Goodwill | ​ | ​ | 136,399 | ​ | ​ | 136,399 | ​ |
| Operating lease right-of-use assets | ​ | ​ | 18,990 | ​ | ​ | — | ​ |
| Other long-term assets | ​ | 24,249 | ​ | 18,979 | ​ |
| Total other assets | ​ | 260,222 | ​ | 481,704 | ​ |
| TOTAL ASSETS | ​ | $ | 2,627,089 | ​ | $ | 2,394,748 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| LIABILITIES AND PARTNERS' CAPITAL | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| CURRENT LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Accounts payable | ​ | $ | 91,445 | ​ | $ | 96,397 | ​ |
| Accrued taxes other than income taxes | ​ | 17,611 | ​ | 16,762 | ​ |
| Accrued payroll and related expenses | ​ | 48,535 | ​ | 43,113 | ​ |
| Accrued interest | ​ | 13,175 | ​ | 5,022 | ​ |
| Workers' compensation and pneumoconiosis benefits | ​ | 11,181 | ​ | 11,137 | ​ |
| Current finance lease obligations | ​ | 31,507 | ​ | 46,722 | ​ |
| Current operating lease obligations | ​ | 4,431 | ​ | — | ​ |
| Other current liabilities | ​ | 22,139 | ​ | 19,718 | ​ |
| Current maturities, long-term debt, net | ​ | 69,694 | ​ | 92,000 | ​ |
| Total current liabilities | ​ | 309,718 | ​ | 330,871 | ​ |
| LONG-TERM LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Long-term debt, excluding current maturities, net | ​ | 637,090 | ​ | 564,004 | ​ |
| Pneumoconiosis benefits | ​ | 74,188 | ​ | 68,828 | ​ |
| Accrued pension benefit | ​ | 38,583 | ​ | 43,135 | ​ |
| Workers' compensation | ​ | 45,645 | ​ | 41,669 | ​ |
| Asset retirement obligations | ​ | 132,436 | ​ | 127,655 | ​ |
| Long-term finance lease obligations | ​ | 2,388 | ​ | 10,595 | ​ |
| Long-term operating lease obligations | ​ | 14,624 | ​ | — | ​ |
| Other liabilities | ​ | 21,126 | ​ | 20,304 | ​ |
| Total long-term liabilities | ​ | 966,080 | ​ | 876,190 | ​ |
| Total liabilities | ​ | 1,275,798 | ​ | 1,207,061 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| PARTNERS' CAPITAL: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ARLP Partners' Capital: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Limited Partners - Common Unitholders 128,391,191 and 128,095,511 units outstanding, respectively | ​ | 1,389,959 | ​ | 1,229,268 | ​ |
| Accumulated other comprehensive loss | ​ | ( 50,692 ) | ​ | ( 46,871 ) | ​ |
| Total ARLP Partners' Capital | ​ | 1,339,267 | ​ | 1,182,397 | ​ |
| Noncontrolling interest | ​ | ​ | 12,024 | ​ | ​ | 5,290 | ​ |
| Total Partners' Capital | ​ | ​ | 1,351,291 | ​ | ​ | 1,187,687 | ​ |
| TOTAL LIABILITIES AND PARTNERS' CAPITAL | ​ | $ | 2,627,089 | ​ | $ | 2,394,748 | ​ |

​
See notes to condensed consolidated financial statements.
1
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended | ​ | Nine Months Ended | ​ |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | 2019 | 2018 | 2019 | 2018 |
| SALES AND OPERATING REVENUES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal sales | ​ | $ | 420,005 | ​ | $ | 460,330 | ​ | $ | 1,357,331 | ​ | $ | 1,359,865 | ​ |
| Oil & gas royalties | ​ | ​ | 13,969 | ​ | ​ | — | ​ | ​ | 36,254 | ​ | ​ | — | ​ |
| Transportation revenues | ​ | 20,024 | ​ | 28,697 | ​ | 82,892 | ​ | 76,014 | ​ |
| Other revenues | ​ | 10,728 | ​ | 8,731 | ​ | 31,905 | ​ | 35,138 | ​ |
| Total revenues | ​ | 464,726 | ​ | 497,758 | ​ | 1,508,382 | ​ | 1,471,017 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Operating expenses (excluding depreciation, depletion and amortization) | ​ | 278,254 | ​ | 308,404 | ​ | 895,255 | ​ | 896,843 | ​ |
| Transportation expenses | ​ | 20,024 | ​ | 28,697 | ​ | 82,892 | ​ | 76,014 | ​ |
| Outside coal purchases | ​ | 10,599 | ​ | — | ​ | 15,910 | ​ | 1,442 | ​ |
| General and administrative | ​ | 17,885 | ​ | 15,836 | ​ | 55,218 | ​ | 49,513 | ​ |
| Depreciation, depletion and amortization | ​ | 72,348 | ​ | 70,196 | ​ | 220,400 | ​ | 204,194 | ​ |
| Settlement gain | ​ | ​ | — | ​ | ​ | — | ​ | — | ​ | ( 80,000 ) | ​ |
| Asset impairment | ​ | 15,190 | ​ | — | ​ | 15,190 | ​ | — | ​ |
| Total operating expenses | ​ | 414,300 | ​ | 423,133 | ​ | 1,284,865 | ​ | 1,148,006 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| INCOME FROM OPERATIONS | ​ | 50,426 | ​ | 74,625 | ​ | 223,517 | ​ | 323,011 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Interest expense (net of interest capitalized for the three and nine months ended September 30, 2019 and 2018 of $ 298 , $ 330 , $ 790 and $ 891 , respectively) | ​ | ( 11,698 ) | ​ | ( 9,840 ) | ​ | ( 33,831 ) | ​ | ( 30,653 ) | ​ |
| Interest income | ​ | 92 | ​ | 32 | ​ | 321 | ​ | 121 | ​ |
| Equity method investment income | ​ | 659 | ​ | 5,980 | ​ | 1,533 | ​ | 14,555 | ​ |
| Equity securities income | ​ | — | ​ | 3,989 | ​ | 12,906 | ​ | 11,567 | ​ |
| Acquisition gain | ​ | ​ | — | ​ | — | ​ | 177,043 | ​ | — | ​ |
| Other expense | ​ | ( 228 ) | ​ | ( 812 ) | ​ | ( 370 ) | ​ | ( 2,201 ) | ​ |
| INCOME BEFORE INCOME TAXES | ​ | 39,251 | ​ | 73,974 | ​ | 381,119 | ​ | 316,400 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| INCOME TAX EXPENSE (BENEFIT) | ​ | 50 | ​ | 5 | ​ | 130 | ​ | ( 2 ) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| NET INCOME | ​ | ​ | 39,201 | ​ | ​ | 73,969 | ​ | ​ | 380,989 | ​ | ​ | 316,402 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | ​ | ​ | ( 117 ) | ​ | ( 236 ) | ​ | ( 7,407 ) | ​ | ( 571 ) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| NET INCOME ATTRIBUTABLE TO ARLP | ​ | $ | 39,084 | ​ | $ | 73,733 | ​ | $ | 373,582 | ​ | $ | 315,831 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| NET INCOME ATTRIBUTABLE TO ARLP | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| GENERAL PARTNER | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 1,560 | ​ |
| LIMITED PARTNERS | ​ | $ | 39,084 | ​ | $ | 73,733 | ​ | $ | 373,582 | ​ | $ | 314,271 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| EARNINGS PER LIMITED PARTNER UNIT - BASIC AND DILUTED | ​ | $ | 0.30 | ​ | $ | 0.55 | ​ | $ | 2.86 | ​ | $ | 2.35 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING – BASIC AND DILUTED | ​ | 128,391,191 | ​ | 131,169,538 | ​ | 128,311,609 | ​ | 131,090,838 | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended | ​ | Nine Months Ended | ​ |
| ​ | September 30, | ​ | September 30, | ​ |
| ​ | ​ | 2019 | 2018 | 2019 | 2018 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| NET INCOME | ​ | $ | 39,201 | ​ | $ | 73,969 | ​ | $ | 380,989 | ​ | $ | 316,402 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| OTHER COMPREHENSIVE INCOME (LOSS): | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Defined benefit pension plan | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Amortization of prior service cost (1) | ​ | ​ | 46 | ​ | ​ | 46 | ​ | ​ | 139 | ​ | ​ | 140 | ​ |
| Amortization of net actuarial loss (1) | ​ | 980 | ​ | 767 | ​ | 2,941 | ​ | 2,705 | ​ |
| Total defined benefit pension plan adjustments | ​ | 1,026 | ​ | 813 | ​ | 3,080 | ​ | 2,845 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Pneumoconiosis benefits | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net actuarial loss | ​ | — | ​ | — | ​ | ( 3,465 ) | ​ | — | ​ |
| Amortization of net actuarial loss (gain) (1) | ​ | ( 1,145 ) | ​ | 1 | ​ | ( 3,436 ) | ​ | 2 | ​ |
| Total pneumoconiosis benefits adjustments | ​ | ( 1,145 ) | ​ | 1 | ​ | ( 6,901 ) | ​ | 2 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| OTHER COMPREHENSIVE INCOME (LOSS) | ​ | ( 119 ) | ​ | 814 | ​ | ( 3,821 ) | ​ | 2,847 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| COMPREHENSIVE INCOME | ​ | ​ | 39,082 | ​ | ​ | 74,783 | ​ | ​ | 377,168 | ​ | ​ | 319,249 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Less: Comprehensive income attributable to noncontrolling interest | ​ | ​ | ( 117 ) | ​ | ​ | ( 236 ) | ​ | ​ | ( 7,407 ) | ​ | ​ | ( 571 ) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| COMPREHENSIVE INCOME ATTRIBUTABLE TO ARLP | ​ | $ | 38,965 | ​ | $ | 74,547 | ​ | $ | 369,761 | ​ | $ | 318,678 | ​ |
| (1) | Amortization of prior service cost and net actuarial gain or loss is included in the computation of net periodic benefit cost (see Notes 15 and 17 for additional details). |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Nine Months Ended | ​ |
| ​ | ​ | September 30, | ​ |
| ​ | 2019 | 2018 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| CASH FLOWS FROM OPERATING ACTIVITIES | ​ | $ | 408,418 | ​ | $ | 579,267 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Property, plant and equipment: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Capital expenditures | ​ | ( 241,142 ) | ​ | ( 184,408 ) | ​ |
| Increase in accounts payable and accrued liabilities | ​ | 319 | ​ | 673 | ​ |
| Proceeds from sale of property, plant and equipment | ​ | 892 | ​ | 2,361 | ​ |
| Contributions to equity method investments | ​ | — | ​ | ( 15,600 ) | ​ |
| Distributions received from investments in excess of cumulative earnings | ​ | ​ | 2,309 | ​ | 1,685 | ​ |
| Payments for acquisitions of businesses, net of cash acquired | ​ | ( 320,232 ) | ​ | — | ​ |
| Cash received from redemption of equity securities | ​ | ​ | 134,288 | ​ | — | ​ |
| Net cash used in investing activities | ​ | ( 423,566 ) | ​ | ( 195,289 ) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Borrowings under securitization facility | ​ | ​ | 153,500 | ​ | 182,600 | ​ |
| Payments under securitization facility | ​ | ​ | ( 179,000 ) | ​ | ( 255,000 ) | ​ |
| Proceeds from equipment financing | ​ | ​ | 10,000 | ​ | — | ​ |
| Payments on equipment financing | ​ | ​ | ( 1,021 ) | ​ | — | ​ |
| Borrowings under revolving credit facilities | ​ | 300,000 | ​ | 70,000 | ​ |
| Payments under revolving credit facilities | ​ | ( 235,000 ) | ​ | ( 100,000 ) | ​ |
| Payments on finance lease obligations | ​ | ( 23,270 ) | ​ | ( 22,106 ) | ​ |
| Payments for purchases of units under unit repurchase program | ​ | ​ | ( 5,251 ) | ​ | ( 21,070 ) | ​ |
| Net settlement of withholding taxes on issuance of units in deferred compensation plans | ​ | ( 7,817 ) | ​ | ( 2,081 ) | ​ |
| Cash contribution by General Partner | ​ | — | ​ | 41 | ​ |
| Cash contribution by affiliated entity | ​ | ​ | — | ​ | 2,142 | ​ |
| Cash obtained in Simplification Transactions | ​ | ​ | — | ​ | 1,139 | ​ |
| Distributions paid to Partners | ​ | ​ | ( 208,653 ) | ​ | ( 206,682 ) | ​ |
| Other | ​ | ( 673 ) | ​ | ( 1,362 ) | ​ |
| Net cash used in financing activities | ​ | ( 197,185 ) | ​ | ( 352,379 ) | ​ |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | ​ | ( 212,333 ) | ​ | 31,599 | ​ |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | ​ | 244,150 | ​ | 6,756 | ​ |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | ​ | $ | 31,817 | ​ | $ | 38,355 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| SUPPLEMENTAL CASH FLOW INFORMATION: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Cash paid for interest | ​ | $ | 23,931 | ​ | $ | 21,797 | ​ |
| Cash paid for income taxes | ​ | $ | — | ​ | $ | 34 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| SUPPLEMENTAL NON-CASH ACTIVITY: | ​ | ​ | ​ | ​ | ​ | ​ |
| Accounts payable for purchase of property, plant and equipment | ​ | $ | 14,904 | ​ | $ | 16,309 | ​ |
| Assets acquired by finance lease | ​ | $ | — | ​ | $ | 835 | ​ |
| Right-of-use assets acquired by operating lease | ​ | $ | 25,321 | ​ | $ | — | ​ |
| Market value of common units issued under deferred compensation plans before tax withholding requirements | ​ | $ | 17,415 | ​ | $ | 6,142 | ​ |
| Acquisition of businesses: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Fair value of assets assumed | ​ | $ | 629,475 | ​ | $ | — | ​ |
| Previously held equity-method investments | ​ | ​ | ( 307,322 ) | ​ | ​ | — | ​ |
| Cash paid, net of cash acquired | ​ | ​ | ( 320,232 ) | ​ | ​ | — | ​ |
| Fair value of liabilities assumed | ​ | $ | 1,921 | ​ | $ | — | ​ |

| ● | 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 "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 the coal mining operations of Alliance Resource Operating Partners, L.P. |

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 of 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, 2018. ​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, 2019. ​ 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.​ Leases ​We lease buildings and equipment under operating lease agreements that provide for the payment of minimum rentals. We also have noncancelable lease agreements with third parties for land and equipment under finance lease obligations. Some of our arrangements within these agreements have both lease and non-lease components, which are generally accounted for separately. We have elected a practical expedient to account for lease and non-lease components as a single lease component for leases of buildings and office equipment. Our leases have lease terms of one year to 20 years , some of which include automatic renewals up to ten years which are likely to be exercised, and some of which include options to terminate the lease within one year. We also hold numerous mineral reserve leases with both related parties as well as third parties, none of which are accounted for as an operating lease or as a finance lease. ​We review each agreement to determine if an arrangement within the agreement contains a lease at the inception of an arrangement. Once an arrangement is determined to contain either an operating or finance lease with a term greater than 12 months, we recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term based on the present value of lease payments over the lease term. The lease term includes all noncancelable periods defined in the lease as well as periods covered by options to extend the lease that we are reasonably certain to exercise. As an implicit borrowing rate cannot be determined under most of our leases, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.​Expenses related to leases determined to be operating leases will be recognized on a straight-line basis over the lease term including any reasonably assured renewal periods, while those determined to be finance leases will be recognized following a front-loaded expense profile in which interest and amortization are presented separately in the income statement. The determination of whether a lease is accounted for as a finance lease or an operating lease requires management to make estimates primarily about the fair value of the asset and its estimated economic useful life. ​ 2.NEW ACCOUNTING STANDARDS ​New Accounting Standards Issued and Adopted​In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet and disclose key information about lease arrangements. Leases are now classified as either finance or operating, with the resulting classification affecting the pattern of expense recognition in the income statement. We elected to use the modified retrospective transition method which allows a cumulative effect adjustment on the balance sheet upon adoption. The adoption of the standard resulted in the recognition of approximately $ 25.0 million in additional net lease assets and respective lease liabilities as of January 1, 2019. ​As part of our transition there are a number of practical expedients available in the new standard. We elected a package of practical expedients that, among other things, allows us to not reassess the lease classification of expired or 6
| ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | As of August 2, 2019 | ​ |
| ​ | ​ | (in thousands) | ​ |
| ​ | ​ | ​ | ​ | ​ |
| Mineral interests in proved properties | ​ | $ | 55,619 | ​ |
| Mineral interests in unproved properties | ​ | ​ | 87,441 | ​ |
| Receivables | ​ | ​ | 1,867 | ​ |
| Net assets acquired | ​ | $ | 144,927 | ​ |

| ​ | ​ | ​ | ​ |
| ​ | Three Months Ended | ​ |
| ​ | September 30, | ​ |
| ​ | 2019 |
| ​ | (in thousands) |
| ​ | ​ | ​ | ​ |
| Revenue | $ | 1,136 | ​ |
| Net income | 460 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended | ​ | Nine Months Ended | ​ |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | 2019 | 2018 | 2019 | 2018 | ​ |
| ​ | ​ | (in thousands) | ​ |
| Total revenues | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| As reported | ​ | $ | 464,726 | ​ | $ | 497,758 | ​ | $ | 1,508,382 | ​ | $ | 1,471,017 | ​ |
| Pro forma | ​ | ​ | 465,296 | ​ | ​ | 499,449 | ​ | ​ | 1,512,953 | ​ | ​ | 1,475,575 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| As reported | ​ | $ | 39,201 | ​ | $ | 73,969 | ​ | $ | 380,989 | ​ | $ | 316,402 | ​ |
| Pro forma | ​ | ​ | 39,730 | ​ | ​ | 75,564 | ​ | ​ | 385,280 | ​ | ​ | 320,713 | ​ |
| ​ | ​ | ​ | ​ |
| ​ | ​ | As of January 3, 2019 |
| ​ | ​ | (in thousands) |
| ​ | ​ | ​ | ​ |
| Cash | ​ | $ | 176,205 |
| Previously held investments | ​ | ​ | 307,322 |
| Total | ​ | $ | 483,527 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Preliminary | ​ | Adjustments | ​ | Final | ​ |
| ​ | ​ | ​ | ​ | (in thousands) | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Cash and cash equivalents | ​ | $ | 900 | ​ | ​ | ​ | ​ | $ | 900 | ​ |
| Mineral interests in proved properties | ​ | ​ | 159,617 | ​ | ​ | 24,415 | ​ | ​ | 184,032 | ​ |
| Mineral interests in unproved properties | ​ | ​ | 314,084 | ​ | ​ | ( 22,894 ) | ​ | ​ | 291,190 | ​ |
| Receivables | ​ | ​ | 10,602 | ​ | ​ | ( 1,276 ) | ​ | ​ | 9,326 | ​ |
| Accounts payable | ​ | ​ | ( 1,921 ) | ​ | ​ | ​ | ​ | ​ | ( 1,921 ) | ​ |
| Net assets acquired | ​ | $ | 483,282 | ​ | ​ | ​ | ​ | $ | 483,527 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended | ​ | Nine Months Ended |
| ​ | September 30, | ​ | September 30, | ​ |
| ​ | 2019 | 2019 | ​ |
| ​ | (in thousands) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Revenue | $ | 13,042 | ​ | $ | 36,198 | ​ |
| Net income | 5,046 | ​ | 14,028 | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended | ​ | Nine Months Ended | ​ |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | 2018 | 2018 |
| ​ | ​ | (in thousands) | ​ |
| Total revenues | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| As reported | ​ | $ | 497,758 | ​ | $ | 1,471,017 | ​ |
| Pro forma | ​ | 508,186 | ​ | 1,498,080 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net income | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| As reported | ​ | $ | 73,969 | ​ | $ | 316,402 | ​ |
| Pro forma | ​ | 71,460 | ​ | 310,757 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | September 30, | ​ | December 31, | ​ |
| ​ | ​ | 2019 | 2018 |
| ​ | ​ | (in thousands) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal | ​ | $ | 76,483 | ​ | $ | 20,929 | ​ |
| Supplies (net of reserve for obsolescence of $ 5,564 and $ 5,453 , respectively) | ​ | 37,617 | ​ | 38,277 | ​ |
| Total inventories, net | ​ | $ | 114,100 | ​ | $ | 59,206 | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended | ​ | Nine Months Ended |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | ​ | 2019 | 2019 | ​ |
| ​ | ​ | (in thousands) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Finance lease cost: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Amortization of right-of-use assets | ​ | $ | 3,630 | ​ | $ | 12,647 | ​ |
| Interest on lease liabilities | ​ | 495 | ​ | 1,828 | ​ |
| Operating lease cost | ​ | 1,873 | ​ | 7,282 | ​ |
| Short-term lease cost | ​ | ​ | 84 | ​ | ​ | 380 | ​ |
| Variable lease cost | ​ | 334 | ​ | 1,009 | ​ |
| Total lease cost | ​ | $ | 6,416 | ​ | $ | 23,146 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended | ​ | Nine Months Ended |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | ​ | 2019 | 2019 | ​ |
| ​ | ​ | (in thousands) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Cash paid for amounts included in the measurement of lease liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Operating cash flows for operating leases | ​ | $ | 1,804 | ​ | $ | 7,095 | ​ |
| Operating cash flows for finance leases | ​ | $ | 495 | ​ | $ | 1,828 | ​ |
| Financing cash flows for finance leases | ​ | $ | 6,716 | ​ | $ | 23,270 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Right-of-use assets obtained in exchange for lease obligations: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Operating leases | ​ | $ | 142 | ​ | $ | 25,321 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | September 30, | ​ | December 31, | ​ |
| ​ | ​ | 2019 | 2018 |
| ​ | ​ | (in thousands) | ​ |
| Finance leases: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Property and equipment finance lease assets, gross | ​ | $ | 125,121 | ​ | $ | 141,019 | ​ |
| Accumulated depreciation | ​ | ( 72,371 ) | ​ | ( 74,576 ) | ​ |
| Property and equipment finance lease assets, net | ​ | $ | 52,750 | ​ | $ | 66,443 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | September 30, | ​ | ​ |
| ​ | ​ | 2019 | ​ |
| Weighted average remaining lease term | ​ | ​ | ​ | ​ | ​ |
| Operating leases | ​ | ​ | 12.4 years | ​ | ​ |
| Finance leases | ​ | ​ | 0.7 years | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ |
| Weighted average discount rate | ​ | ​ | ​ | ​ | ​ |
| Operating leases | ​ | ​ | 6.0 | % | ​ |
| Finance leases | ​ | 5.2 | % | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Operating leases | Finance leases | ​ |
| ​ | ​ | (in thousands) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 2019 | ​ | $ | 2,001 | ​ | $ | 23,558 | ​ |
| 2020 | ​ | ​ | 3,804 | ​ | ​ | 8,748 | ​ |
| 2021 | ​ | ​ | 2,252 | ​ | ​ | 913 | ​ |
| 2022 | ​ | ​ | 2,189 | ​ | ​ | 913 | ​ |
| 2023 | ​ | ​ | 2,012 | ​ | ​ | 140 | ​ |
| Thereafter | ​ | ​ | 15,122 | ​ | ​ | 560 | ​ |
| Total lease payments | ​ | ​ | 27,380 | ​ | ​ | 34,832 | ​ |
| Less imputed interest | ​ | ​ | ( 8,325 ) | ​ | ​ | ( 937 ) | ​ |
| Total | ​ | $ | 19,055 | ​ | $ | 33,895 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | September 30, 2019 | ​ | December 31, 2018 | ​ |
| ​ | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 |
| ​ | ​ | (in thousands) | ​ |
| Long-term debt | ​ | $ | — | ​ | $ | 709,694 | ​ | $ | — | ​ | $ | — | ​ | $ | 669,864 | ​ | $ | — | ​ |
| Total | ​ | $ | — | ​ | $ | 709,694 | ​ | $ | — | ​ | $ | — | ​ | $ | 669,864 | ​ | $ | — | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | Unamortized Discount and | ​ |
| ​ | ​ | Principal | ​ | Debt Issuance Costs | ​ |
| ​ | ​ | September 30, | ​ | December 31, | ​ | September 30, | ​ | December 31, | ​ |
| ​ | 2019 | 2018 | 2019 | 2018 |
| ​ | ​ | (in thousands) | ​ |
| Revolving credit facility | ​ | $ | 240,000 | ​ | $ | 175,000 | ​ | $ | ( 3,588 ) | ​ | $ | ( 5,203 ) | ​ |
| Senior notes | ​ | 400,000 | ​ | 400,000 | ​ | ( 5,107 ) | ​ | ( 5,793 ) | ​ |
| Securitization facility | ​ | ​ | 66,500 | ​ | ​ | 92,000 | ​ | ​ | — | ​ | ​ | — | ​ |
| Equipment financing | ​ | ​ | 8,979 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ |
| ​ | ​ | 715,479 | ​ | 667,000 | ​ | ( 8,695 ) | ​ | ( 10,996 ) | ​ |
| Less current maturities | ​ | ( 69,694 ) | ​ | ( 92,000 ) | ​ | — | ​ | — | ​ |
| Total long-term debt | ​ | $ | 645,785 | ​ | $ | 575,000 | ​ | $ | ( 8,695 ) | ​ | $ | ( 10,996 ) | ​ |

The Credit Agreement is guaranteed by all of the material direct and indirect subsidiaries of our Intermediate Partnership, and is secured by substantially all of the Intermediate Partnership's assets. Borrowings under the Revolving Credit Facility bear interest, at the option of the Intermediate Partnership, 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 4.43 % as of September 30, 2019. At September 30, 2019, we had $ 9.3 million of letters of credit outstanding with $ 245.5 million available for borrowing under the Revolving Credit Facility. We currently 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 our Intermediate Partnership and its subsidiaries including, among other things, restrictions on incurrence of additional indebtedness and liens, sale of assets, investments, mergers and consolidations and transactions with affiliates, in each case subject to various exceptions, and the payment of cash distributions by our Intermediate Partnership if such payment would result in a certain fixed charge coverage ratio (as defined in the Credit Agreement). 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 and (b) a cash flow to interest expense ratio of not less than 3.0 to 1.0, in each case, during the four most recently ended fiscal quarters. The debt to cash flow ratio and cash flow to interest expense ratio were 1.13 to 1.0 and 14.7 to 1.0, respectively, for the trailing twelve months ended September 30, 2019. We remain in compliance with the covenants of the Credit Agreement as of September 30, 2019. ​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. At any time prior to May 1, 2020, the issuers of the Senior Notes may redeem up to 35 % of the aggregate principal amount of the Senior Notes with the net cash proceeds of one or more equity offerings at a redemption price equal to 107.5 % of the principal amount redeemed, plus accrued and unpaid interest, if any, to the redemption date. The issuers of the Senior Notes may also redeem all or a part of the notes at any time on or after May 1, 2020, at redemption prices set forth in the indenture governing the Senior Notes. At any time prior to May 1, 2020, the issuers of the Senior Notes may redeem the Senior Notes at a redemption price equal to the principal amount of the Senior Notes plus a "make-whole" premium, plus accrued and unpaid interest, if any, to the redemption date. ​Accounts Receivable Securitization. On December 5, 2014, certain direct and indirect wholly owned subsidiaries of our Intermediate Partnership entered into a $ 100.0 million accounts receivable securitization facility ("Securitization Facility"). Under the Securitization Facility, certain subsidiaries sell trade receivables on an ongoing basis to our Intermediate Partnership, which then sells the trade receivables to AROP Funding, LLC ("AROP Funding"), a wholly owned bankruptcy-remote special purpose subsidiary of our Intermediate Partnership, which in turn borrows on a revolving basis up to $ 100.0 million secured by the trade receivables. After the sale, Alliance Coal, as servicer of the assets, collects the receivables on behalf of AROP Funding. The Securitization Facility bears interest based on a Eurodollar Rate. In January 2019, we extended the term of the Securitization Facility to January 2020. In October 2019, we extended the term from January 2020 to January 2021. At September 30, 2019, we had a $ 66.5 million outstanding balance under the Securitization Facility. ​Cavalier Credit Agreement. On October 6, 2015, Cavalier Minerals (see Note 10 – Variable Interest Entities) entered into a credit agreement (the "Cavalier Credit Agreement") with Mineral Lending, LLC ("Mineral Lending") for a $ 100.0 million line of credit (the "Cavalier Credit Facility"). The Cavalier Credit Facility terminated on October 6, 2019. During the term of the Cavalier Credit Facility, the commitment was reduced by any distributions received from Cavalier Minerals' investment in AllDale II. As of September 30, 2019, the commitment was $ 64.6 million. Mineral Lending is an entity owned by (a) Alliance Resource Holdings II, Inc. ("ARH II"), an entity owned by Mr. Craft and Kathleen S. Craft, (b) an entity owned by an individual who is an officer and director of ARH II ("ARH Officer") and (c) charitable foundations established by Mr. Craft and Kathleen S. Craft. We had no borrowings from the facility since its inception and there was no commitment fee under the facility. ​ 13
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Alliance | ​ | Bluegrass | ​ |
| ​ | ​ | Minerals | ​ | Minerals | ​ |
| ​ | ​ | (in thousands) | ​ |
| Contributions | ​ | $ | 143,112 | ​ | $ | 5,963 | ​ |
| Distributions | ​ | ​ | 67,271 | ​ | ​ | 2,802 | ​ |

| ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | September 30, | ​ |
| ​ | ​ | 2019 | ​ |
| Assets (liabilities): | (in thousands) |
| Cash and cash equivalents | ​ | $ | 2,353 | ​ |
| Trade receivables | ​ | 10,993 | ​ |
| Other receivables | ​ | — | ​ |
| Prepaid expenses and other assets | ​ | ​ | 30 | ​ |
| Total property, plant and equipment, net | ​ | 460,422 | ​ |
| Other long-term assets | ​ | — | ​ |
| Accounts payable | ​ | ​ | ( 410 ) | ​ |
| Accrued taxes other than income taxes | ​ | ( 111 ) | ​ |
| Other current liabilities | ​ | ( 17 ) | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended | ​ | Nine Months Ended | ​ |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | 2019 | 2018 | 2019 | 2018 | ​ |
| ​ | ​ | (in thousands) | ​ |
| Beginning balance | ​ | $ | 28,672 | ​ | $ | 25,126 | ​ | $ | 28,974 | ​ | $ | 14,182 | ​ |
| Contributions | ​ | ​ | — | ​ | ​ | 4,200 | ​ | ​ | — | ​ | ​ | 15,600 | ​ |
| Equity method investment income | ​ | ​ | 659 | ​ | ​ | 93 | ​ | ​ | 1,533 | ​ | ​ | 290 | ​ |
| Distributions received | ​ | ​ | ( 610 ) | ​ | ​ | ( 341 ) | ​ | ​ | ( 1,786 ) | ​ | ​ | ( 994 ) | ​ |
| Ending balance | ​ | $ | 28,721 | ​ | $ | 29,078 | ​ | $ | 28,721 | ​ | $ | 29,078 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Payment Date | Per Unit Cash Distribution | Total Cash Distribution |
| ​ | ​ | ​ | ​ | ​ | (in thousands) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| February 14, 2018 | ​ | $ | 0.5100 | ​ | $ | 68,396 | ​ |
| May 15, 2018 | ​ | ​ | 0.5150 | ​ | ​ | 69,047 | ​ |
| August 14, 2018 | ​ | ​ | 0.5200 | ​ | ​ | 69,239 | ​ |
| November 14, 2018 | ​ | ​ | 0.5250 | ​ | ​ | 69,220 | ​ |
| Total | ​ | $ | 2.0700 | ​ | $ | 275,902 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| February 14, 2019 | ​ | $ | 0.5300 | ​ | $ | 69,011 | ​ |
| May 15, 2019 | ​ | 0.5350 | ​ | ​ | 69,489 | ​ |
| August 14, 2019 | ​ | ​ | 0.5400 | ​ | ​ | 70,153 | ​ |
| November 14, 2019 (1) | ​ | ​ | 0.5400 | ​ | ​ | — | ​ |
| Total | ​ | $ | 2.1450 | ​ | $ | 208,653 | ​ |
| (1) | On October 28, 2019, we declared this quarterly distribution payable on November 14, 2019 to all unitholders of record as of November 7, 2019. |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | Accumulated | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Number of | ​ | Limited | ​ | Other | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Limited Partner | ​ | Partners' | ​ | Comprehensive | ​ | Noncontrolling | ​ | Total Partners’ | ​ |
| ​ | Units | Capital | Loss | Interest | Capital |
| ​ | ​ | (in thousands, except unit data) | ​ |
| Balance at January 1, 2019 | 128,095,511 | ​ | $ | 1,229,268 | ​ | $ | ( 46,871 ) | ​ | $ | 5,290 | ​ | $ | 1,187,687 | ​ |
| Comprehensive income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net income | — | ​ | 276,428 | ​ | — | ​ | ​ | 7,176 | 283,604 | ​ |
| Actuarially determined long-term liability adjustments | — | ​ | — | ​ | ( 3,584 ) | ​ | — | ( 3,584 ) | ​ |
| Total comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 280,020 | ​ |
| Settlement of deferred compensation plans | ​ | 596,650 | ​ | ​ | ( 7,817 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 7,817 ) | ​ |
| Purchase of units under unit repurchase program | ​ | ( 300,970 ) | ​ | ​ | ( 5,251 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 5,251 ) | ​ |
| Common unit-based compensation | — | ​ | 2,743 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,743 | ​ |
| Distributions on deferred common unit-based compensation | — | ​ | ( 1,280 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 1,280 ) | ​ |
| Distributions from consolidated company to noncontrolling interest | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 262 ) | ​ | ​ | ( 262 ) | ​ |
| Distributions to Partners | — | ​ | ​ | ( 67,731 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 67,731 ) | ​ |
| Balance at March 31, 2019 | 128,391,191 | ​ | ​ | 1,426,360 | ​ | ​ | ( 50,455 ) | ​ | ​ | 12,204 | ​ | ​ | 1,388,109 | ​ |
| Comprehensive income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net income | — | ​ | 58,070 | ​ | — | ​ | ​ | 114 | 58,184 | ​ |
| Actuarially determined long-term liability adjustments | — | ​ | — | ​ | ( 118 ) | ​ | — | ( 118 ) | ​ |
| Total comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 58,066 | ​ |
| Common unit-based compensation | — | ​ | 3,021 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 3,021 | ​ |
| Distributions on deferred common unit-based compensation | — | ​ | ( 799 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 799 ) | ​ |
| Distributions from consolidated company to noncontrolling interest | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 228 ) | ​ | ​ | ( 228 ) | ​ |
| Distributions to Partners | — | ​ | ​ | ( 68,690 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 68,690 ) | ​ |
| Balance at June 30, 2019 | 128,391,191 | ​ | ​ | 1,417,962 | ​ | ​ | ( 50,573 ) | ​ | ​ | 12,090 | ​ | ​ | 1,379,479 | ​ |
| Comprehensive income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net income | — | ​ | 39,084 | ​ | — | ​ | ​ | 117 | 39,201 | ​ |
| Actuarially determined long-term liability adjustments | — | ​ | — | ​ | ( 119 ) | ​ | — | ( 119 ) | ​ |
| Total comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 39,082 | ​ |
| Common unit-based compensation | — | ​ | 3,066 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 3,066 | ​ |
| Distributions on deferred common unit-based compensation | — | ​ | ( 822 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 822 ) | ​ |
| Distributions from consolidated company to noncontrolling interest | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 183 ) | ​ | ​ | ( 183 ) | ​ |
| Distributions to Partners | — | ​ | ​ | ( 69,331 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 69,331 ) | ​ |
| Balance at September 30, 2019 | 128,391,191 | ​ | $ | 1,389,959 | ​ | $ | ( 50,692 ) | ​ | $ | 12,024 | ​ | $ | 1,351,291 | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Accumulated | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Number of | ​ | Limited | ​ | General | ​ | Other | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Limited Partner | ​ | Partners' | ​ | Partner's | ​ | Comprehensive | ​ | Noncontrolling | ​ | Total Partners’ | ​ |
| ​ | Units | Capital | Capital | Income (Loss) | Interest | Capital |
| ​ | ​ | (in thousands, except unit data) | ​ |
| Balance at January 1, 2018 | 130,704,217 | ​ | $ | 1,183,219 | ​ | $ | 14,859 | ​ | $ | ( 51,940 ) | ​ | $ | 5,348 | ​ | $ | 1,151,486 | ​ |
| Comprehensive income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net income | — | ​ | 154,348 | ​ | 1,560 | ​ | — | ​ | ​ | 148 | 156,056 | ​ |
| Actuarially determined long-term liability adjustments | — | ​ | — | ​ | — | ​ | 1,017 | ​ | — | 1,017 | ​ |
| Total comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 157,073 | ​ |
| Settlement of deferred compensation plans | 199,039 | ​ | ( 2,081 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 2,081 ) | ​ |
| Simplification Transactions fees | ​ | — | ​ | ​ | ( 1 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 1 ) | ​ |
| Common unit-based compensation | — | ​ | 3,006 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 3,006 | ​ |
| Distributions on deferred common unit-based compensation | — | ​ | ( 1,062 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 1,062 ) | ​ |
| General Partner contribution | — | ​ | — | ​ | ​ | 41 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 41 | ​ |
| Distributions from consolidated company to noncontrolling interest | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 162 ) | ​ | ​ | ( 162 ) | ​ |
| Distributions to Partners | — | ​ | ​ | ( 66,660 ) | ​ | ​ | ( 674 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 67,334 ) | ​ |
| Balance at March 31, 2018 | 130,903,256 | ​ | ​ | 1,270,769 | ​ | ​ | 15,786 | ​ | ​ | ( 50,923 ) | ​ | ​ | 5,334 | ​ | ​ | 1,240,966 | ​ |
| Comprehensive income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net income | — | ​ | 86,190 | ​ | — | ​ | — | ​ | ​ | 187 | 86,377 | ​ |
| Actuarially determined long-term liability adjustments | — | ​ | — | ​ | — | ​ | 1,016 | ​ | — | 1,016 | ​ |
| Total comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 87,393 | ​ |
| Settlement of deferred compensation plans | — | ​ | ( 664 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 664 ) | ​ |
| Issuance of units to Owners of SGP in Simplification Transactions | ​ | 1,322,388 | ​ | ​ | 14,742 | ​ | ​ | ( 15,106 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 364 ) | ​ |
| Issuance of units to SGP related to Exchange Transaction | ​ | 20,960 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ |
| Simplification Transactions fees | ​ | — | ​ | ​ | ( 59 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 59 ) | ​ |
| Contribution of units and cash by affiliated entity | ​ | ( 467,018 ) | ​ | ​ | 2,142 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,142 | ​ |
| Purchase of units under unit repurchase program | ​ | ( 383,599 ) | ​ | ​ | ( 7,639 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 7,639 ) | ​ |
| Common unit-based compensation | — | ​ | 2,897 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,897 | ​ |
| Distributions on deferred common unit-based compensation | — | ​ | ( 910 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 910 ) | ​ |
| Distributions from consolidated company to noncontrolling interest | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 194 ) | ​ | ​ | ( 194 ) | ​ |
| Distributions to Partners | — | ​ | ​ | ( 67,457 ) | ​ | ​ | ( 680 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 68,137 ) | ​ |
| Balance at June 30, 2018 | 131,395,987 | ​ | ​ | 1,300,011 | ​ | ​ | — | ​ | ​ | ( 49,907 ) | ​ | ​ | 5,327 | ​ | ​ | 1,255,431 | ​ |
| Comprehensive income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net income | — | ​ | 73,733 | ​ | — | ​ | — | ​ | ​ | 236 | 73,969 | ​ |
| Actuarially determined long-term liability adjustments | — | ​ | — | ​ | — | ​ | 814 | ​ | — | 814 | ​ |
| Total comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 74,783 | ​ |
| Simplification Transactions fees | ​ | — | ​ | ​ | ( 36 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 36 ) | ​ |
| Purchase of units under unit repurchase program | ​ | ( 683,641 ) | ​ | ​ | ( 13,431 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 13,431 ) | ​ |
| Common unit-based compensation | — | ​ | 3,011 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 3,011 | ​ |
| Distributions on deferred common unit-based compensation | — | ​ | ( 937 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 937 ) | ​ |
| Distributions from consolidated company to noncontrolling interest | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 246 ) | ​ | ​ | ( 246 ) | ​ |
| Distributions to Partners | — | ​ | ​ | ( 68,302 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 68,302 ) | ​ |
| Balance at September 30, 2018 | 130,712,346 | ​ | $ | 1,294,049 | ​ | $ | — | ​ | $ | ( 49,093 ) | ​ | $ | 5,317 | ​ | $ | 1,250,273 | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Illinois | ​ | ​ | Other and | ​ | ​ | ​ | ​ |
| ​ | Basin | Appalachia | Minerals | Corporate | Elimination | Consolidated | ​ |
| ​ | ​ | (in thousands) | ​ |
| Three Months Ended September 30, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal sales | ​ | $ | 256,293 | ​ | $ | 162,316 | ​ | $ | — | ​ | $ | 5,689 | ​ | $ | ( 4,293 ) | ​ | $ | 420,005 | ​ |
| Oil & gas royalties | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 13,969 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 13,969 | ​ |
| Transportation revenues | ​ | ​ | 18,778 | ​ | ​ | 1,246 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 20,024 | ​ |
| Other revenues | ​ | ​ | 5,264 | ​ | ​ | 852 | ​ | ​ | 208 | ​ | ​ | 7,434 | ​ | ​ | ( 3,030 ) | ​ | ​ | 10,728 | ​ |
| Total revenues | ​ | $ | 280,335 | ​ | $ | 164,414 | ​ | $ | 14,177 | ​ | $ | 13,123 | ​ | $ | ( 7,323 ) | ​ | $ | 464,726 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Three Months Ended September 30, 2018 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal sales | ​ | $ | 289,263 | ​ | $ | 168,365 | ​ | $ | — | ​ | $ | 10,056 | ​ | $ | ( 7,354 ) | ​ | $ | 460,330 | ​ |
| Transportation revenues | ​ | ​ | 27,132 | ​ | ​ | 1,565 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 28,697 | ​ |
| Other revenues | ​ | ​ | 3,565 | ​ | ​ | 716 | ​ | ​ | — | ​ | ​ | 7,606 | ​ | ​ | ( 3,156 ) | ​ | ​ | 8,731 | ​ |
| Total revenues | ​ | $ | 319,960 | ​ | $ | 170,646 | ​ | $ | — | ​ | $ | 17,662 | ​ | $ | ( 10,510 ) | ​ | $ | 497,758 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Nine Months Ended September 30, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal sales | ​ | $ | 875,544 | ​ | $ | 477,720 | ​ | $ | — | ​ | $ | 16,530 | ​ | $ | ( 12,463 ) | ​ | $ | 1,357,331 | ​ |
| Oil & gas royalties | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 36,254 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 36,254 | ​ |
| Transportation revenues | ​ | ​ | 79,303 | ​ | ​ | 3,589 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 82,892 | ​ |
| Other revenues | ​ | ​ | 10,557 | ​ | ​ | 2,753 | ​ | ​ | 1,079 | ​ | ​ | 26,745 | ​ | ​ | ( 9,229 ) | ​ | ​ | 31,905 | ​ |
| Total revenues | ​ | $ | 965,404 | ​ | $ | 484,062 | ​ | $ | 37,333 | ​ | $ | 43,275 | ​ | $ | ( 21,692 ) | ​ | $ | 1,508,382 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Nine Months Ended September 30, 2018 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal sales | ​ | $ | 875,792 | ​ | $ | 476,540 | ​ | $ | — | ​ | $ | 27,165 | ​ | $ | ( 19,632 ) | ​ | $ | 1,359,865 | ​ |
| Transportation revenues | ​ | ​ | 71,730 | ​ | ​ | 4,282 | ​ | ​ | — | ​ | ​ | 2 | ​ | ​ | — | ​ | ​ | 76,014 | ​ |
| Other revenues | ​ | ​ | 12,299 | ​ | ​ | 2,268 | ​ | ​ | — | ​ | ​ | 30,047 | ​ | ​ | ( 9,476 ) | ​ | ​ | 35,138 | ​ |
| Total revenues | ​ | $ | 959,821 | ​ | $ | 483,090 | ​ | $ | — | ​ | $ | 57,214 | ​ | $ | ( 29,108 ) | ​ | $ | 1,471,017 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2022 and | ​ | ​ | ​ |
| ​ | 2019 | 2020 | 2021 | Thereafter | Total |
| ​ | ​ | (in thousands) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Illinois Basin coal revenues | ​ | $ | 309,827 | ​ | $ | 590,062 | ​ | $ | 293,566 | ​ | $ | 16,744 | ​ | $ | 1,210,199 | ​ |
| Appalachia coal revenues | ​ | ​ | 189,198 | ​ | ​ | 366,017 | ​ | ​ | 132,376 | ​ | ​ | 444,735 | ​ | ​ | 1,132,326 | ​ |
| Other and Corporate coal revenues | ​ | ​ | 6,183 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 6,183 | ​ |
| Elimination | ​ | ​ | ( 4,571 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 4,571 ) | ​ |
| Total coal revenues (1) | ​ | $ | 500,637 | ​ | $ | 956,079 | ​ | $ | 425,942 | ​ | $ | 461,479 | ​ | $ | 2,344,137 | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended | ​ | Nine Months Ended | ​ |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | 2019 | 2018 | 2019 | 2018 |
| ​ | ​ | (in thousands, except per unit data) | ​ |
| Net income attributable to ARLP | ​ | $ | 39,084 | ​ | $ | 73,733 | ​ | $ | 373,582 | ​ | $ | 315,831 | ​ |
| Adjustments: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| General partner's equity ownership (1) | ​ | — | ​ | — | ​ | — | ​ | ( 1,560 ) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Limited partners' interest in net income attributable to ARLP | ​ | 39,084 | ​ | 73,733 | ​ | 373,582 | ​ | 314,271 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Less: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Distributions to participating securities | ​ | ( 1,133 ) | ​ | ( 1,281 ) | ​ | ( 3,360 ) | ​ | ( 3,813 ) | ​ |
| Undistributed earnings attributable to participating securities | ​ | — | ​ | ( 70 ) | ​ | ( 2,655 ) | ​ | ( 1,969 ) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net income attributable to ARLP available to limited partners | ​ | $ | 37,951 | ​ | $ | 72,382 | ​ | $ | 367,567 | ​ | $ | 308,489 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Weighted-average limited partner units outstanding – basic and diluted | ​ | 128,391 | ​ | 131,170 | ​ | 128,312 | ​ | 131,091 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Earnings per limited partner unit - basic and diluted (2) | ​ | $ | 0.30 | ​ | $ | 0.55 | ​ | $ | 2.86 | ​ | $ | 2.35 | ​ |
| (1) | Amounts presented for periods subsequent to the first quarter of 2018 reflect the impact of the Simplification Transactions which ended net income allocations and quarterly cash distributions to MGP after May 31, 2018. Prior to the Simplification Transactions, MGP maintained a 1.0001 % general partner interest in the Intermediate Partnership and a 0.001 % managing member interest in Alliance Coal and thus received quarterly distributions and income and loss allocations during this time period. |
| (2) | 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 1,133 and 1,216 for the three and nine months ended September 30, 2019, respectively, and 1,685 and 1,585 for the three and nine months ended September 30, 2018, respectively, were considered anti-dilutive under the treasury stock method. |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended | ​ | Nine Months Ended |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | ​ | 2019 | 2018 | 2019 | 2018 | ​ |
| ​ | ​ | (in thousands) | ​ |
| Beginning balance | ​ | $ | 53,425 | ​ | $ | 52,942 | ​ | $ | 49,539 | ​ | $ | 54,439 | ​ |
| Accruals increase | ​ | 2,395 | ​ | 2,072 | ​ | 6,603 | ​ | 4,998 | ​ |
| Payments | ​ | ( 2,663 ) | ​ | ( 2,123 ) | ​ | ( 8,588 ) | ​ | ( 7,968 ) | ​ |
| Interest accretion | ​ | 402 | ​ | 363 | ​ | 1,204 | ​ | 1,090 | ​ |
| Valuation loss (1) | ​ | — | ​ | — | ​ | 4,801 | ​ | 695 | ​ |
| Ending balance | ​ | $ | 53,559 | ​ | $ | 53,254 | ​ | $ | 53,559 | ​ | $ | 53,254 | ​ |
| (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. We conducted a mid-year 2019 review of our actuarial assumptions which resulted in a valuation loss in 2019 due to unfavorable changes in claims development and a decrease in the discount rate from 3.89 % to 3.06 %. Our mid-year 2018 actuarial review resulted in a valuation loss in 2018 primarily attributable to unfavorable changes in claims development, offset in part by an increase in the discount rate used to calculate the estimated present value of future obligations from 3.22 % to 3.82 %. |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended | ​ | Nine Months Ended | ​ |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | ​ | 2019 | 2018 | 2019 | 2018 |
| ​ | ​ | (in thousands) | ​ |
| Service cost | ​ | $ | 656 | ​ | $ | 634 | ​ | $ | 1,947 | ​ | $ | 1,896 |
| Interest cost (1) | ​ | 761 | ​ | 635 | ​ | 2,283 | ​ | 1,906 | ​ |
| Net amortization (1) | ​ | ( 1,145 ) | ​ | 1 | ​ | ( 3,436 ) | ​ | 2 | ​ |
| Net periodic benefit cost | ​ | $ | 272 | ​ | $ | 1,270 | ​ | $ | 794 | ​ | $ | 3,804 | ​ |
| (1) | Interest cost and net amortization is included in the Other expense line item within our condensed consolidated statements of income. |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Number of units | Weighted average grant date fair value per unit | Intrinsic value |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | (in thousands) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Non-vested grants at January 1, 2019 | ​ | 1,828,080 | ​ | $ | 17.18 | ​ | $ | 31,699 | ​ |
| Granted | 586,644 | ​ | ​ | 19.93 | ​ | ​ | ​ | ​ |
| Vested (1) | ( 885,381 ) | ​ | 12.38 | ​ | ​ | ​ | ​ |
| Forfeited | ( 6,558 ) | ​ | 21.06 | ​ | ​ | ​ | ​ |
| Non-vested grants at September 30, 2019 | 1,522,785 | ​ | 21.01 | ​ | ​ | 24,380 | ​ |
| (1) | During the nine months ended September 30, 2019, we issued 596,650 unrestricted common units to the LTIP participants. The remaining vested units were settled in cash to satisfy tax withholding obligations of the LTIP participants. |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Number of units | Weighted average grant date fair value per unit | Intrinsic value |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | (in thousands) | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Phantom units outstanding as of January 1, 2019 | ​ | 635,837 | ​ | $ | 27.34 | ​ | $ | 11,025 | ​ |
| Granted | ​ | 55,292 | ​ | ​ | 17.47 | ​ | ​ | ​ | ​ |
| Issued | ( 115,484 ) | ​ | ​ | 25.20 | ​ | ​ | ​ | ​ |
| Phantom units outstanding as of September 30, 2019 | 575,645 | ​ | 26.82 | ​ | ​ | 9,216 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended | ​ | Nine Months Ended | ​ |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | ​ | 2019 | 2018 | 2019 | 2018 |
| ​ | ​ | (in thousands) | ​ |
| Interest cost | ​ | $ | 1,217 | ​ | $ | 1,115 | ​ | $ | 3,649 | ​ | $ | 3,347 | ​ |
| Expected return on plan assets | ​ | ( 1,233 ) | ​ | ( 1,344 ) | ​ | ( 3,699 ) | ​ | ( 4,328 ) | ​ |
| Amortization of prior service cost | ​ | ​ | 46 | ​ | ​ | 46 | ​ | ​ | 139 | ​ | ​ | 140 | ​ |
| Amortization of net loss | ​ | 980 | ​ | 767 | ​ | 2,941 | ​ | 2,705 | ​ |
| Net periodic benefit cost (1) | ​ | $ | 1,010 | ​ | $ | 584 | ​ | $ | 3,030 | ​ | $ | 1,864 | ​ |
| (1) | Net periodic benefit cost for the Pension Plan is included in the Other expense line item within our condensed consolidated statements of income. |

​As a result of the AllDale Acquisition discussed in Note 3 – Acquisitions, we now control the underlying oil & gas mineral interests held by AllDale I & II. This control over the oil & gas mineral interests held by AllDale I & II reflects a strategic change in how we manage our business and how resources are allocated by our chief operating decision maker. Due to this strategic change, we realigned our reportable segments in the first quarter of 2019 to include our oil & gas mineral interests within a new Minerals reportable segment. In August 2019, our subsidiary, AR Midland acquired additional oil & gas mineral interests through the Wing Acquisition (Note 3 – Acquisitions) which are included within the Minerals reportable segment. As part of our realignment, we have also included the operations of our Mt. Vernon Transfer Terminal, LLC ("Mt. Vernon") and Mid-America Carbonates, LLC ("MAC") subsidiaries in the Illinois Basin reportable segment rather than Other and Corporate to better reflect our Illinois Basin related activities. Prior periods have been recast to include our oil & gas mineral interests in the Minerals segment, and Mt. Vernon and MAC in the Illinois Basin segment.​The Illinois Basin reportable segment includes currently operating mining complexes (a) Gibson County Coal, LLC's mining complex, which includes the Gibson North and Gibson South mines, (b) Warrior Coal, LLC's mining complex, (c) River View Coal, LLC's mining complex and (d) Hamilton County Coal, LLC's mining complex. The Illinois Basin reportable segment also includes our currently operating Mt. Vernon coal loading terminal in Indiana on the Ohio River. The Gibson North mine had been idled since the fourth quarter of 2015 in response to market conditions but resumed production in May 2018. ​The Illinois Basin reportable segment also includes Webster County Coal, LLC's Dotiki mining complex, which ceased production in August 2019, White County Coal, LLC's Pattiki mining complex, Hopkins County Coal, LLC's mining complex, which includes the Elk Creek mine, the Pleasant View surface mineable reserves and the Fies underground project, Sebree Mining, LLC's mining complex, which includes the Onton mine, Steamport, LLC and certain reserves, CR Services, LLC, CR Machine Shop, LLC, certain properties and equipment of Alliance Resource Properties, LLC ("Alliance Resource Properties"), ARP Sebree, LLC, ARP Sebree South, LLC, UC Coal, LLC and its subsidiaries, UC Mining, LLC and UC Processing, LLC and MAC. ​The Appalachia reportable segment includes currently operating mining complexes (a) Mettiki mining complex, (b) Tunnel Ridge, LLC mining complex and (c) 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 Appalachia reportable segment also includes the Penn Ridge property and certain properties and equipment of Alliance Resource Properties.​The Minerals reportable segment includes AllDale I & II, AR Midland, which holds the oil & gas mineral interests acquired in the Wing Acquisition, Alliance Royalty, LLC, AllRoy GP, LLC, CavMM, LLC, and Alliance Minerals' equity interests in both AllDale III (Note 11 – Investments) and Cavalier Minerals.​Other and Corporate includes marketing and administrative activities, ASI and its subsidiary, Matrix Design Group, LLC and its subsidiaries Matrix Design International, LLC and Matrix Design Africa (PTY) LTD ("Matrix Design"), Alliance Design Group, LLC ("Alliance Design") (collectively, the Matrix Design entities and Alliance Design are referred to as the "Matrix Group"), ASI's ownership of aircraft, Alliance Coal's coal brokerage activity, Alliance Minerals' equity investment in Kodiak which was redeemed in February 2019 by Kodiak (see Note 11 – Investments), certain of Alliance Resource Properties' land and mineral interest activities, Pontiki Coal, LLC's prior workers' compensation and pneumoconiosis liabilities, Wildcat Insurance, LLC ("Wildcat Insurance"), which assists the ARLP Partnership with its insurance requirements, and AROP Funding and Alliance Finance (both discussed in Note 9 – Long-Term Debt). ​ 24
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Illinois | ​ | ​ | Other and | Elimination | ​ | ​ |
| ​ | Basin | Appalachia | Minerals | Corporate | (1) | Consolidated |
| ​ | ​ | (in thousands) |
| Three Months Ended September 30, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Revenues - Outside | ​ | $ | 276,042 | ​ | $ | 164,414 | ​ | $ | 14,177 | ​ | $ | 10,093 | ​ | $ | — | ​ | $ | 464,726 | ​ |
| Revenues - Intercompany | ​ | ​ | 4,293 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 3,030 | ​ | ​ | ( 7,323 ) | ​ | ​ | — | ​ |
| Total revenues (2) | ​ | ​ | 280,335 | ​ | ​ | 164,414 | ​ | ​ | 14,177 | ​ | ​ | 13,123 | ​ | ​ | ( 7,323 ) | ​ | ​ | 464,726 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Segment Adjusted EBITDA Expense (3) | ​ | 173,779 | ​ | 107,990 | ​ | 2,517 | ​ | 9,878 | ​ | ( 5,083 ) | ​ | 289,081 | ​ |
| Segment Adjusted EBITDA (4) | ​ | 87,780 | ​ | 55,178 | ​ | 12,202 | ​ | 3,243 | ​ | ( 2,240 ) | ​ | 156,163 | ​ |
| Capital expenditures | ​ | 49,829 | ​ | 25,056 | ​ | — | ​ | 630 | ​ | — | ​ | 75,515 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Three Months Ended September 30, 2018 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Revenues - Outside | ​ | $ | 312,606 | ​ | $ | 170,646 | ​ | $ | — | ​ | $ | 14,506 | ​ | $ | — | ​ | $ | 497,758 | ​ |
| Revenues - Intercompany | ​ | ​ | 7,354 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 3,156 | ​ | ​ | ( 10,510 ) | ​ | ​ | — | ​ |
| Total revenues (2) | ​ | ​ | 319,960 | ​ | ​ | 170,646 | ​ | ​ | — | ​ | ​ | 17,662 | ​ | ​ | ( 10,510 ) | ​ | ​ | 497,758 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Segment Adjusted EBITDA Expense (3) | ​ | 199,813 | ​ | 105,412 | ​ | — | ​ | 12,396 | ​ | ( 8,405 ) | ​ | 309,216 | ​ |
| Segment Adjusted EBITDA (4) | ​ | 93,014 | ​ | 63,671 | ​ | 5,744 | ​ | 9,254 | ​ | ( 2,105 ) | ​ | 169,578 | ​ |
| Capital expenditures | ​ | 46,570 | ​ | 16,691 | ​ | — | ​ | 501 | ​ | — | ​ | 63,762 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Nine Months Ended September 30, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Revenues - Outside | ​ | $ | 952,941 | ​ | $ | 484,062 | ​ | $ | 37,333 | ​ | $ | 34,046 | ​ | $ | — | ​ | $ | 1,508,382 | ​ |
| Revenues - Intercompany | ​ | ​ | 12,463 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 9,229 | ​ | ​ | ( 21,692 ) | ​ | ​ | — | ​ |
| Total revenues (2) | ​ | ​ | 965,404 | ​ | ​ | 484,062 | ​ | ​ | 37,333 | ​ | ​ | 43,275 | ​ | ​ | ( 21,692 ) | ​ | ​ | 1,508,382 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Segment Adjusted EBITDA Expense (3) | ​ | 579,510 | ​ | ​ | 312,861 | ​ | ​ | 6,109 | ​ | ​ | 28,026 | ​ | ​ | ( 14,971 ) | ​ | 911,535 | ​ |
| Segment Adjusted EBITDA (4) | ​ | 306,592 | ​ | ​ | 167,612 | ​ | ​ | 32,432 | ​ | ​ | 28,155 | ​ | ​ | ( 6,721 ) | ​ | 528,070 | ​ |
| Total assets | ​ | 1,418,008 | ​ | ​ | 493,133 | ​ | ​ | 647,480 | ​ | ​ | 561,171 | ​ | ​ | ( 492,703 ) | ​ | 2,627,089 | ​ |
| Capital expenditures (5) | ​ | 157,759 | ​ | ​ | 79,389 | ​ | ​ | — | ​ | ​ | 3,994 | ​ | ​ | — | ​ | 241,142 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Nine Months Ended September 30, 2018 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Revenues - Outside | ​ | $ | 940,256 | ​ | $ | 483,023 | ​ | $ | — | ​ | $ | 47,738 | ​ | $ | — | ​ | $ | 1,471,017 | ​ |
| Revenues - Intercompany | ​ | ​ | 19,565 | ​ | ​ | 67 | ​ | ​ | — | ​ | ​ | 9,476 | ​ | ​ | ( 29,108 ) | ​ | ​ | — | ​ |
| Total revenues (2) | ​ | ​ | 959,821 | ​ | ​ | 483,090 | ​ | ​ | — | ​ | ​ | 57,214 | ​ | ​ | ( 29,108 ) | ​ | ​ | 1,471,017 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Segment Adjusted EBITDA Expense (3) | ​ | 586,160 | ​ | 301,448 | ​ | — | ​ | 35,671 | ​ | ( 22,793 ) | ​ | 900,486 | ​ |
| Segment Adjusted EBITDA (4) | ​ | 301,931 | ​ | 177,361 | ​ | 13,984 | ​ | 33,107 | ​ | ( 6,315 ) | ​ | 520,068 | ​ |
| Total assets | ​ | 1,418,222 | ​ | 437,804 | ​ | 162,103 | ​ | 348,794 | ​ | ( 149,550 ) | ​ | 2,217,373 | ​ |
| Capital expenditures | ​ | 130,604 | ​ | 51,511 | ​ | — | ​ | 2,293 | ​ | — | ​ | 184,408 | ​ |
| (1) | The elimination column represents the elimination of intercompany transactions and is primarily comprised of sales from the Matrix Group to our mining operations, coal sales and purchases between operations within different segments, sales of receivables to AROP Funding, financing between segments and insurance premiums paid to Wildcat Insurance. |
| (2) | Revenues included in the Other and Corporate column are primarily attributable to the Matrix Group revenues, administrative service revenues from affiliates, Wildcat Insurance revenues and brokerage coal sales. |
| (3) | 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. |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended | ​ | Nine Months Ended | ​ |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | ​ | 2019 | 2018 | 2019 | 2018 |
| ​ | ​ | (in thousands) | ​ |
| Segment Adjusted EBITDA Expense | ​ | $ | 289,081 | ​ | $ | 309,216 | ​ | $ | 911,535 | ​ | $ | 900,486 | ​ |
| Outside coal purchases | ​ | ( 10,599 ) | ​ | — | ​ | ( 15,910 ) | ​ | ( 1,442 ) | ​ |
| Other expense | ​ | ( 228 ) | ​ | ( 812 ) | ​ | ( 370 ) | ​ | ( 2,201 ) | ​ |
| Operating expenses (excluding depreciation, depletion and amortization) | ​ | $ | 278,254 | ​ | $ | 308,404 | ​ | $ | 895,255 | ​ | $ | 896,843 | ​ |
| (4) | Segment Adjusted EBITDA is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization, general and administrative expenses, settlement gain, asset impairment and acquisition gain. 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 | ​ | Nine Months Ended | ​ |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | ​ | 2019 | 2018 | 2019 | 2018 |
| ​ | ​ | (in thousands) | ​ |
| Consolidated Segment Adjusted EBITDA | ​ | $ | 156,163 | ​ | $ | 169,578 | ​ | $ | 528,070 | ​ | $ | 520,068 | ​ |
| General and administrative | ​ | ( 17,885 ) | ​ | ( 15,836 ) | ​ | ( 55,218 ) | ​ | ( 49,513 ) | ​ |
| Depreciation, depletion and amortization | ​ | ( 72,348 ) | ​ | ( 70,196 ) | ​ | ( 220,400 ) | ​ | ( 204,194 ) | ​ |
| Settlement gain | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 80,000 | ​ |
| Asset impairment | ​ | ( 15,190 ) | ​ | — | ​ | ( 15,190 ) | ​ | — | ​ |
| Interest expense, net | ​ | ( 11,606 ) | ​ | ( 9,808 ) | ​ | ( 33,510 ) | ​ | ( 30,532 ) | ​ |
| Acquisition gain | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 177,043 | ​ | ​ | — | ​ |
| Income tax (expense) benefit | ​ | ( 50 ) | ​ | ( 5 ) | ​ | ( 130 ) | ​ | 2 | ​ |
| Acquisition gain attributable to noncontrolling interest | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 7,083 ) | ​ | ​ | — | ​ |
| Net income attributable to ARLP | ​ | $ | 39,084 | ​ | $ | 73,733 | ​ | $ | 373,582 | ​ | $ | 315,831 | ​ |
| Noncontrolling interest | ​ | ​ | 117 | ​ | ​ | 236 | ​ | ​ | 7,407 | ​ | ​ | 571 | ​ |
| Net income | ​ | $ | 39,201 | ​ | $ | 73,969 | ​ | $ | 380,989 | ​ | $ | 316,402 | ​ |
| (5) | Capital Expenditures shown exclude the AllDale Acquisition on January 3, 2019 and the Wing Acquisition on August 2, 2019 (Note 3 – Acquisitions). |

​
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
​
Significant relationships referenced in this management's discussion and analysis of financial condition and results of operations include the following:
​
| ● | 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 "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 the mining operations of Alliance Resource Operating Partners, L.P. |

​
Summary
​
We operate in the United States as a diversified natural resource company that generates income from the production and marketing of coal to major domestic and international utilities and industrial users as well as income from oil & gas mineral interests. We began coal mining operations in 1971 and, since then, have grown through acquisitions and internal development in strategic producing regions to become the second largest coal producer in the eastern United States. As is customary in the coal industry, we have entered into long-term coal supply agreements with many of our customers. In 2014, we began acquiring oil & gas mineral interests in premier oil & gas producing regions across the United States.
​
We have three reportable segments, Illinois Basin, Appalachia and Minerals. We also have an "all other" category referred to as Other and Corporate. The two coal 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 mining segments include seven underground mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia and a coal loading terminal in Indiana on the Ohio River. The Minerals segment includes our oil & gas mineral interests which are located primarily in the Permian (Delaware and Midland), Anadarko (SCOOP/STACK), Williston (Bakken) and Appalachian basins. We have no operations within our Minerals reportable segment other than receiving royalties for our oil & gas mineral interests.
​
On August 2, 2019, our subsidiary, AR Midland, LP ("AR Midland") acquired certain mineral interests from Wing Resources LLC and Wing Resources II LLC (collectively, "Wing") for $144.9 million (the "Wing Acquisition"). On January 3, 2019 (the "AllDale Acquisition Date"), we acquired all of the limited partner interests not owned by Cavalier Minerals JV, LLC ("Cavalier Minerals") in AllDale Minerals LP ("AllDale I") and AllDale Minerals II, LP ("AllDale II", and collectively with AllDale I, "AllDale I & II") and the general partner interests in AllDale I & II for $176.0 million (the "AllDale Acquisition"). As a result of the Wing Acquisition, the AllDale Acquisition and our previous investments held through Cavalier Minerals, we control approximately 52,000 net royalty acres in premier oil & gas resource plays. These acquisitions provide us with diversified exposure to industry leading operators and are consistent with our general business strategy to grow our Minerals segment. Please read "Item 1. Financial Statements (Unaudited) - Note 3 – Acquisitions" of this Quarterly Report on Form 10-Q for more information on the Wing and AllDale Acquisitions.
​
As a result of the AllDale Acquisition, we now control the underlying oil & gas mineral interests held by AllDale I & II. This control over the oil & gas mineral interests held by AllDale I & II reflects a strategic change in how we manage our business and how resources are allocated by our chief operating decision maker. Due to this strategic change we realigned our reportable segments in the first quarter of 2019 to include our oil & gas mineral interests within a new Minerals reportable segment. The mineral interests acquired through the Wing Acquisition in August 2019 are also included within the Minerals reportable segment. As a part of our realignment, we have also included our Mt. Vernon Transfer Terminal, LLC ("Mt. Vernon") and Mid-America Carbonates, LLC ("MAC") in the Illinois Basin reportable segment rather than Other and Corporate to better reflect our Illinois Basin related activities. Prior periods have been recast to include our oil & gas mineral interests in the Minerals segment, and Mt. Vernon and MAC in the Illinois Basin segment.
27
| ● | Illinois Basin reportable segment includes currently operating mining complexes (a) Gibson County Coal, LLC's mining complex, which includes the Gibson North and Gibson South mines, (b) Warrior Coal, LLC's mining complex, (c) River View Coal, LLC's mining complex ("River View") and (d) Hamilton County Coal, LLC's mining complex ("Hamilton"). The Illinois Basin reportable segment also includes our currently operating Mt. Vernon coal loading terminal in Indiana on the Ohio River. The Gibson North mine had been idled since the fourth quarter of 2015 in response to market conditions but resumed production in May 2018. |
| ● | Appalachia reportable segment includes currently operating mining complexes (a) Mettiki mining complex ("Mettiki"), (b) Tunnel Ridge, LLC mining complex ("Tunnel Ridge"), and (c) MC Mining, LLC mining complex ("MC Mining"). Mettiki includes Mettiki Coal (WV), LLC's Mountain View mine and Mettiki Coal, LLC's preparation plant. The Appalachia reportable segment also includes the Penn Ridge property and certain properties and equipment of Alliance Resource Properties. |
| ● | Minerals reportable segment includes AllDale I & II, AR Midland, which acquired oil & gas mineral interests in the Wing Acquisition, Alliance Royalty, LLC, AllRoy GP, LLC, CavMM, LLC, and Alliance Minerals, LLC's ("Alliance Minerals") equity interests in AllDale Minerals III, LP ("AllDale III") and Cavalier Minerals. Please read "Item 1 - Financial Statements (Unaudited) - Note 11 – Investments" and "Note 10 – Variable Interest Entities" of this Quarterly Report on Form 10-Q for more information on Alliance Minerals and Cavalier Minerals. |
| ● | Other and Corporate includes marketing and administrative activities, Alliance Service, Inc. ("ASI") and its subsidiary, Matrix Design Group, LLC and its subsidiaries Matrix Design International, LLC and Matrix Design Africa (PTY) LTD ("Matrix Design"), Alliance Design Group, LLC (collectively along with Matrix Design, the "Matrix Group"), ASI's ownership of aircraft, Alliance Coal's coal brokerage activity, Alliance Minerals' equity investment in Kodiak Gas Services, LLC ("Kodiak") which was redeemed in February 2019 by Kodiak (see Note 11 – Investments) certain of Alliance Resource Properties' land and mineral interest activities, Pontiki Coal, LLC's legacy workers' compensation and pneumoconiosis liabilities, Wildcat Insurance, LLC, which assists the ARLP Partnership with its insurance requirements, AROP Funding, LLC ("AROP Funding") and Alliance Resource Finance Corporation ("Alliance Finance"). Please read "Item 1. Financial Statements (Unaudited) – Note 9 – Long-term Debt" "and Note 11 – Investments" of this Quarterly Report on Form 10-Q for more information on AROP Funding and the Kodiak redemption, respectively. |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ |
| ​ | 2019 | 2018 | 2019 | 2018 |
| ​ | ​ | (in thousands) | ​ | (per ton sold) | ​ |
| Tons sold | ​ | 9,320 | ​ | 10,071 | ​ | N/A | ​ | N/A |
| Tons produced | ​ | 10,071 | ​ | 9,874 | ​ | N/A | ​ | N/A |
| Coal sales | ​ | $ | 420,005 | ​ | $ | 460,330 | ​ | $ | 45.06 | ​ | $ | 45.71 | ​ |
| Coal - Segment Adjusted EBITDA Expense (1) (2) | ​ | $ | 286,564 | ​ | $ | 309,216 | ​ | $ | 30.75 | ​ | $ | 30.70 | ​ |
| (1) | For a definition of Segment Adjusted EBITDA Expense and related reconciliation to comparable generally accepted accounting principles ("GAAP") financial measures, please see below under "—Reconciliation of non-GAAP "Segment Adjusted EBITDA Expense" to GAAP "Operating Expenses." |
| (2) | Coal - Segment Adjusted EBITDA Expense is defined as consolidated Segment Adjusted EBITDA Expense excluding our Minerals segment. |
| ● | Labor and benefit expenses per ton produced, excluding workers' compensation, increased 2.5% to $9.92 per ton in the 2019 Quarter from $9.68 per ton in the 2018 Quarter. The increase of $0.24 per ton was primarily due to sales and production volume variances discussed above; |
| ● | Maintenance expenses per ton produced increased 3.4% to $3.66 per ton in the 2019 Quarter from $3.54 per ton in the 2018 Quarter. The increase of $0.12 per ton produced was primarily due to sales and production volume variances discussed above; |
| ● | Mine administration expenses increased $2.0 million for the 2019 Quarter compared to the 2018 Quarter, primarily due to higher outside services expenses; and |
| ● | Outside coal purchases increased $10.6 million in the 2019 Quarter as a result of sales from purchased coal, which generally cost higher on a per ton basis than our produced coal. |
| ● | Material and supplies expenses per ton produced decreased 5.6% to $10.68 per ton in the 2019 Quarter from $11.31 per ton in the 2018 Quarter. The decrease of $0.63 per ton produced resulted primarily from decreases of |

| $0.23 per ton for roof support, $0.12 per ton for outside expenses and $0.12 per ton for contract labor used in the mining process reflecting in part an improved production mix from lower cost mines discussed above; and |
| ● | Production taxes and royalty expenses incurred as a percentage of coal sales prices and volumes decreased $1.03 per produced ton sold in the 2019 Quarter compared to the 2018 Quarter primarily as a result of a favorable state production mix and lower excise tax rates in 2019. |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | September 30, | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | 2019 | 2018 | Increase (Decrease) | ​ |
| ​ | (in thousands) | ​ |
| Segment Adjusted EBITDA | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal - Illinois Basin | ​ | $ | 87,780 | ​ | $ | 93,014 | ​ | $ | (5,234) | ​ | (5.6) | % | ​ |
| Coal - Appalachia | ​ | 55,178 | ​ | 63,671 | ​ | (8,493) | ​ | (13.3) | % | ​ |
| Minerals | ​ | ​ | 12,202 | ​ | ​ | 5,744 | ​ | ​ | 6,458 | ​ | (1) | ​ | ​ |
| Other and Corporate | ​ | 3,243 | ​ | 9,254 | ​ | (6,011) | (65.0) | % | ​ |
| Elimination | ​ | (2,240) | ​ | (2,105) | ​ | (135) | (6.4) | % | ​ |
| Total Segment Adjusted EBITDA (2) | ​ | $ | 156,163 | ​ | $ | 169,578 | ​ | $ | (13,415) | ​ | (7.9) | % | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Tons sold | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal - Illinois Basin | ​ | 6,553 | ​ | 7,246 | ​ | (693) | ​ | (9.6) | % | ​ |
| Coal - Appalachia | ​ | 2,767 | ​ | 2,825 | ​ | (58) | ​ | (2.1) | % | ​ |
| Other and Corporate | ​ | 144 | ​ | 233 | ​ | (89) | (38.2) | % | ​ |
| Elimination | ​ | (144) | ​ | (233) | ​ | 89 | 38.2 | % | ​ |
| Total tons sold | ​ | 9,320 | ​ | 10,071 | ​ | (751) | ​ | (7.5) | % | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal sales | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal - Illinois Basin | ​ | $ | 256,293 | ​ | $ | 289,263 | ​ | $ | (32,970) | ​ | (11.4) | % | ​ |
| Coal - Appalachia | ​ | 162,316 | ​ | 168,365 | ​ | (6,049) | ​ | (3.6) | % | ​ |
| Other and Corporate | ​ | 5,689 | ​ | 10,056 | ​ | (4,367) | (43.4) | % | ​ |
| Elimination | ​ | (4,293) | ​ | (7,354) | ​ | 3,061 | 41.6 | % | ​ |
| Total coal sales | ​ | $ | 420,005 | ​ | $ | 460,330 | ​ | $ | (40,325) | ​ | (8.8) | % | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Other revenues | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal - Illinois Basin | ​ | $ | 5,264 | ​ | $ | 3,565 | ​ | $ | 1,699 | ​ | 47.7 | % | ​ |
| Coal - Appalachia | ​ | 852 | ​ | 716 | ​ | 136 | ​ | 19.0 | % | ​ |
| Minerals | ​ | ​ | 208 | ​ | ​ | — | ​ | ​ | 208 | ​ | (1) | ​ | ​ |
| Other and Corporate | ​ | 7,434 | ​ | 7,606 | ​ | (172) | ​ | (2.3) | % | ​ |
| Elimination | ​ | (3,030) | ​ | (3,156) | ​ | 126 | ​ | 4.0 | % | ​ |
| Total other revenues | ​ | $ | 10,728 | ​ | $ | 8,731 | ​ | $ | 1,997 | ​ | 22.9 | % | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| BOE volume and oil & gas royalties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Volume - BOE (3) | ​ | ​ | 433 | ​ | ​ | — | ​ | ​ | 433 | ​ | (1) | ​ | ​ |
| Oil & gas royalties | ​ | $ | 13,969 | ​ | $ | — | ​ | $ | 13,969 | (1) | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Segment Adjusted EBITDA Expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal - Illinois Basin | ​ | $ | 173,779 | ​ | $ | 199,813 | ​ | $ | (26,034) | ​ | (13.0) | % | ​ |
| Coal - Appalachia | ​ | 107,990 | ​ | 105,412 | ​ | 2,578 | ​ | 2.4 | % | ​ |
| Minerals | ​ | ​ | 2,517 | ​ | ​ | — | ​ | ​ | 2,517 | ​ | (1) | ​ | ​ |
| Other and Corporate | ​ | 9,878 | ​ | 12,396 | ​ | (2,518) | (20.3) | % | ​ |
| Elimination | ​ | (5,083) | ​ | (8,405) | ​ | 3,322 | 39.5 | % | ​ |
| Total Segment Adjusted EBITDA Expense (2) | ​ | $ | 289,081 | ​ | $ | 309,216 | ​ | $ | (20,135) | ​ | (6.5) | % | ​ |
| (1) | Percentage change not meaningful. |
| (2) | For a definition of Segment Adjusted EBITDA and related reconciliation to comparable GAAP financial measures, please see below under "—Reconciliation of non-GAAP "Segment Adjusted EBITDA" to GAAP "net income." |
| (3) | Barrels of oil equivalent ("BOE") is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel). |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Nine Months Ended September 30, | ​ |
| ​ | 2019 | 2018 | 2019 | 2018 |
| ​ | ​ | (in thousands) | ​ | (per ton sold) | ​ |
| Tons sold | ​ | 29,857 | ​ | 29,957 | ​ | N/A | ​ | N/A |
| Tons produced | ​ | 31,430 | ​ | 30,070 | ​ | N/A | ​ | N/A |
| Coal sales | ​ | $ | 1,357,331 | ​ | $ | 1,359,865 | ​ | $ | 45.46 | ​ | $ | 45.39 | ​ |
| Coal - Segment Adjusted EBITDA Expense (1) (2) | ​ | $ | 905,426 | ​ | $ | 900,486 | ​ | $ | 30.33 | ​ | $ | 30.06 | ​ |
| (1) | For a definition of Segment Adjusted EBITDA Expense and related reconciliation to comparable GAAP financial measures, please see below under "—Reconciliation of non-GAAP "Segment Adjusted EBITDA Expense" to GAAP "Operating Expenses." |
| (2) | Coal - Segment Adjusted EBITDA Expense is defined as consolidated Segment Adjusted EBITDA Expense excluding our Minerals segment. |

| ● | Labor and benefit expenses per ton produced, excluding workers' compensation, increased 3.6% to $9.53 per ton in the 2019 Period from $9.20 per ton in the 2018 Period. The increase of $0.33 per ton was primarily due to sales and production volume variances discussed above; and |
| ● | Outside coal purchases increased $14.5 million in the 2019 Period as a result of sales from purchased coal, which is generally higher-cost than produced coal, in the 2019 Period. |
| ● | Material and supplies expenses per ton produced decreased slightly to $10.98 per ton in the 2019 Period from $11.04 per ton in the 2018 Period. The decrease in material and supplies expenses per ton produced resulted primarily from improved production mix of lower-cost mines discussed above and related decreases of $0.14 per ton for power and fuel used in the mining process and $0.11 per ton for outside expenses, partially offset by an increase of $0.18 per ton in longwall subsidence expense; and |
| ● | Production taxes and royalty expenses incurred as a percentage of coal sales prices and volumes decreased $0.80 per produced ton sold in the 2019 Period compared to the 2018 Period primarily as a result of a favorable state production mix and lower excise tax rates in 2019. |

the 2018 Period reflecting the cash payment received net of $13.0 million of combined legal fees paid and associated incentive compensation accruals.​Asset impairment. During the 2019 Period, we ceased coal production at our Dotiki mine to focus on maximizing production at our lower-cost mines in the Illinois Basin. Consequently, we recorded a non-cash asset impairment charge of $15.2 million in the 2019 Period. Please read "Item 1. Financial Statements (Unaudited) - Note 4 – Long-Lived Asset Impairment" of this Quarterly Report on Form 10-Q.​Equity method investment income. Equity method investment income decreased to $1.5 million in the 2019 Period from $14.6 million in the 2018 Period as a result of the AllDale Acquisition and related consolidation of AllDale I & II in the 2019 Period. Equity method investment income in the 2019 Period is generated by our AllDale III investment. Prior to 2019, our investments in AllDale I & II also generated equity method investment income in addition to AllDale III. ​Acquisition gain. We were required to re-measure Cavalier Minerals' equity method investments in AllDale I & II to fair value as a result of the AllDale Acquisition. The re-measurement resulted in a gain of $177.0 million in the 2019 Period. Please read "Item 1. Financial Statements (Unaudited) - Note 3 – Acquisitions" of this Quarterly Report on Form 10-Q for more information on the acquisition gain in connection with the AllDale Acquisition.​Transportation revenues and expenses. Transportation revenues and expenses were $82.9 million and $76.0 million for the 2019 and 2018 Periods, respectively. The increase of $6.9 million was primarily attributable to an increase in average third-party transportation rates in the 2019 Period resulting from higher shipping costs for coal exported to international markets, partially offset by decreased coal tonnage for which we arrange third-party transportation at certain mines. Transportation revenues are recognized in an amount equal to transportation expenses when title to the coal passes to the customer.​Net income attributable to noncontrolling interest. Net income attributable to noncontrolling interest increased to $7.4 million in the 2019 Period from $0.6 million in the 2018 Period as a result of allocating $7.1 million of the acquisition gain discussed above to noncontrolling interest related to Bluegrass Minerals' equity interest in Cavalier Minerals.​34
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Nine Months Ended | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | September 30, | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | 2019 | 2018 | Increase (Decrease) | ​ |
| ​ | (in thousands) | ​ |
| Segment Adjusted EBITDA | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal - Illinois Basin | ​ | $ | 306,592 | ​ | $ | 301,931 | ​ | $ | 4,661 | ​ | 1.5 | % | ​ |
| Coal - Appalachia | ​ | 167,612 | ​ | 177,361 | ​ | (9,749) | ​ | (5.5) | % | ​ |
| Minerals | ​ | ​ | 32,432 | ​ | ​ | 13,984 | ​ | ​ | 18,448 | ​ | (1) | ​ | ​ |
| Other and Corporate | ​ | 28,155 | ​ | 33,107 | ​ | (4,952) | (15.0) | % | ​ |
| Elimination | ​ | (6,721) | ​ | (6,315) | ​ | (406) | (6.4) | % | ​ |
| Total Segment Adjusted EBITDA (2) | ​ | $ | 528,070 | ​ | $ | 520,068 | ​ | $ | 8,002 | ​ | 1.5 | % | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Tons sold | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal - Illinois Basin | ​ | 21,793 | ​ | 22,074 | ​ | (281) | ​ | (1.3) | % | ​ |
| Coal - Appalachia | ​ | 8,064 | ​ | 7,881 | ​ | 183 | ​ | 2.3 | % | ​ |
| Other and Corporate | ​ | 422 | ​ | 636 | ​ | (214) | (33.6) | % | ​ |
| Elimination | ​ | (422) | ​ | (634) | ​ | 212 | 33.4 | % | ​ |
| Total tons sold | ​ | 29,857 | ​ | 29,957 | ​ | (100) | ​ | (0.3) | % | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal sales | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal - Illinois Basin | ​ | $ | 875,544 | ​ | $ | 875,792 | ​ | $ | (248) | ​ | (0.0) | % | ​ |
| Coal - Appalachia | ​ | 477,720 | ​ | 476,540 | ​ | 1,180 | ​ | 0.2 | % | ​ |
| Other and Corporate | ​ | 16,530 | ​ | 27,165 | ​ | (10,635) | ​ | (39.1) | % | ​ |
| Elimination | ​ | (12,463) | ​ | (19,632) | ​ | 7,169 | 36.5 | % | ​ |
| Total coal sales | ​ | $ | 1,357,331 | ​ | $ | 1,359,865 | ​ | $ | (2,534) | ​ | (0.2) | % | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Other revenues | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal - Illinois Basin | ​ | $ | 10,557 | ​ | $ | 12,299 | ​ | $ | (1,742) | (14.2) | % | ​ |
| Coal - Appalachia | ​ | 2,753 | ​ | 2,268 | ​ | 485 | 21.4 | % | ​ |
| Minerals | ​ | ​ | 1,079 | ​ | ​ | — | ​ | ​ | 1,079 | (1) | ​ | ​ |
| Other and Corporate | ​ | 26,745 | ​ | 30,047 | ​ | (3,302) | ​ | (11.0) | % | ​ |
| Elimination | ​ | (9,229) | ​ | (9,476) | ​ | 247 | ​ | 2.6 | % | ​ |
| Total other revenues | ​ | $ | 31,905 | ​ | $ | 35,138 | ​ | $ | (3,233) | ​ | (9.2) | % | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| BOE volume and oil & gas royalties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Volume - BOE (3) | ​ | ​ | 1,113 | ​ | ​ | — | ​ | ​ | 1,113 | ​ | (1) | ​ | ​ |
| Oil & gas royalties | ​ | $ | 36,254 | ​ | $ | — | ​ | $ | 36,254 | (1) | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Segment Adjusted EBITDA Expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Coal - Illinois Basin | ​ | $ | 579,510 | ​ | $ | 586,160 | ​ | $ | (6,650) | ​ | (1.1) | % | ​ |
| Coal - Appalachia | ​ | 312,861 | ​ | 301,448 | ​ | 11,413 | ​ | 3.8 | % | ​ |
| Minerals | ​ | ​ | 6,109 | ​ | ​ | — | ​ | ​ | 6,109 | ​ | (1) | ​ | ​ |
| Other and Corporate | ​ | 28,026 | ​ | 35,671 | ​ | (7,645) | ​ | (21.4) | % | ​ |
| Elimination | ​ | (14,971) | ​ | (22,793) | ​ | 7,822 | ​ | 34.3 | % | ​ |
| Total Segment Adjusted EBITDA Expense | ​ | $ | 911,535 | ​ | $ | 900,486 | ​ | $ | 11,049 | ​ | 1.2 | % | ​ |
| (1) | Percentage change not meaningful. |
| (2) | For a definition of Segment Adjusted EBITDA and related reconciliation to comparable GAAP financial measures, please see below under "—Reconciliation of non-GAAP "Segment Adjusted EBITDA" to GAAP "net income." |
| (3) | Barrels of oil equivalent ("BOE") is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel). |

Illinois Basin – Segment Adjusted EBITDA increased 1.5% to $306.6 million in the 2019 Period from $301.9 million in the 2018 Period. The increase of $4.7 million was primarily attributable to higher coal sales prices, which increased 1.3% to $40.18 per ton sold in the 2019 Period from $39.68 per ton sold in the 2018 Period, and lower operating expenses, partially offset by lower coal sales volumes. Tons sold in the 2019 Period decreased 1.3% compared to the 2018 Period as a result of lower export sales from our Gibson South mine and the cessation of production at our Dotiki mine in the 2019 Period to focus on maximizing production at our lower-cost mines, offset in part by additional production units at the River View mine in the 2019 Period. Segment Adjusted EBITDA Expense decreased 1.1% to $579.5 million in the 2019 Period from $586.2 million in the 2018 Period due to reduced coal sales volumes. Segment Adjusted EBITDA Expense per ton increased slightly to $26.59 per ton sold in the 2019 Period due to certain cost increases described above under "–Coal - Segment Adjusted EBITDA Expense."​Appalachia – Segment Adjusted EBITDA decreased 5.5% to $167.6 million for the 2019 Period from $177.4 million in the 2018 Period. The decrease of $9.8 million was primarily attributable to reduced coal sales prices and increased operating expenses, partially offset by higher coal sales volumes. Coal sales, which increased slightly to $477.7 million in the 2019 Period from $476.5 million in the 2018 Period resulted from higher coal sales volumes of 8.1 million tons sold in the 2019 Period, compared to 7.9 million tons sold in the 2018 Period, due to a strong performance at our Tunnel Ridge longwall operation, partially offset by lower coal sales prices. Segment Adjusted EBITDA Expense increased 3.8% to $312.9 million in the 2019 Period from $301.4 million in the 2018 Period due to increased sales volumes and higher expenses per ton. Segment Adjusted EBITDA Expense per ton increased 1.4% to $38.80 per ton compared to $38.25 per ton sold in the 2018 Period reflecting lower recoveries at our Mettiki and MC Mining operations, offset in part by improved productivity at our Tunnel Ridge mine.​Minerals – Segment Adjusted EBITDA increased to $32.4 million for the 2019 Period from $14.0 million in the 2018 Period. The increase of $18.4 million primarily resulted from the AllDale Acquisition in the 2019 Period. ​Other and Corporate – Segment Adjusted EBITDA decreased by $4.9 million to $28.2 million in the 2019 Period compared to $33.1 million in the 2018 Period. The decrease was primarily attributable to reduced coal brokerage activity and mining technology product sales from Matrix Group.​Reconciliation of non-GAAP "Segment Adjusted EBITDA" to GAAP "net income" and reconciliation of non-GAAP "Segment Adjusted EBITDA Expense" to GAAP "Operating Expenses"​Segment Adjusted EBITDA (a non-GAAP financial measure) is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization, general and administrative expenses, settlement gain, asset impairment and acquisition gain. Segment Adjusted EBITDA is a key component of consolidated EBITDA, which is used as a supplemental financial measure by management and by external users of our financial statements such as investors, commercial banks, research analysts and others. We believe that the presentation of EBITDA provides useful information to investors regarding our performance and results of operations because EBITDA, when used in conjunction with related GAAP financial measures, (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation and planning decisions and (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations.​Segment Adjusted EBITDA is also used as a supplemental financial measure by our management for reasons similar to those stated in the previous explanation of EBITDA. In addition, the exclusion of corporate general and administrative expenses from consolidated Segment Adjusted EBITDA allows management to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments. ​36
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended | ​ | Nine Months Ended | ​ |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | ​ | 2019 | 2018 | 2019 | 2018 |
| ​ | ​ | (in thousands) | ​ |
| Consolidated Segment Adjusted EBITDA | ​ | $ | 156,163 | ​ | $ | 169,578 | ​ | $ | 528,070 | ​ | $ | 520,068 | ​ |
| General and administrative | ​ | (17,885) | ​ | (15,836) | ​ | (55,218) | ​ | (49,513) | ​ |
| Depreciation, depletion and amortization | ​ | (72,348) | ​ | (70,196) | ​ | (220,400) | ​ | (204,194) | ​ |
| Settlement gain | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 80,000 | ​ |
| Asset impairment | ​ | (15,190) | ​ | — | ​ | (15,190) | ​ | — | ​ |
| Interest expense, net | ​ | (11,606) | ​ | (9,808) | ​ | (33,510) | ​ | (30,532) | ​ |
| Acquisition gain | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 177,043 | ​ | ​ | — | ​ |
| Income tax (expense) benefit | ​ | (50) | ​ | (5) | ​ | (130) | ​ | 2 | ​ |
| Acquisition gain attributable to noncontrolling interest | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (7,083) | ​ | ​ | — | ​ |
| Net income attributable to ARLP | ​ | $ | 39,084 | ​ | $ | 73,733 | ​ | $ | 373,582 | ​ | $ | 315,831 | ​ |
| Noncontrolling interest | ​ | ​ | 117 | ​ | ​ | 236 | ​ | ​ | 7,407 | ​ | ​ | 571 | ​ |
| Net income | ​ | $ | 39,201 | ​ | $ | 73,969 | ​ | $ | 380,989 | ​ | $ | 316,402 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended | ​ | Nine Months Ended | ​ |
| ​ | ​ | September 30, | ​ | September 30, | ​ |
| ​ | ​ | 2019 | 2018 | 2019 | 2018 |
| ​ | ​ | (in thousands) | ​ |
| Segment Adjusted EBITDA Expense | ​ | $ | 289,081 | ​ | $ | 309,216 | ​ | $ | 911,535 | ​ | $ | 900,486 | ​ |
| Outside coal purchases | ​ | (10,599) | ​ | — | ​ | (15,910) | ​ | (1,442) | ​ |
| Other expense | ​ | (228) | ​ | (812) | ​ | (370) | ​ | (2,201) | ​ |
| Operating expenses (excluding depreciation, depletion and amortization) | ​ | $ | 278,254 | ​ | $ | 308,404 | ​ | $ | 895,255 | ​ | $ | 896,843 | ​ |

Liquidity and Capital Resources​Liquidity​We have historically satisfied our working capital requirements and funded our capital expenditures, investments and debt service obligations with cash generated from operations, cash provided by the issuance of debt or equity, borrowings under credit and securitization facilities and other financing transactions. We believe that existing cash balances, future cash flows from operations and investments, borrowings under credit facilities and cash provided from the issuance of debt or equity will be sufficient to meet our working capital requirements, capital expenditures and additional investments, debt payments, commitments and distribution payments. Nevertheless, our ability to satisfy our working capital requirements, to fund planned capital expenditures, to service our debt obligations or to pay distributions will depend upon our future operating performance and access to and cost of financing sources, which will be affected by prevailing economic conditions generally and in the coal and oil & gas industries specifically, as well as other financial and business factors, some of which are beyond our control. Based on our recent operating results, current cash position, current unitholder distributions, anticipated future cash flows and sources of financing that we expect to have available, we do not anticipate any constraints to our liquidity at this time. However, to the extent operating cash flow or access to and cost of financing sources are materially different than expected, future liquidity may be adversely affected. Please read "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2018. ​On August 2, 2019, we closed on the Wing Acquisition using cash on hand and borrowings under our revolving credit facility for $145.0 million. On February 8, 2019, Kodiak redeemed our preferred equity interest for $135.0 million in cash. On January 3, 2019, we acquired all of the limited partner interests in AllDale I & II not owned by Cavalier Minerals and the general partner interests in AllDale I & II for $176.0 million, which was funded with cash on hand and borrowings under our revolving credit facility. For more information on these transactions, please read "Item 1. Financial Statements (Unaudited) – Note 3. Acquisitions" and "– Note 11. Investments" of this Quarterly Report on Form 10-Q. ​In May 2018, the MGP board of directors approved the establishment of a unit repurchase program authorizing us to repurchase 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. Since inception through September 30, 2019, we have purchased units for a total of $75.8 million under the program. Please read "Part II - Item 2. Unregistered Sales of Equity Securities and Use of Proceeds" of this Quarterly Report on Form 10-Q for more information on unit repurchase program. ​Mine Development Project​We have begun development activity for MC Mining's Excel Mine No. 5 and currently anticipate deploying total capital of approximately $29.0 million to $31.0 million during 2019 with an additional $15.0 million to $20.0 million during the first half of 2020, which we expect to fund with cash from operations or borrowings under our credit facilities. We anticipate the new mine will enable us to access an additional 15 million tons of coal reserves with an expected mine life of approximately 12 years assuming the current level of production at MC Mining's Excel Mine No. 4 continues at the new mine. We expect the development plan for the new Excel Mine No. 5 will provide a seamless transition from the current MC Mining operation as its reserves deplete in 2020.​Cash Flows​Cash provided by operating activities was $408.4 million for the 2019 Period compared to $579.3 million for the 2018 Period. The decrease in cash provided by operating activities was impacted by $93 million received in the 2018 Period for a one-time settlement related to litigation with a customer and certain of its affiliates initiated in 2015. Additional decreases also resulted from unfavorable working capital changes related to trade receivables, inventories, prepaid expenses and other, and payroll and related benefit accruals. These decreases were partially offset by a favorable working capital change related to accounts payable. ​Net cash used in investing activities was $423.6 million for the 2019 Period compared to $195.3 million for the 2018 Period. The increase in cash used in investing activities was primarily attributable to the AllDale Acquisition, the Wing Acquisition and increased capital expenditures for mine infrastructure and equipment at various mines. This increase 38
was partially offset by cash received from the redemption of our equity securities in the 2019 Period and cash used for equity method investment contributions in the 2018 Period.​Net cash used in financing activities was $197.2 million for the 2019 Period compared to $352.4 million for the 2018 Period. The decrease in cash used in financing activities was primarily attributable to decreases in overall net payments on the securitization facility and unit repurchase program and increased net proceeds under our revolving facility in the 2019 Period compared to the 2018 Period.​Capital Expenditures​Capital expenditures increased to $241.1 million in the 2019 Period from $184.4 million in the 2018 Period. See our discussion of "Cash Flows" above concerning the increase in capital expenditures.​We currently project average estimated annual maintenance capital expenditures over the five-year period beginning in January 2019 of approximately $5.57 per ton produced. Our anticipated total capital expenditures (including investments) for the year ending December 31, 2019 are estimated in a range of $330.0 million to $350.0 million, which includes expenditures for maintenance capital at various mines. Management anticipates funding remaining 2019 capital requirements with cash and cash equivalents ($31.8 million as of September 30, 2019), cash flows from operations and investments, borrowings under revolving credit and securitization facilities and cash provided from the issuance of debt or equity. We will continue to have significant capital requirements over the long-term, which may require us to incur debt or seek additional equity capital. The availability and cost of additional capital will depend upon prevailing market conditions, the market price of our common units and several other factors over which we have limited control, as well as our financial condition and results of operations.​Debt Obligations​Credit Agreement. On January 27, 2017, our Intermediate Partnership entered into a Fourth Amended and Restated Credit Agreement (the "Credit Agreement") with various financial institutions. The Credit Agreement provides for a $494.75 million revolving credit facility, including a sublimit of $125 million for the issuance of letters of credit and a sublimit of $15.0 million for swingline borrowings (the "Revolving Credit Facility"), with a termination date of May 23, 2021. ​The Credit Agreement is guaranteed by all of the material direct and indirect subsidiaries of our Intermediate Partnership, and is secured by substantially all of the Intermediate Partnership's assets. Borrowings under the Revolving Credit Facility bear interest, at the option of the Intermediate Partnership, 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 4.43% as of September 30, 2019. At September 30, 2019, we had $9.3 million of letters of credit outstanding with $245.5 million available for borrowing under the Revolving Credit Facility. We currently 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 our Intermediate Partnership and its subsidiaries including, among other things, restrictions on incurrence of additional indebtedness and liens, sale of assets, investments, mergers and consolidations and transactions with affiliates, in each case subject to various exceptions, and the payment of cash distributions by our Intermediate Partnership if such payment would result in a certain fixed charge coverage ratio (as defined in the Credit Agreement). 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 and (b) a cash flow to interest expense ratio of not less than 3.0 to 1.0, in each case, during the four most recently ended fiscal quarters. The debt to cash flow ratio and cash flow to interest expense ratio were 1.13 to 1.0 and 14.7 to 1.0, respectively, for the trailing twelve months ended September 30, 2019. We remain in compliance with the covenants of the Credit Agreement as of September 30, 2019​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 39
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. At any time prior to May 1, 2020, the issuers of the Senior Notes may redeem up to 35% of the aggregate principal amount of the Senior Notes with the net cash proceeds of one or more equity offerings at a redemption price equal to 107.5% of the principal amount redeemed, plus accrued and unpaid interest, if any, to the redemption date. The issuers of the Senior Notes may also redeem all or a part of the notes at any time on or after May 1, 2020, at redemption prices set forth in the indenture governing the Senior Notes. At any time prior to May 1, 2020, the issuers of the Senior Notes may redeem the Senior Notes at a redemption price equal to the principal amount of the Senior Notes plus a "make-whole" premium, plus accrued and unpaid interest, if any, to the redemption date.​Accounts Receivable Securitization. On December 5, 2014, certain direct and indirect wholly owned subsidiaries of our Intermediate Partnership entered into a $100.0 million accounts receivable securitization facility ("Securitization Facility"). Under the Securitization Facility, certain subsidiaries sell trade receivables on an ongoing basis to our Intermediate Partnership, which then sells the trade receivables to AROP Funding, LLC ("AROP Funding"), a wholly owned bankruptcy-remote special purpose subsidiary of our Intermediate Partnership, which in turn borrows on a revolving basis up to $100.0 million secured by the trade receivables. After the sale, Alliance Coal, as servicer of the assets, collects the receivables on behalf of AROP Funding. The Securitization Facility bears interest based on a Eurodollar Rate. In January 2019, we extended the term of the Securitization Facility to January 2020. In October 2019, we extended the term from January 2020 to January 2021. At September 30, 2019, we had $66.5 million outstanding balance under the Securitization Facility.​Cavalier Credit Agreement. On October 6, 2015, Cavalier Minerals (see Note 10 – Variable Interest Entities) entered into a credit agreement (the "Cavalier Credit Agreement") with Mineral Lending, LLC ("Mineral Lending") for a $100.0 million line of credit (the "Cavalier Credit Facility"). The Cavalier Credit Facility terminated on October 6, 2019. During the term of the Cavalier Credit Facility, the commitment was reduced by any distributions received from Cavalier Minerals' investment in AllDale II. As of September 30, 2019, the commitment was $64.6 million. Mineral Lending is an entity owned by (a) Alliance Resource Holdings II, Inc. ("ARH II"), an entity owned by Mr. Craft and Kathleen S. Craft, (b) an entity owned by an individual who is an officer and director of ARH II ("ARH Officer") and (c) charitable foundations established by Mr. Craft and Kathleen S. Craft. We had no borrowings from the facility since its inception and there was no commitment fee under the facility.​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 by an indirect wholly-owned subsidiary of the Intermediate Partnership and entering into a master lease agreement for that equipment (the “Equipment Financing”). The Equipment Financing contains customary terms and events of default and provides for thirty-six monthly payments with an implicit interest rate of 6.25%, maturing on May 1, 2022. Upon maturity, the equipment will revert back to the Intermediate Partnership.​Other. We also have an agreement with a bank to provide additional letters of credit in an amount of $5.0 million to maintain surety bonds to secure certain asset retirement obligations and our obligations for workers' compensation benefits. At September 30, 2019, we had $5.0 million in letters of credit outstanding under this agreement.​Related-Party Transactions​We have related-party transactions and activities with Mr. Craft, MGP, ARH II and their respective affiliates. These related-party transactions and activities relate principally to 1) mineral leases with charitable foundations established by Mr. Craft and Kathleen S. Craft, 2) the use of aircraft, and 3) providing administrative services with respect to the mineral interests Mr. Craft acquired concurrently with the Wing Acquisition. We also have transactions with (a) WKY CoalPlay, LLC ("WKY CoalPlay") regarding three mineral leases, (b) Bluegrass Minerals Management, LLC ("Bluegrass Minerals") through its noncontrolling ownership interest in Cavalier Minerals and (c) AllDale III to support its acquisition of oil & gas mineral interests. For more information regarding the Wing Acquisition, WKY CoalPlay, Bluegrass Minerals and AllDale III, please read "Item 1. Financial Statements (Unaudited) – Note 3. Acquisitions", "– Note 10. Variable Interest Entities" and "– Note 11. Investments" of this Quarterly Report on Form 10-Q. Please read our Annual Report on Form 10-K for the year ended December 31, 2018, "Item 8. Financial Statements and Supplementary Data – Note 18. Related-Party Transactions" for additional information concerning related-party transactions. ​40
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
​
Commodity Price Risk
​
We have significant long-term coal supply agreements. Most of the long-term coal supply agreements are subject to price adjustment provisions, which periodically permit an increase or decrease in the contract price typically to reflect changes in specified indices or changes in production costs resulting from regulatory changes, or both.
​
Our results of operations are highly dependent upon the prices we receive for our coal. The short-term coal contracts favored by some of our customers leave us more exposed to risks of declining price periods. Also, a significant decline in oil and natural gas prices would have a significant impact on our royalty revenues.
​
We have exposure to coal, oil and natural gas sales prices and price risk for supplies that are used directly or indirectly in the normal course of coal and oil & gas production such as steel, electricity and other supplies. We manage our risk for these items through strategic sourcing contracts for normal quantities required by our operations. Historically, we have not utilized any commodity price-hedges or other derivatives related to either our sales price or supply cost risks.
​
Credit Risk
​
Most of our coal is sold to United States electric utilities or into the international markets through brokered transactions. Therefore, our credit risk is primarily with domestic electric power generators and reputable global brokerage firms. Our policy is to independently evaluate each customer's creditworthiness prior to entering into transactions and to constantly monitor outstanding accounts receivable against established credit limits. When deemed appropriate by our credit management department, we will take steps to reduce our credit exposure to customers that do not meet our credit standards or whose credit has deteriorated. These steps may include obtaining letters of credit or cash collateral, requiring prepayment for shipments or establishing customer trust accounts held for our benefit in the event of a failure to pay.
​
41
Exchange Rate Risk​Almost all of our transactions are denominated in United States dollars, and as a result, we do not have material exposure to currency exchange-rate risks. However, because coal is sold internationally in United States dollars, general economic conditions in foreign markets and changes in foreign currency exchange rates may provide our foreign competitors with a competitive advantage. If our competitors' currencies decline against the United States dollar or against foreign purchasers' local currencies, those competitors may be able to offer lower prices for coal to these purchasers. Furthermore, if the currencies of overseas purchasers were to significantly decline in value in comparison to the United States dollar, those purchasers may seek decreased prices for the coal we sell to them. Consequently, currency fluctuations could adversely affect the competitiveness of our coal in international markets.​Interest Rate Risk​Borrowings under the Revolving Credit Facility and Securitization Facility are at variable rates and, as a result, we have interest rate exposure. Historically, our earnings have not been materially affected by changes in interest rates and we have not utilized interest rate derivative instruments related to our outstanding debt. We had $240.0 million in borrowings under the Revolving Credit Facility and $66.5 million in borrowings under the Securitization Facility at September 30, 2019. A one percentage point increase in the interest rates related to the Revolving Facility and Securitization Facility would result in an annualized increase in interest expense of $3.1 million, based on borrowing levels at September 30, 2019. ​There were no other changes in our quantitative and qualitative disclosures about market risk as set forth in our Annual Report on Form 10-K for the year ended December 31, 2018.​
ITEM 4.
CONTROLS AND PROCEDURES
​
We maintain controls and procedures designed to provide reasonable assurance that information required to be disclosed in the reports we file with the Securities and Exchange Commission ("SEC") is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. As required by Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), we have evaluated, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) of the Exchange Act) as of September 30, 2019. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that these controls and procedures are effective as of September 30, 2019.
​
During the quarterly period ended September 30, 2019, other than the changes that have resulted or may result from the AllDale Acquisition and Wing Acquisition as discussed below, there have not been any changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) identified in connection with this evaluation that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
​
On August 2, 2019, we closed on an agreement to acquire approximately 9,000 net royalty acres in the Midland Basin, (the “Wing Acquisition”). On January 3, 2019 (the "AllDale Acquisition Date"), we acquired all of the limited partner interests in AllDale Minerals, LP and AllDale Minerals II, LP (collectively, "AllDale I & II") not owned by Cavalier Minerals JV, LLC and the general partner interests in AllDale I & II (the "AllDale Acquisition"). As of the AllDale Acquisition Date, we now own 100% of the general partner interests and, including the limited partner interests we hold indirectly through our ownership in Cavalier Minerals, approximately 97% of the limited partner interests in AllDale I & II. In addition, we assumed control and began accounting for AllDale I & II on a consolidated basis. For more information on the Wing and AllDale Acquisitions, please see "Item 1. Financial Statements (Unaudited) – Note 3. Acquisitions" of this Quarterly Report on Form 10-Q.
​
At this time, we continue to evaluate the business and internal controls and processes around the mineral interests acquired in both the Wing and AllDale Acquisitions and are making various changes to their management and organizational structures based on our business plan. We are in the process of implementing our internal control structure over the acquired businesses. We expect to complete the evaluation and integration of the internal controls and processes of the mineral interests acquired in the AllDale and Wing Acquisitions in the first and third quarters of 2020, respectively.
​
42
| ● | changes in coal prices, which could affect our operating results and cash flows; |
| ● | changes in competition in domestic and international coal markets and our ability to respond to such changes; |
| ● | legislation, regulations, and court decisions and interpretations thereof, both domestic and foreign, including those relating to the environment and the release of greenhouse gases, mining, miner health and safety and health care; |
| ● | deregulation of the electric utility industry or the effects of any adverse change in the coal industry, electric utility industry, or general economic conditions; |
| ● | risks associated with the expansion of our operations and properties; |
| ● | our ability to identify and complete acquisitions; |
| ● | dependence on significant customer contracts, including renewing existing contracts upon expiration; |
| ● | adjustments made in price, volume or terms to existing coal supply agreements; |
| ● | changing global economic conditions or in industries in which our customers operate; |
| ● | recent action and the possibility of future action on trade made by United States and foreign governments; |
| ● | the effect of new tariffs and other trade measures; |
| ● | liquidity constraints, including those resulting from any future unavailability of financing; |
| ● | customer bankruptcies, cancellations or breaches to existing contracts, or other failures to perform; |
| ● | customer delays, failure to take coal under contracts or defaults in making payments; |
| ● | fluctuations in coal demand, prices and availability; |
| ● | changes in oil & gas prices, which could, among other things, affect our investments in oil & gas mineral interests; |
| ● | our productivity levels and margins earned on our coal sales; |
| ● | decline in or change in the coal industry's share of electricity generation, including as a result of environmental concerns related to coal mining and combustion and the cost and perceived benefits of other sources of electricity, such as natural gas, nuclear energy and renewable fuels; |
| ● | changes in raw material costs; |
| ● | changes in the availability of skilled labor; |
| ● | our ability to maintain satisfactory relations with our employees; |
| ● | increases in labor costs including costs of health insurance and taxes resulting from the Affordable Care Act, adverse changes in work rules, or cash payments or projections associated with post-mine reclamation and workers' compensation claims; |
| ● | increases in transportation costs and risk of transportation delays or interruptions; |
| ● | operational interruptions due to geologic, permitting, labor, weather-related or other factors; |
| ● | risks associated with major mine-related accidents, mine fires, mine floods or other interruptions; |
| ● | results of litigation, including claims not yet asserted; |
| ● | foreign currency fluctuations that could adversely affect the competitiveness of our coal abroad; |
| ● | difficulty maintaining our surety bonds for mine reclamation as well as workers' compensation and black lung benefits; |
| ● | difficulty in making accurate assumptions and projections regarding post-mine reclamation as well as pension, black lung benefits and other post-retirement benefit liabilities; |
| ● | uncertainties in estimating and replacing our coal reserves; |
| ● | uncertainties in estimating and replacing our oil & gas reserves; |
| ● | uncertainties in the amount of oil & gas production due to the level of drilling and completion activity by the operators of our oil & gas properties; |

| ● | a loss or reduction of benefits from certain tax deductions and credits; |
| ● | difficulty obtaining commercial property insurance, and risks associated with our participation in the commercial insurance property program; |
| ● | difficulty in making accurate assumptions and projections regarding future revenues and costs associated with equity investments in companies we do not control; and |
| ● | other factors, including those discussed in "Item 1A. Risk Factors" and "Item 3. Legal Proceedings" in our Annual Report on Form 10-K for the year ended December 31, 2018. |
| ● | this Quarterly Report on Form 10-Q; |
| ● | other reports filed by us with the SEC; |
| ● | our press releases; |
| ● | our website http://www.arlp.com; and |
| ● | written or oral statements made by us or any of our officers or other authorized persons acting on our behalf. |

PART II ​OTHER INFORMATION​
ITEM 1.
LEGAL PROCEEDINGS
​
The information in Note 5. Contingencies to the Unaudited Condensed Consolidated Financial Statements included in "Part I. Item 1. Financial Statements (Unaudited)" of this Quarterly Report on Form 10-Q herein is hereby incorporated by reference. See also "Item 3. Legal Proceedings" of our Annual Report on Form 10-K for the year ended December 31, 2018.
​
ITEM 1A.
RISK FACTORS
​
In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors discussed in Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2018 and in Part II, Item 1A "Risk Factors" in our Form 10-Q for the quarterly period ended June 30, 2019, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K and on our prior Form 10-Qs are not our only risks. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial based on current knowledge and factual circumstances, if such knowledge or facts change, also may materially adversely affect our business, financial condition and/or operating results in the future.
​
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
​
On May 31, 2018, ARLP announced that the MGP board of directors approved the establishment of a unit repurchase program authorizing ARLP to repurchase up to $100 million of its outstanding limited partner common units. The unit repurchase program is intended to enhance ARLP’s ability to achieve its goal of creating long-term value for its unitholders and provides another means, along with quarterly cash distributions, of returning cash to unitholders. The program has no time limit and ARLP 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 ARLP to repurchase any dollar amount or number of units, and repurchases may be commenced or suspended from time to time without prior notice.
​
During the three months ended September 30, 2019, we did not repurchase and retire any units. Since inception of the program through September 30, 2019, we have repurchased and retired 3,985,010 units at an average unit price of $19.03 for an aggregate purchase price of $75.8 million with the remaining authorized amount for unit repurchases under this program being $24.2 million.
​
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
​
None.
​
ITEM 4.
MINE SAFETY DISCLOSURES
​
Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95.1 to this Quarterly Report on Form 10-Q.
​
ITEM 5.
OTHER INFORMATION
​
None.
​
​
45
ITEM 6.
EXHIBITS
​
| ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | Incorporated by Reference |
| ExhibitNumber | ​ | Exhibit Description | ​ | Form | ​ | SECFile No. andFilm No. | ​ | Exhibit | ​ | Filing Date | ​ | FiledHerewith* |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 3.1 | ​ | Fourth Amended and Restated Agreement of Limited Partnership of Alliance Resource Partners, L.P. | ​ | 8-K | ​ | 000-2682317990766 | ​ | 3.2 | ​ | 07/28/2017 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 3.2 | ​ | Amendment No. 1 to Fourth Amended and Restated Agreement of Limited Partnership of Alliance Resource Partners, L.P. | ​ | 10-K | ​ | 000-2682318634634 | ​ | 3.9 | ​ | 02/23/2018 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 3.3 | ​ | Amendment No. 2 to Fourth Amended and Restated Agreement of Limited Partnership of Alliance Resource Partners, L.P. | ​ | 8-K | ​ | 000-2682318883834 | ​ | 3.3 | ​ | 06/06/2018 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 3.4 | ​ | Amendment No. 3 to Fourth Amended and Restated Agreement of Limited Partnership of Alliance Resource Partners, L.P. | ​ | 8-K | ​ | 000-2682318883834 | ​ | 3.4 | ​ | 06/06/2018 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 3.5 | ​ | Amended and Restated Agreement of Limited Partnership of Alliance Resource Operating Partners, L.P. | ​ | 10-K | ​ | 000-26823583595 | ​ | 3.2 | ​ | 03/29/2000 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 3.6 | ​ | Amendment No. 1 to Amended and Restated Agreement of Limited Partnership of Alliance Resource Operating Partners, L.P. | ​ | 8-K | ​ | 000-2682318883834 | ​ | 3.5 | ​ | 06/06/2018 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 3.7 | ​ | Amended and Restated Certificate of Limited Partnership of Alliance Resource Partners, L.P. | ​ | 8-K | ​ | 000-2682317990766 | ​ | 3.6 | ​ | 07/28/2017 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 3.8 | ​ | Certificate of Limited Partnership of Alliance Resource Operating Partners, L.P. | ​ | S-1/A | ​ | 333-7884599669102 | ​ | 3.8 | ​ | 07/23/1999 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 3.9 | ​ | Certificate of Formation of Alliance Resource Management GP, LLC | ​ | S-1/A | ​ | 333-7884599669102 | ​ | 3.7 | ​ | 07/23/1999 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 3.10 | ​ | Third Amended and Restated Operating Agreement of Alliance Resource Management GP, LLC | ​ | 8-K | ​ | 000-2682318883834 | ​ | 3.7 | ​ | 06/06/2018 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 3.11 | ​ | Certificate of Formation of MGP II, LLC | ​ | 8-K | ​ | 000-2682317990766 | ​ | 3.5 | ​ | 07/28/2017 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 3.12 | ​ | Amended and Restated Operating Agreement of MGP II, LLC | ​ | 8-K | ​ | 000-2682317990766 | ​ | 3.4 | ​ | 07/28/2017 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 10.1 | ​ | Purchase and Sale Agreement by and between Wing Resources LLC, and Wing Resources II LLC, as sellers, and Alliance Resource Partners, L.P., as buyer, dated as of June 21, 2019 | ​ | 10-Q | ​ | 000-2682319997858 | ​ | 10.1 | ​ | 08/05/2019 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

46
| ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | Incorporated by Reference |
| ExhibitNumber | ​ | Exhibit Description | ​ | Form | ​ | SECFile No. andFilm No. | ​ | Exhibit | ​ | Filing Date | ​ | FiledHerewith* |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 10.2 | ​ | Eighth Amendment to the Receivables Financing Agreement, dated as of October 22, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 31.1 | ​ | Certification of Joseph W. Craft III, President and Chief Executive Officer of Alliance Resource Management GP, LLC, the general partner of Alliance Resource Partners, L.P., dated November 5, 2019, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 31.2 | ​ | Certification of Brian L. Cantrell, Senior Vice President and Chief Financial Officer of Alliance Resource Management GP, LLC, the general partner of Alliance Resource Partners, L.P., dated November 5, 2019, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 32.1 | ​ | Certification of Joseph W. Craft III, President and Chief Executive Officer of Alliance Resource Management GP, LLC, the general partner of Alliance Resource Partners, L.P., dated November 5, 2019, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 32.2 | ​ | Certification of Brian L. Cantrell, Senior Vice President and Chief Financial Officer of Alliance Resource Management GP, LLC, the general partner of Alliance Resource Partners, L.P., dated November 5, 2019, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 95.1 | ​ | Federal Mine Safety and Health Act Information | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 101 | ​ | Interactive Data File (Form 10-Q for the quarter ended September 30, 2019 filed in Inline XBRL). | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| 104 | ​ | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ |
| ​ | ALLIANCE RESOURCE PARTNERS, L.P. |
| ​ | ​ |
| ​ | By: | Alliance Resource Management GP, LLC |
| ​ | ​ | its general partner |
| ​ | ​ | ​ |
| ​ | ​ | /s/ Joseph W. Craft, III | ​ |
| ​ | ​ | Joseph W. Craft, III |
| ​ | ​ | President, Chief Executive Officer |
| ​ | ​ | and Chairman, duly authorized to sign on behalfof the registrant. |
| ​ | ​ | ​ |
| ​ | ​ | ​ |
| ​ | ​ | /s/ Robert J. Fouch | ​ |
| ​ | ​ | Robert J. Fouch |
| ​ | ​ | Vice President, Controller and |
| ​ | ​ | Chief Accounting Officer |


Question: What will be the real accrued intrinsic value of the Phantom Units and Non-vested grants at the end of 2019, if the expected return on plan assets is 5% of the total number of units and no further grants, issuance, forfeiture or vesting will take place after 30th Sept 2019 (in thousand dollars)?

Python solution:
def solution():
    #Define variables name and value
    non_vested_grants_sept_2019 = {"units": 1522785, "avg_grant_date_value": 21.01}
    phantom_units_sept_2019 = {"units": 575645, "avg_grant_date_value": 26.82} 
    expected_return = 5/100 

    #Do math calculation to get the answer
    intrinsic_value_non_vested_grants_dec_2019 = non_vested_grants_sept_2019["units"] * non_vested_grants_sept_2019["avg_grant_date_value"] * (1 + expected_return)
    intrinsic_value_phantom_units_dec_2019 = phantom_units_sept_2019["units"] * phantom_units_sept_2019["avg_grant_date_value"] * (1 + expected_return)
    total_intrinsic_value_dec_2019 = intrinsic_value_non_vested_grants_dec_2019 + intrinsic_value_phantom_units_dec_2019 

    answer = total_intrinsic_value_dec_2019/1000  # Convert to 'in thousands'
    return answer


Answer: 49804.1373375